Any realtors here?--question about listing contract

[sb1997]

I am going to list a house in the near future. I have met with a realtor and will probably list the house with her. My question is, if a buyer that is not represented by a realtor buys the house, would the listing agent still get the full commission. I am not talking about dual agency (where the realtor represents the seller and buyer). Would it be rude to ask the realtor to put in the contract that if a buyer without representation purchases the house, that the commission would be a lower amount? maybe 3% instead of 5%
TIA

 

[clh2]

You can always ask...but I'm not sure they would take you up on that offer.

A seller without representation finds out about your house somehow. That "somehow" probably will have something to do with your agent getting the word out (either a website, newspaper ads, a for sale sign, the MLS listings etc.)

In addition, a buyer without their own agent will probably be harder on YOUR realtor too.

 

[slamzim]

There should be a clause in the contract if you find the buyer that the commission is reduced.
They would have to have a realtor to get into your house, so it probably would be your agent...unless they contacted you directly, but of course there are safety concerns, etc. Hope this helps some, I'm not a realtor, but have dealt with quite a few.

 

[Cheshire Figment]

Technically your contract is with the Brokerage and that is to whom you owe the commission. The Broker then pays their agreed percentage (usually 50%) to the buyer;s broker, and then each broker will pay a certain amount or percentage to the agent(s) involved.

The only reduction you might get is if you were to find a buyer who does not have an agent and then the brokerage would have a dual-agent status.. And you would have to have that written into the contract.

 

[cvjw]

We bought our house without an agent. A co-worker told us about our house being for sale, and we called the agent listed on the sign. The seller's agent ended up with all of the commission since we didn't bring a agent to the table. I do second what the other poster said about the seller's agent doing double duty - she had to do extra work for us. If I ever buy another house, I will have my own agent.

 

[Allison]

If the buyer doesn't have their own agent, then the selling agent is doing that work. Of course, you always have the right to ask about it and see what kind of response you get.

 

[seashoreCM]

Commissions are negotiable.

A real estate broker is not likely to balk if, prior to signing the listing agreement, you name specific persons who already saw the house and, if they buy the house, no commission would be forthcoming.

After that, normally if anyone buys the house, the full commission is paid. This is according to the most common style of listing: "exclusive right to sell".

The so called "open" listing gives the broker the commission only if he brought the buyer (either through his agency or from another agency that contacted his agency) except that brokers on average tend to be less aggressive about advertising and pushing open listings.

When your broker brings a buyer, you don't know whether that buyer walked into your broker's office or walked into another broker's office and that broker contacted your broker.

Once in awhile a broker may reduce his commission on the spot to make a sale go through. This may depend on the second broker (if the buyer originally walked into a different agency) going along with this.

Disney hints: http://www.cockam.com/disney.htm

 

[Maddle]

That's been my experience also - you name a specific one or two parties that have expressed interest in the property and a sale to one of them is exempt. (There may be a time limit on the exemption too.) Other than that, once you sign contract, usually all comers are subject to the terms.

It's only fair to the real estate agent because the agent does a lot of work and incures expenses to market the property. (How else would a free spirit know your house is on the market unless they saw the newspaper advertising or MLS posting or sign in the yard?)

BUT - Every state has different laws about representation - be sure to ask your agent all of your questions before you sign the listing agreement.

Maddle

 

[sb1997]

Thank you for your ideas.
It is my parents' house. They both passed away and it has been quite an overwhelming process.

I do have 2 couples that have shown interest and 1 couple has listed their home with a realtor, but have not put a contract on our home because they can't afford 2 mortgages. The realtor did say if I gave her the names, she would add them to the contract and if they purchase, the contract would be void. Of course, I would still compensate the realtor in some way because she will be using her time and resources to list the house.

I would not do an open listing because I don't think any realtor would list it in MLS or spend much time with it knowing there was no guarantee they would be compensated. I don't think it would be fair to the realtor.

I will ask if the broker will consider a lower rate if the buyer is not represented by any realtors. I know the listing agent will have more work to do, that is why I was thinking about asking if they would consider 3-4% instead of the 5%. The worst thing that can happen is they will say no.

Thanks Again!