6,393,609
The Seller has a right to make the offer, the Buyer has the right to offer what they want, and the Agent must do what they know is right and ethical.
-
Carol Williams
Wenatchee, WA
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Lyn Sims
Schaumburg, IL
-
Kat Palmiotti
Kalispell, MT
-
Frank Rubi
Metairie, LA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Olga Simoncelli
New Fairfield, CT
-
Diana Dahlberg
Pleasant Prairie, WI
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Alan May
Evanston, IL
-
Wayne Martin
Chicago, IL
-
Bob Crane
Stevens Point, WI
5,230,119
The seller can offer to pay the BA whatever the seller wishes to offer as compensation. The buyer can also offer the seller whatever purchase price the buyer wishes to offer.
We are facilitators and I do not see an ethical issue with what the seller is offering.
-
Richard Weeks
Dallas, TX
-
Carol Williams
Wenatchee, WA
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Frank Rubi
Metairie, LA
-
Nina Hollander, Broker
Charlotte, NC
-
Peter Testa
Danbury, CT
2,220,654
I agree with Bob Crane
-
Carol Williams
Wenatchee, WA
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Diana Dahlberg
Pleasant Prairie, WI
-
Anthony Acosta - ALLAT...
Atlanta, GA
1,311,397
Our MLS rules state: The amount of compensation offered through the MLS may not contain any provision that varies the amount of compensation offered based on conditions precedent or subsequent or on any performance, activity or event.
In other words, the commission to be paid is the commission offered in the mls based up close of a sale and not on a "full price" offer or any other modifier.
Your mls rules may be different.
At the same time, the listing agent is not precluded from offering a bonus for a "full price" offer or for meeting some other condition.
Yes, an unscrupulous buyer's agent may also try to persuade the buyer to pay too much under other circumstances just to earn a commission not just in this instance where the possibility of a higher commission is being dangled.
Follow your own ethical inclinations.
-
Tammy Lankford,
Eatonton, GA
-
Susie Kay
Plano, TX
-
Kat Palmiotti
Kalispell, MT
-
Greg Cremia
Nags Head, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Valeria Mola
Sunny Isles Beach, FL
-
Bob "RealMan" Timm
Minot, ND
-
Candice A. Donofrio
Fort Mohave, AZ
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Olga Simoncelli
New Fairfield, CT
-
Diana Dahlberg
Pleasant Prairie, WI
2,071,025
Why not?!
4 or 5%?
Seller wants to sell. Agree with Valeria.
It is not contingent, buyers agents will get 4% full price or not.
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Frank Rubi
Metairie, LA
-
Greg Cremia
Nags Head, NC
-
Debe Maxwell, CRS
Charlotte, NC
3,125,842
Seller can offer a higher commission and buyer agent can create a current comparable market analysis, then expertly advise potential home buyer.
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Candice A. Donofrio
Fort Mohave, AZ
5,216,825
Bob Crane has you covered.
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Frank Rubi
Metairie, LA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Diana Dahlberg
Pleasant Prairie, WI
2,390,620
I've actually seen that offer before here in Minot ND Therese Fergo . I don't know how it ended as I wouldn't touch it with a 10 foot pole.
-
Richard Weeks
Dallas, TX
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Frank Rubi
Metairie, LA
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
1,502,998
I don't know of any ethics rules offering it would violate. Could be some legal ones violated if the buyer's agent steers the client to offer on the property and to push for a full priced offer.
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Candice A. Donofrio
Fort Mohave, AZ
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Diana Dahlberg
Pleasant Prairie, WI
5,104,931
The seller can make any offer they wish to make. Commissions are negotiable. Lots of sellers offer bonuses to a sale by a certain date or price... nothing unethical about that. I wouldn't, by the way, ask questions about commissions in a public forum. And your responsibility as a buyer's agent is NOT to get the lowest price possible, but the BEST deal possible commensurate with market conditions and other contingencies important to buyer and seller.
-
Ron Tissier
Atlanta, GA
-
Richard Weeks
Dallas, TX
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Peter Testa
Danbury, CT
-
Frank Rubi
Metairie, LA
5,049,477
Bob Crane said it well. But it still has to appraise!
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Frank Rubi
Metairie, LA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
1,598,452
I agree with John Juarez
Commissions and bonus are not contingent.
Make an offer, print MLS and seller has to pay you 4%
-
John Juarez
Fremont, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Nina Hollander, Broker
Charlotte, NC
-
Greg Cremia
Nags Head, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
679,404
Let the Buyer Choose ...
