Anonymous

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Ambassador
3,036,937
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

They can ask for whatever they want.  Present the offer. Counter the offer or decline the offer.  The seller has many choices.  It's up to the seller. 

Apr 18, 2018 10:38 AM
Rainmaker
1,380,323
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

So if I'm reading this correctly the situation is seller offering to pass on 2.5% and buyer's agent has a BBA that says buyer to pay the difference between what is offered and 3% (I'm just making up numbers here).  They then put in the contract that "buyer's agent commission to be 3% instead of advertised 2.5%".

 

I don't recall ever seeing this myself, but if it were my sellers and I would counter that out as I'm sure not lowering my commission to cover their BBA.  We'd respond with something to the effect of "Buyer Agent's commission agreement is between the listing broker and the buyer agent's broker.  Listing Broker will not pay any buyer commission beyond what is stated in the MLS.  Should any additional consideration be desired by the buyer's agent, that will be between them and their client."

 

If the buyer's agent has a problem with that and wants to kill the deal over it, that's fine. 

Apr 18, 2018 09:29 AM
Rainmaker
4,059,133
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Any "terms" can be a part of a purchase agreement. The seller should be presented with the offer and respond appropriately. 

Apr 18, 2018 08:57 AM
Ambassador
4,200,609
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I'm with Michael Jacobs & Mike & Eve Alexander on this. In fact, I represented a buyer who has asked for this as recently as last month. Seller had no idea that his LA was offering less than half (in MLS) either!

The Contract is, indeed, between the buyer and the seller and it is the sellers' prerogative to request whatever they wish in the Offer. 

Apr 18, 2018 04:15 PM
Rainmaker
609,786
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

Here we go again...

Does NO ONE READ THE INTERPRETATION of the code of ethics???

1.  The BA can ask the seller to pay them a commission that is different from the offer of the MLS.  The buyer asks for it in the offer and it has nothing to do with the co-op fee.

2. What the BA cannot do is ask that the LA reduce their commission.

3.  Contracts are between the buyer and the seller and the buyer can ask for a new roof or more commission for their BA.

4.  Any LA that has a problem with that may be violating the code of ethics by interfering in a contract.

Anyone that wants legal NAR documentation on this, ask me, I will e-mail it to you.

Eve

Apr 18, 2018 10:10 AM
Rainer
87,820
Jeff Perlis Prime Properties
Prime Properties - Lake Arrowhead, CA
Experience Your Own Transformation!

Everything is negotiable. 

Apr 18, 2018 03:36 PM
Ambassador
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

It's not really an agent's call.  If you get an offer that changes what the MLS offers you present the offer and let your seller make a decision. 

Apr 18, 2018 01:26 PM
Ambassador
2,563,851
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

    Legit in Florida.  Present the offer. 

    MLS is just an offer of shared or paid compentation to other real estate brokers for bringing an offer that closes... it means nothing between Buyer and Seller.

 

Apr 18, 2018 10:35 AM
Rainmaker
4,054,053
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I've not seen this. Commissions may not be paid to unlicensed individuals. Are you sure that buyers brokers are not requesting a credit to the buyers. Regardless of what the commission is in MLS the agreement between buyer and their broker is their agreement.

Also it should be noted that agents are not parties to a purchase/sale contract and they are usually silent on commissions.

Apr 18, 2018 08:51 AM
Ambassador
5,357,799
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Well if the sellers agent is stiffing the buyers agent then somebody has to pay.

Was looking at some land listings a few days ago, and though this agent was charging his sellers 10% was only offering the buyers agent 2%.

If I was the buyer then i would want to even this up so that my agent was getting a fair deal.

Apr 18, 2018 04:42 PM
Rainmaker
1,873,665
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

It's very rare here but I have seen it and I think I may have even written one in the last couple of decades. If I did it was where I converted a FSBO and they were willing to pay X% but not 2X%.

Apr 18, 2018 01:04 PM
Ambassador
4,557,551
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Haven't seen this but it may be happening. Seller can decide how to proceed.

Apr 18, 2018 09:37 AM
Ambassador
4,312,753
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

That is perfectly fine - the sellers need to understand this.

