Selling a home and the related commisions

[Cullenator]

On 8/18/2024 at 4:27 PM, toldozer said:

They're still going to get paid out of the pot that goes to the seller in terms of concessions 80% of the time. If your home is tip top and priced right you may have a buyer willing to pay their agent but if it's on the market longer than a day that concession to the buyer is going to be part of most offers from buyers.

Having just gone through the sale and purchase process...

On our purchase, we bought from one of the iBuyers.  They made it very clear that they were giving no concessions beyond adjusting to the appraised price (-6k).  With them holding as much inventory as they do in the market I bought in and their willingness to let us walk, Im guessing that number is going to be lower than 80%. 

On the sale side I have a hard time believing a buyers agent will leave their payout up in the air until Inspection Objection and Resolution when those concessions are negotiated - although Im guessing you're implying that it would be part of the initial offer but even that would leave it up to that final negotiation.  Its a hella risky game to play to count on it coming out of the sellers pocket.  I can absolutely see the sellers forking over some portion but at the end of the day I cant see why a buyers agent would sign with a client that didn't agree to the fact that they were ultimately responsible for their commission.

 

It does kinda blow my mind how many agents seem to be so determined to get paid by the seller as opposed to their client.

 

Edited August 20 by Cullenator

[toldozer]

1 hour ago, Cullenator said:

Having just gone through the sale and purchase process...

On our purchase, we bought from one of the iBuyers.  They made it very clear that they were giving no concessions beyond adjusting to the appraised price (-6k).  With them holding as much inventory as they do in the market I bought in and their willingness to let us walk, Im guessing that number is going to be lower than 80%. 

On the sale side I have a hard time believing a buyers agent will leave their payout up in the air until Inspection Objection and Resolution when those concessions are negotiated - although Im guessing you're implying that it would be part of the initial offer but even that would leave it up to that final negotiation.  Its a hella risky game to play to count on it coming out of the sellers pocket.  I can absolutely see the sellers forking over some portion but at the end of the day I cant see why a buyers agent would sign with a client that didn't agree to the fact that they were ultimately responsible for their commission.

 

It does kinda blow my mind how many agents seem to be so determined to get paid by the seller as opposed to their client.

 

So the way it will work is buyers will sign off on being responsible for the payment of the commission.  If it can be negotiated as part of the purchase that would be the goal.  Again if a home has been sitting on market seller would be dumb not to agree.  What no one anywhere can answer for me is how as agents we can know for sure that the buyer has the ability to pay the fee after whatever closing costs and down payment they are responsible for as we don't get all of their financial info like lenders do.  Is the option to sue if they can't hold up their end of the buyers agreement that they sign?  Firms I've talked to have basically said well we don't want to worry about the possibility of that.  If you sue a client for commission I'm assuming you wouldn't be getting any repeat business.  If you're buying and selling maybe the agent says hey I'll rep you on the buy side with no guarantee of payment if you list with me.  Again the people that this effects the most is going to be first time home buyers. 

Edited August 20 by toldozer

[PantherChris]

Reading the OPs post just tells me he hasn't got a clue about how much they actually do. 

[Cullenator]

31 minutes ago, PantherChris said:

Reading the OPs post just tells me he hasn't got a clue about how much they actually do. 

That was the point of the post.

 

I was asking for someone to educate me.