Realtors HELP!

[Lewski709]

I don't get what happens when there is a Contract to Purchase and a Counter offer. The figures below are examples of this situation.


Contract to Purchase
selling price of 93k
500 down
Home Warranty with deductible paid by buyer at a cost of 405 charged to seller
seller to pay 2500 in closing costs, prepaids or toward points

Verbal agreement with realtor that we would sell for 100k and pay 2500 in closing costs

Verbal agreement with realtor that we would pay the extra 80 for the level 2 Home Warranty

Written Counter Offer
Purchase price of 102500 (which does include the 2500)
Earnest money to be 750
Home Warranty by Seller to be paid up to 325


Now...here's where I'm confused. What is written is different ALL over (price, those closing costs AND home warranty).

The counter mentions a higher sale price, but nothing of us giving 2500. The counter offers less of a Home Warranty. So which one takes priority over the other or do they just pick and choose what they want to use? What price does commission be paid off of?

If we are giving the buyer 2500 toward closing, I don't think we should have to pay commission on that. However, from the mixing and matching of both contracts....me head is now spinning.

 

[Gwene65]

When you recieve a counteroffer, the first offer becomes void. So when you write your acceptance or counter of the counter offer make sure to put back in the purchase agreement that you want the home warranty and etc.

Does that make any sense?

 

[Lewski709]

So the counter offer supercedes the other offer. The buyer gets the warranty at 325.00 and the commission is paid on 102500?

 

[Gwene65]

The commision is paid basid on whatever the purchase price is. And yes, the counteroffer supercedes the original offer. You can counter back though, and try to get the better home warranty.

 

[Lewski709]

We are the sellers, actually. We wanted to pay commission on the 100k sale price, but whatever. If we sell for 102,500 (again just examples) we pay commission on that. But the counter states a less agreed upon warranty than the Contract, so I guess we won't pay the extra 80 for the warranty. However, I wasn't sure because the realtor on the phone said they wanted the additional warranty...so we said fine.... and yet it's not in the counter offer that way. That's why I was confused as to what the agreement actually was. If you are right, we don't have to pay the more expensive warranty (unless he changed it and didn't make us resign).

 

[Gwene65]

Yeah-if they want the extended warranty, it has to be in writing. It actually has to say on the final purchase agreement or else no dice. They are stuck with the original basic warranty.

I wouldn't worry about the commision rate, your agent should be earning it anyway. Plus remember, he has to split it 50/50 with the other agent-if there is one.

 

[Talking Hands]

What is written in the counter offer goes if it is accepted. If not there is no contract and you go on looking for a buyer. Written supercedes any verbal agreement by the buyer. Realtor really can't make a decision on anything but the terms of the listing agreement except possibly to agree to cut the commission percentage and that rarely happens.

 

[Lewski709]

I need to ask for a copy of the paperwork the buyer signed, I think. I have a creepy feeling the realtor changed the counter offer AFTER we signed it based on a verbal...however he didn't change the other part based on a verbal.

After the buyer signed the counter (again I haven't seen it) there was an addendum signed by us for the commission rate to be on the 100k. There is NO telling if the buyers realtor gave that to the buyer to sign and quite frankly...I don't get what the buyer would need to sign it for anyhow. Commission really has nothing to do with the seller or buyer, when it comes right down to it. It's between the realtors (who btw, their realtor isn't wanting to get paid on the 100k vs 102500 even though we are giving them 2500 for closing costs).