Apr 18, 2018 10:55 PM
Ambassador
3,986,660
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

We have separate forms for the commission. It is not proper protocol to include it in the seller/buyer purchase agreement. They are not part of the compensation agreement.

Apr 18, 2018 06:26 PM
Rainmaker
3,985,837
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have seen where an agent wanted more commission than I was offereing.  Told them go to their buyer.  should have dealt with the issue with a buyer rep contract

Apr 18, 2018 03:06 PM
Rainmaker
3,427,761
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Many great responses.

Apr 18, 2018 02:53 PM
Rainmaker
1,104,614
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

There's been a lot of talk about redaction lately. That's what I think about this practice.

Apr 18, 2018 02:09 PM
Rainmaker
4,157,118
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Counter with the commission to be paid is as stated and the difference is none of my business how it is paid!

Apr 18, 2018 01:49 PM
Rainmaker
513,624
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

In my MLS if the commission adjustment is higher than what is posted, unless the buyer's agent has a buyer's agency agreement calling for that full percentage to be paid, this would be a violation.  

If they have the buyer's agency agreement, asking the seller to pay just removes some awkwardness at closing and creates a slight adjustment to the seller's net sheet.  

Apr 18, 2018 12:48 PM
Rainmaker
5,525,155
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

What Ryan Huggins - Thousand Oaks, CA said. A

Apr 18, 2018 12:12 PM
Rainmaker
520,451
Greg Cremia
Shore Realty of the Outer Banks - Nags Head, NC

Not legal in nc.

Apr 18, 2018 10:47 AM
Rainmaker
6,540,579
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

You just have to deal with these offers. The commission is what is offered by the seller and the listing agent.

Apr 18, 2018 08:53 AM
Rainmaker
4,433,583
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I have not seen it.

Apr 19, 2018 07:06 AM
Rainmaker
4,799,481
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

This should not be in the offer and should be negotiated prior to the offer.

Apr 19, 2018 05:54 AM
Rainmaker
3,321,246
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Here in NH commission is not suppose to be in a purchase contract. Most often done on an addendum. The good agents ask up front before submitting an offer. As a listing agent i see many buyer agents do it though where my seller says we will accept the price, but not paying anything extra. One yesterday raised the price to cover the buyer agent fee where the buyer was offended. They then told the buyer now you know how we feel. 

Apr 19, 2018 05:40 AM
Rainmaker
3,069,934
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Kathleen Daniels nailed this one!

Apr 19, 2018 05:37 AM
Rainmaker
2,020,150
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Sounds like a COE violation ! See SOP 16-16

Apr 19, 2018 03:02 AM
Rainmaker
1,514,105
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I've never seen one.

Apr 18, 2018 10:57 PM
Rainmaker
1,149,109
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

What state and where is the offer for?  There may be another way check with your broker.

Apr 18, 2018 11:04 AM
Rainmaker
5,571,310
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

buyer agents get paid what's in MLS by my team members.... we offer them half of the total commission...we are certainly not going to pay them more!!!

Apr 18, 2018 09:01 AM
Rainmaker
2,062,464
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

I hope you find the best answer on your guestion. 

Oct 26, 2018 10:16 PM
Rainmaker
1,596,531
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

A lot great answers are here, Good luck.

Oct 26, 2018 10:10 PM
Rainmaker
4,882,965
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Our commission requires the verbiage in additional provisions, and must be requested by the Buyer.  We have discount brokers here that offer minimal commission.

Apr 22, 2018 08:46 AM
Rainmaker
894,952
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

If the request is that the seller credit the buyer an amount to satisfy the buyer’s obligation to the buyer’s agent, it can be a credit and nothing is amiss. Of course, the seller does not have to agree. Agreement by the seller would be tantamount to the seller increasing the commission paid but directly indirectly to the BB and not through the listing agent as is normally done. I believe the lender would also have to be on board with the arrangement.

If the request is for the listing agent to pay anything to the buyer or buyer’s agent that is not spelled our mls offer of compensation, the request is out of line and may be a violation of mls rules.

Apr 19, 2018 10:13 PM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

You must be Yoda.

Apr 19, 2018 06:00 PM