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Question for a real estate professional

david_mcmanusdavid_mcmanus
edited July 2008 in Seattle Real Estate
Let's say that you work for Windermere and are representing a nice couple who are looking for their first home. You show them a few homes, but they're not interested. Then they end up finding a beautiful home in a quiet cul-de-sac that is FSBO. Let's say they found it simply by driving through some neighborhoods on the way home from work. How are you supposed to handle this situation knowing that you probably will not get any commission? The reason I ask this is that the couple in this scenario are some close friends and it sounds like their agent is trying to pull one over on them.

Comments

  • RobroyRobroy
    david_mcmanus wrote:
    Let's say that you work for Windermere and are representing a nice couple who are looking for their first home. You show them a few homes, but they're not interested. Then they end up finding a beautiful home in a quiet cul-de-sac that is FSBO. Let's say they found it simply by driving through some neighborhoods on the way home from work. How are you supposed to handle this situation knowing that you probably will not get any commission? The reason I ask this is that the couple in this scenario are some close friends and it sounds like their agent is trying to pull one over on them.
    You can really get screwed when there is not an agent or attorney involved in a real estate deal. You need one or the other. 'Course, you can still get screwed, but the chances are lower.

    If I were the agent I would ask the buyer to sign a contract for the particular property and act as their "buyers agent" complete with contractual fiduciary responsibility. It would include a 3% commission which I would then EARN. It would also have a disclaimer that if the seller pays any commission, it will be subtracted from what the buyer has to pay. I'd then begin negotiations with the seller and ask him to pay the commission but consider it part of whatever price is agreed upon.
  • EastSiderEastSider
    <I'm not a real estate professional>

    Without a contract in-place with the agent, I thought that the buyer doesn't have to use the agent for a FSBO transaction (or could use a different agent). i.e, there are no legal obligations on either party till they agree to enter into a transaction.

    Is that not correct?
  • ira sira s
    Some agents (including Redfin) require that their clients sign a buyers agency agreement, and that agreement might contain language thats ates that the agent is owed a commission if a home is purchased while the agreement is in place, but absent that agreement, your friends don't owe that agent a damn thing.
  • RobroyRobroy
    ira s wrote:
    Some agents (including Redfin) require that their clients sign a buyers agency agreement, and that agreement might contain language thats ates that the agent is owed a commission if a home is purchased while the agreement is in place, but absent that agreement, your friends don't owe that agent a damn thing.
    Yep.

    I read a book back in 1981 called Winning Through Intimidation that preached that a real estate agent should never work with either a buyer or seller without a written agreement. He learned the hard way.
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