I agree with Bob Crane
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Susie Kay
Plano, TX
-
Bob Crane
Stevens Point, WI
-
Nina Hollander, Broker
Charlotte, NC
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
711,852
The seller is offering what he is to generate interest. If the seller is willing to do this, there is nothing unethical about receiving this commission when the property closes.
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Frank Rubi
Metairie, LA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Diana Dahlberg
Pleasant Prairie, WI
758,035
Somebody is going to sell it & get 4%. Unethical would be to use the increased pay as grounds to steer a client into purchasing it.
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Frank Rubi
Metairie, LA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Diana Dahlberg
Pleasant Prairie, WI
-
Anthony Acosta - ALLAT...
Atlanta, GA
3,345,091
I am with Bob Crane on this. Follow the MLS rules. So many agents in my area seem to think the rules are not there for them.
-
Richard Weeks
Dallas, TX
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Bob "RealMan" Timm
Minot, ND
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Kathleen Daniels, Prob...
San Jose, CA
2,062,075
The buyer is certainly allowed to "offer" whatever they'd like. There's nothing unethical about it.
I can't speak to it's efficacy. It's not 'we agents' who decide which properties to write offers for, nor how much we're willing to write... I can't image any buyers' agent who would advise their buyer to write only a full-price offer, in order to gain the higher commission.
-
John Juarez
Fremont, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Peter Mohylsky, Beach ...
Miramar Beach, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Diana Dahlberg
Pleasant Prairie, WI
1,052,211
That's in an MLS listing? Ack.
I wonder if 'full price' = overpriced.
Slippery slope if buyer overpaid so agent could get a higher fee . . . those things tend to show up later, too . . .
-
Richard Weeks
Dallas, TX
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Lyn Sims
Schaumburg, IL
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
7,836,425
Follow the rules of your local MLS.
-
John Juarez
Fremont, CA
-
Frank Rubi
Metairie, LA
-
Nina Hollander, Broker
Charlotte, NC
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
5,772,575
Therese,
The buyerr rules. A
-
John Juarez
Fremont, CA
-
Frank Rubi
Metairie, LA
-
Nina Hollander, Broker
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Diana Dahlberg
Pleasant Prairie, WI
36,835
I think it comes down to full disclosure and proof of acting in your clients best interest on any advice in regards to offer price. I'm leary to say it's unethical but it can certainly be questionable. Great discussion question!
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
-
Debe Maxwell, CRS
Charlotte, NC
1,844,301
Jeez, it's a bonus for bringing a buyer not robbing a bank. They are enticing you the agent to bring a buyer by. Either do it or don't. If the house fits your buyer, get over there.
Your goal as a BA is to get your buyer into the house of their dreams. Price is only one part & maybe it won't be the lowest price THE BUYER or YOU wants. Then what?
-
Karen Climer
Orlando, FL
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Bob "RealMan" Timm
Minot, ND
1,239,901
I have seen $30K bonus on top of 2.5 % commission if closed in 30 days.
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Bob "RealMan" Timm
Minot, ND
3,416,038
It is ethical for the seller to offer it. As far as the buyer agent, if they are not looking out for their buyer it is an ethical problem on their side.
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
5,583,278
unethical in my book..... the goal of the buyer agent is to represent that client properly and not allow commission to interfere....
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
2,436,445
As long as it isn't against any local MLS rule, a seller can offer buyer agents whatever they want in terms of commission. A buyer broker needs to do what's right for/with their clients. If the full price is a great market price, then the right thing might be to pay full price (and get the 4%). If the full price is over market value, then paying that might not be the best choice.
-
John Juarez
Fremont, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
556,536
If you are a realtor then your code of ethics does not allow the compensation stated in mls to have contingecies. In this case the buyer agent will get 4% regardless of contract price. It might have to come out of listing agents side to cover difference.This does not mean a bonus can not be added to the commission for a full price contract. It just means the commission can not be contingent.
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
613,494
If I sell one of my personal properties, I always pay more commission than the going rate...or I pay a bonus. I never make it contingent on a full price offer.
It works.
I sell quickly for top dollar. Ethical and legal.
Eve
-
Bob "RealMan" Timm
Minot, ND
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
536,943
I see this quite often. Mostly when the sellers are transferring out of the area and need to sell fast.
-
Bob "RealMan" Timm
Minot, ND
-
John Juarez
Fremont, CA
-
Bob Crane
Stevens Point, WI
617,935
While we don’t see such offers every day, they aren’t uncommon.
As the buyers broker I can’t control or change what the seller is wanting or offering.
