I'll say it again - don't talk about breaching a contract in a public forum.
This is definitely an ass-hat move, but is it actually breach of contract if there isn't anything agreed to (verbally or in writing) between the OP and his Realtor?
There are Realtor's out there who will kick back part of the commission to buyers, in Cash or some other way (ie Aeromove agents give aeroplan miles, some will pay legals, etc)
Trying to negotiate that at the same time as you're negotiating for a place doesn't make sense, but there's nothing wrong with negotiating in advance.
IMO the OP needs to decide how much he wants the place. If you're at your top price, then just say that's as high as I can go and it's my final offer.
We all get it, but if you can't exceed your budget anymore, and to be honest there's nothing wrong with that, then obviously this house wasn't meant to be.
Yeah the OP really doesn't 'get it.' This is really about a house being too expensive for the OP's liking and as a result the OP trying to figure out who they can stomp on to make it work for them. As long as they get their's through whatever means, nothing else matters.
Is it a contract if they had not discussed it prior. I know when I have looked I never talked about or commisions with the realtor until the offer process started.
I don't know all the details, but if this is something that could potentially be litigated, don't make it public.
Wow, this is a dick move. If you go to a restaurant and the meal costs more than you wanted it to do you ask the server to give up their tip to cover your meal since you "really wanted to eat there?"
I don't know all the details, but if this is something that could potentially be litigated, don't make it public.
For sure, but it sounds like a typical arrangement here; the seller is the one that pays the commissions to the buying realtor (the OP's realtor).
The only kinds of contracts I've seen with the buyer's realtor is exclusivity type contracts; that you agree to not go to 10 different realtors for 10 different places or go directly to the selling realtor after finding the place so the selling realtor can double-end the deal and kick back part of the increased profit to the buyer (though realtors usually give a discount for double-ended deals anyway).
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You are trying to change the rules of the game after time has expired. Many people don't understand the nature of someone who makes their living based on 100% commission and this is very insulting to even bring up to the agent.
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Wow, this is a dick move. If you go to a restaurant and the meal costs more than you wanted it to do you ask the server to give up their tip to cover your meal since you "really wanted to eat there?"
I think the protocol is to walk away when they tell you that the DQ Blizzard is $6.
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but only if you are going to walk, its a business deal, both your and the vendors agent are in the business of selling the house, as a buyer you arn't really represented by either of them, and, unless things are different over there, you don't have a contract with either of them.
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Originally Posted by troutman
I'll say it again - don't talk about breaching a contract in a public forum.
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Originally Posted by fotze
Is it a contract if they had not discussed it prior. I know when I have looked I never talked about or commisions with the realtor until the offer process started.
This has come up a few times, so just to clarify there is a contract buyers agents can have their buyers sign when they start working with them. Both in AB & BC.
It ensures that if the buyer does buy a place, the agent will be entitled to a certain commission. The reason for it is to formalize the working the relationship and prevent things like:
-Buyer looking at 50 places with you and then writing the offer with their brother who just happens to have a real estate license you didn't know about.
-Buyer ends up buying a place where the commission offered to the buyers agent is really small & this agreement can entitle compensation from the buyer in the difference.
Many agents don't use it, and it sounds like the OP's didn't either.
They just work in good faith & a trusting relationship with their buyers. Take the chance that the buyer might like a place listed by a discount broker with a really small commission or that once in a while a buyer might screw you over and pull the buy through my brother move.
This OP shows a perfect example of why the contract exists though, and a situation where the agent would have benefited from the agreement.
The OP is a perfect example of why I slack off at work. Work too hard and fast and people want to take advantage of you thinking you didn't earn your money.
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I have never signed a contract as a buyer. The only moral line I have in a buying situation is I won't use an agent to find a house then try and buy it without them using the vendors agent alone, I have had vendors agents quietly suggest this when it was apparent I was backing out of a deal.
If I was an agent I would rather a client told me that a deal was to expensive and gave me the chance of dropping my fee than just walking away from it and thus causing me more work.
Windsor, I'm not sure if you're under a significant reaty company like Remax, but if you are, can you give us an idea of what percentage of your cheque goes to the mothership? I have a friend with Remax and he's never given me a number, but he says it's pretty significant.
As someone who does the taxes for several real estate agents, the amount they pay to 'The Mothership' (I'm totally stealing that btw) is very significant.
