Replies to This Discussion

Permalink Reply by Edward J. McCouch on February 5, 2012 at 5:59am

Stick to your guns. Or take them before the commission

Permalink Reply by Linda McMillan on February 5, 2012 at 6:00am

If there is a Commission dispute then that affects the Escrow Instructions and escrow cannot close unitl the Commission Demands match up.  I have had a Buyers agent try to change the commission and hold up the closing. The Commission amount is first between the Broker and the Seller and then the split is stated in the MLS. The Commission History, what is stated in the MLS,  how any reduction is addressed and how  any reduction by the lender is to be handled should clarify. It is also stated on the HUD 1 which, has been sent to both brokers ahead of time. Get your Broker involved and get it closed.

Permalink Reply by John Young on February 5, 2012 at 6:09am

What do your MLS rules state? In CA the model rules which most MLS's follow state the commission is what was stated. There is a provision for short sales that includes language to the effect that " if bank modifies commission as part of acceptance, the comission will be split between selling and listing broker" or similar language. But for that to happen, the listing must have that type of language in it prior to acceptance of the offer!

Good luck, that's why boards have arbitration! You might want to talk to your broker (if you have one), close, and then arbitrate.

Permalink Reply by Sheila Vardakis on February 5, 2012 at 6:12am

Tavo,

 

The way our MLS works if if you post a 3% commission then that is what you pay, no ifs, ands or buts.  the listing agent in this case would take the hit on their commission.  what bothers me here is that the listing agent and broker are stating that they will cancel the contract over it.  who are they working for?  is that in the best interest of the seller? 

 

you brought a bona fide contract and buyer so there would be some consequences to them cancelling that and I would be sure to file a complaint if it does happen. 

Permalink Reply by Valerie Pressley on February 5, 2012 at 6:33am

Wow.  What is on the contract that the buyer and seller signed?  Hopefully, the commission is what you originally agreed to and what was advertised.  The title company (or attorney, whoever is handling your closing) must honor what is on the contract no matter what the agent and broker come up with at the last minute.

Permalink Reply by alisa hagner on February 5, 2012 at 6:35am

Talk to your board & MLS.

Permalink Reply by Wendy Smith on February 5, 2012 at 6:57am

close the transaction, then take it up with your local board.  make sure you have a print out of the mls which will reflect the fee payable to the buyers agent.   it matters not what is on the hud as any change to the buyer agent compensation is not a unilateral decision made by the listing broker.

this agent's conduct is violating the code of ethics on several levels - be sure to handle this via the broker...not the agent.

 

Permalink Reply by Karen Butler on February 5, 2012 at 7:09am

They are required to pay you according to what is stated in the MLS.  Print a copy of the MLS, make your broker aware,go ahead and close, the broker will either work it out with the listing broker, or you will be able to take it to the board.  Been there, done that, got my commission... after the fact.

Permalink Reply by Harold Sharpe on February 5, 2012 at 8:03am

Before I answer, I need to get up and explain my opinion of how short sales should be done.

It is a good read for Listing agents and could give you some great tips on how to sell homes.

Short Sale listing agents in my opinion have it wrong when reducing the commission at all on the buyers agent.

When I list a short sale,

I believe the first 3% should go to the buyers Brokerage. I'll say it again, the first 3% should just go to the buyers

brokerage. No ifs, ands, buts, hows, whys, or whats. No commission disclosure necessary other than to say,

"Buyers brokerage to receive the first 3%"  "Listing agent eats any and all commission losses"

That is how you sell homes, and put the client first.

I believe any short fall should fall on the Listing agent.

The listing agent is the one negotiating for the commissions and any loss should be on the negotiator.

If the listing agent is a poor negotiator then the listing agent should not be in the drivers seat and listing properties.

I have no problem doing it this way when I list short sales as I know my abilities, and if I fail I should pay the piper.

The buyers agent has to somehow keep the buyer in tune with the property for usually no less than 75 days. 

Keep in mind while this is happening, every friend of the buyers, is telling them to go buy another property.

The first 45 days of nothing happening is insane for today's buyer.

The buyers agent has no access to do the negotiating so they should have no loss.

Now lets get to the rude Listing agents who believe they should receive more on every deal....

Tell me why?

Did you drive a client around for weeks to find a home counseling them and helping them?

What did you do? You advertised in a manner to convince a seller who is upside down and usually out of work and has no

other option except foreclosure to short sell.  You met with the client and counseled them for 2-3 hours if that. Then you

took 10 -20 photos, entered a listing, hung a lock box, a sign, and called it a day

Then you upload some documents and call the bank, if at all, once or twice a week.

I have news for the short sale listing agents, the buyers agent has to do more to keep their client in the game than the

listing agent does on nearly every transaction.

All I am saying is Play fair and do your job. If you have a loss on your end eat it and stand tall.

If you think taking from others will work well for you, I can assure you your career is short lived.

On the other hand, if you do give at least half on the commission, treat them with common decent respect,

you will have agents happy to work with you.

If you, as a listing agent, feel you deserve more, go ahead and do the dual agency and keep the property off the mls so we

don't have to deal with agents who are greedy like yourself.

When I see an agent advertise the first 3% goes to buyers agent or brokerage, I know in my area I was the first to do it but

others have followed suit, I know this agent knows what they are doing.

When I see agents list properties that the commission is cut or anything talking about reduction I know I am dealing with

either greed or lack of confidence.  Either one, greed or lack of confidence, who wants to work with that for 3 months?

Oh By the way, hiring or having the excuse of "paying a negotiator" is no excuse either. If you can not do your business,

please help us all and don't do any part of it. If you pay a negotiator, it should come out of your half.

You don't see team members say, but I hired an assistant so we deserve more. In the words of Charles M Shultz,

"Good Grief"

As short sale listing agents, do you think you can update the status to "Backup" in the MLS as it happens, meaning the

moment you have the signed document and send it back to the buyers agent?

Re your question,...

"the listing agent decides to lower my commission because according to her our office does not pay what she pays,..."

Perhaps the listing agent can be a person of their word, and stand by it.  It sounds to me like she was the older sibling

and cheated her way through life on her younger siblings and still does not know how to play by the rules.

That's just my opinion but then again I play fair with others.

Applause... and 3 Boos.  We know who the greedy ones are.

.... stepping off of the soap box.

Permalink Reply by Bryant Tutas on February 5, 2012 at 8:16am

If buyers agents knew how to get paid they would not have to rely on listing brokers for their compensation. I do guarantee co-broke but I do not give them 3%

Permalink Reply by Jeff Payne on February 6, 2012 at 10:14am

I will give you an applause here :)  I always err on the side of the buyers agent getting paid more if a commission reduction occurs

Permalink Reply by Lisa Hanawalt on February 5, 2012 at 8:56am

Hi Tavo,

Close on the transaction, remember you can not cause harm to your Buyer. I don't know what state you are in, read your code of ethics, the Seller's agent and the Broker cannot change the commission with out your and your Broker's written permission... you will have to file an ethics complaint. I sure hope you have this information in writing. Keep the MLS sheet with the commission on it.  When this is advertised as x% that is what has to be paid.  Please check with your MLS.

Good Luck,

Lisa

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