So, I show it to my buyer and explain the ramifications. If they love the house it may be worth making a full price offer and then I may give a rebate to the buyer. Each situation is a little different. Transparency and a full and truthful explanation is the key.
-
Bob "RealMan" Timm
Minot, ND
-
John Juarez
Fremont, CA
-
Kathleen Daniels, Prob...
San Jose, CA
427,267
Commission is offered by the seller. They are offering a higher fee based upon a price they stipulate. If the buyers are agreeable to the offered price, then that is their prerogative.
-
Susie Kay
Plano, TX
-
John Juarez
Fremont, CA
-
Kathleen Daniels, Prob...
San Jose, CA
1,725,996
Lots of great answers here. This forum is working well!
-
Bob "RealMan" Timm
Minot, ND
-
John Juarez
Fremont, CA
-
Kathleen Daniels, Prob...
San Jose, CA
921,504
Be aware it is the BANK that is buying the real estate.
If the appraisal doesn't work the 'we got ethics' concern is misplaced.
If the appraisal DOES work, it means the price beat down of the 'we got ethics folks been exposed.
Anytime something not ordinary occurs, most look for foul play instead of what best for a buyer and seller who agree on the value.
Is not this a version of what REBATE brokerages do? Alter the compensation the SELLER agreed to pay.
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
1,197,272
Interesting situation, ethical, why not?
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Wanda Kubat-Nerdin - W...
St. George, UT
509,449
I've seen that in my market. The bottom line is, how much is buyer wanting to pay for the property? However, having said that, I'm sure there are some agents who will try to convince their client for their own sake.
I've seen an agent double dipping by not putting a house in the mls but selling the home to her buyer. Her buyer has to sell their home in order to purchase a new one. In my market, buyers who have this type of contingency have a hard time getting a home because it's the seller's market with multiple offers. Even if their offer is accepted, they usually have to offer above list price and give the seller favorable terms in order to compete with other offers. This is just one example of an agent that's potentially doing an unscrupulous business. Another example is an open house before the home hits the market and the same agent is getting the buyer side. That just doesn't sound right to me.
-
Bob "RealMan" Timm
Minot, ND
-
Susie Kay
Plano, TX
2,781,173
It has come up with buyer agents that ask for more money that if a clean offer (?) is made, the commission can be revisited. If not, this is where we stand. Rel Estate can be complex or E-Z depending on the parties & priority
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
195,422
Regardless of how you price a property, how you pay an agent, or how you pay the cooperating agent, if someone wants to put their client first, they will. If someone else wants to put themselves ahead of the client, they will. This has to do with character, not pay structure.
As it stands, buyer's agents who are supposed to get the best deal for their clients, get paid more when the clients get a worse deal. The system is flawed, but it works because most people are fair.
Yes, there are people who are only in it for themselves. Those people win in the short term, but lose in the long-term. (True outside of real estate as well).
Generally speaking, the pay structure or amount will not change the character of the agent. If the agent is corrupt, a different commission structure is not going to suddenly make them an honorable person.
-
Karen Climer
Orlando, FL
2,182,552
337,854
I see things like this all the time. We don't have an MLS- and while we aren't typically members of NAR, we have our own trade association that provides guidance on issues like this. The guidance is pretty simple- the seller's agent commission must be equal or less than what is being offered to the buyer's agent. So if the seller's agent commission is 3% but they agree to pay a buyer's agent 4% - it's permitted, but not the other way around. As to advising my clients on price, If it's a condo- I just do a price analysis and guide the client based off that. I will also let them know of the broker incentive at full ask for purposes of full disclosure- but it's rarely going to impact anything I do (unless it could impact the clients opportunity to actually get to an accepted offer). For Co-op's- it's not just about price but also all aspects of the offer- down payment %, financing contigent or non-contigent, DTI, Post Closing Liquidity, and even whether the client has an attorney identified yet that they want to use for the deal.
5,868,565
4,883,242
Our MLS rules state that compensation offered is mls is not negotiable.
1,543,823
Pending what the comps say, it's a good strategy, because the buyers' agent could credit the bonus to the buyer if the house is worth the asking price.
It's not always an unethical proposition.
4,936,716
225,526
Anything is ethical if done in the right way. You come to an agreement with the seller and that becomes the guidelines you work with
629,708
3,164,294
If it's disclosed. Sounds like to me the perfect opportunity to rebate to a client (legal in my state) and get him a better deal.
4,160,899
Therese Fergo It might be okay subject to appraisal, and disclosed to the buyer!