From a tax standpoint its their primary expense, and some agencies cost more than others and provide more services than others, but its huge.
Aside from agency costs there arent a whole lot of expenses associated with being a realtor, thats why theres tons of people who figure that anyone can do it and 'become realtors.' Anyone thats a good realtor knows these people and why they dont tend to last long.
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I have never signed a contract as a buyer. The only moral line I have in a buying situation is I won't use an agent to find a house then try and buy it without them using the vendors agent alone, I have had vendors agents quietly suggest this when it was apparent I was backing out of a deal.
If I was an agent I would rather a client told me that a deal was to expensive and gave me the chance of dropping my fee than just walking away from it and thus causing me more work.
No kidding. Plus it's not like the realtor has to accept it. It's part of negotiating the best deal for yourself.
I don't understand all the outrage in this thread. It used to be a common pracvtice for realtors to finish the deal by modifying their commissions. That was when they actually had to work for sales.
Nowdays, with money falling off trees everywhere it's seen a a scummy thing to do to suggest the realtor charges less for their services.
I guess you can chalk this one up for the current generation then. Decency over cash, not buying what you cannot afford, put that next to ending slavery and female equality.
This has nothing do with being able to afford it or not. It's about getting the best deal. If you state that your ceiling is x amount of dollars then the realtor has to negatiate down or complete that sale with all tools available. Lowering their commission is in that toolbox.
Make no mistake about one thing. The realtor does not give a rats behind about whether you got a good deal or not (buyer or seller). They only care about closing the deal and moving on to the next one. Unfortunately decency get's in the way of such cut throat business.
I guess you can chalk this one up for the current generation then. Decency over cash, not buying what you cannot afford, put that next to ending slavery and female equality.
This has nothing do with being able to afford it or not. It's about getting the best deal. If you state that your ceiling is x amount of dollars then the realtor has to negatiate down or complete that sale with all tools available. Lowering their commission is in that toolbox.
Make no mistake about one thing. The realtor does not give a rats behind about whether you got a good deal or not (buyer or seller). They only care about closing the deal and moving on to the next one. Unfortunately decency get's in the way of such cut throat business.
I personally understand the idea of trying to get a deal done at the stated price and there certainly shouldn't be any sacredness to a Realtor's Comission in the process either. The problem everyone has is rather the attitude of the OP.
There's a huge difference between the following attitudes:
"My price is X and this latest offer price is higher than X, can you help me get it for X, and if not I'm planning on walking because I don't want to spend any more." This places the onus on the Realtor to make the deal and pursue any and all options including their own commission. It's also a hell of a lot more respectful than:
"Can you take it on the chin and eat half of your comission because ultimately I don't respect you or what you bring to this process and I view you as a hinderence to me getting what I want?"
The first one's also more likely to achieve the price desired because ultimately the second method is a real good demotivator for the Realtor to care about helping the OP out. Just ask Pylon about who gets the best deals at car dealerships, in the end it's not the guy who insists on bending over the salesman.
as a guy whose business is based on 100% commissions and I do alot of work "probono" just to get people to buy, i understand the issue most have here.
however, as someone who has gone through the buying process of real estate, let me tell you that i also feel like the system is gamed and the buyers agent is really a sellers agent in disguise.
i dont blame many for feeling like they are taken advantage of within the usual real estate buying process.
I personally understand the idea of trying to get a deal done at the stated price and there certainly shouldn't be any sacredness to a Realtor's Comission in the process either. The problem everyone has is rather the attitude of the OP.
There's a huge difference between the following attitudes:
"My price is X and this latest offer price is higher than X, can you help me get it for X, and if not I'm planning on walking because I don't want to spend any more." This places the onus on the Realtor to make the deal and pursue any and all options including their own commission. It's also a hell of a lot more respectful than:
"Can you take it on the chin and eat half of your comission because ultimately I don't respect you or what you bring to this process and I view you as a hinderence to me getting what I want?"
This, the outrage is based on the fact that despite how you may feel about realtors they are still a professional providing you with a service and deserve a basic level of respect for it.
If they want to cut their commission to save a sale, great, but it's completely unfair to say "well turns out I can't afford to buy this home AND pay you, but hey you don't care about me anyways, so eff it"
This video was in reaction to spec work in the advertising/design industry, but I think it's relevant to this conversation as well.
