Selling agent refuses to submit offer unless I pay them 3% buyer fee

Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes

3y

Sounds like they sent you a standard buyer's agency agreement, required for you to work with the buyer's agent who showed you the property and had their standard language in there. A lot of listing agents, if not most, don't want to work with unrepresented buyers or act as a dual agent which is actually illegal in some states, and high risk in terms of being sued in others (it's hard to avoid having a conflict of interest when already working with the seller). There's already a 3% buyer's agent fee baked into the listing, you can either have the agent who showed you the property represent you, which is probably what you should do at this point since they showed you the property and they could claim "procuring cause" (although they may not have actually established procuring cause technically, but that's a different topic, and they probably think they did). If you only want to work with them on this transaction, ask them to change the language in the BAA to reflect that. Or you can write the offer yourself and send it to the listing agent and ask to be unrepresented. This is how going direct to the listing agent can make things messy. Sometimes it works, other times not so much.

Thank you Steve! In my state dual agency is legal. I did ask them to change the agreement to just cover this property and they ignored my emails. I did write the offer myself and got it accepted through email by the seller. The problem is that the broker won't let me sign the buy sell agreement without committing to them for 6 months for all properties in my state.

That seems odd. Was your offer a complete offer (on the state-approved form, including POF/ lender letter)? Was it close to asking price? How was it accepted by the seller, was it just a verbal/ email reply or did they actually sign a contract with you (in order to be binding it would need to be a mutually-executed contract, and with the listing agreement in place would need to go through the listing agent)? This all seems pretty weird. Why not just find a buyer's agent to work with and have them submit your offer to the listing agent on your behalf?

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Chris Dee

OP

Member since 2021 · 28 posts · 12 votes

2y

Thank you @Steve K.

So, I called the head of the local Real Estate Association and he confirmed the sellers broker doesn't have procuring cause because I never signed their agency agreement. So, I did go out and find a buyer agent that I like so far. He has put in an offer on the state approved form and requested a signed affidavit that it was presented to the buyer. Of course, the seller agent didn't tell the truth to the seller and said that I backed out of the pervious agreement. We are negotiating on the price now since the house has sat on the market since my offer without any interest. Will keep you updated how things turn our. I agree with you this was by far the weirdest experience I've had in making offers. I really appreciate everyone's input.

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Karen MargraveBusiness Member

Moderator

Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes

2y

Quote from @Chris Dee:

Hi All,

I contacted the seller agent for a property I found on Zillow. The selling broker sent a buyer agent to show the property. I assumed this was the way they handle dual agency. I made an offer and they verbally got it accepted by seller. When it was time to send me the buy sell agreement they tried to sneak in an Exclusive Buyer Agent agreement that commits us to pay them 3% buyer fee for any house in the state that we buy for 6 months. I was shocked because I repeatedly told them we don't want them as our buyer agents. I said it was fine to be buyer agent on this specific property because we were dealing with a dual agency situation. When I told them we won't pay buyer fee they ignored our emails and never sent docs to sign for the offer that the seller already verbally confirmed. I was emailing directly with the broker and I know this behavior is broker approved and mandated. So, I know what they did is unethical and they are required to submit all offers. However, did they break the law? Also, what should I do from this point forward? I know who the sellers are and can contact them directly?

Thank you much,

Christina

The problem is YOU didn't ask nor confirm what the process would be in such a situation. Rather than ASSUMING, you should have specifically explained what the situation was, that you are a buyer and found a house on Zillow that is one of their listings, and you'd like to go see it, and make an offer. YOU should have had an agreement in writing regarding commissions, and how it would work in such a situation etc. BEFORE going to see the property, or making an offer. At the same time, the agents should have clarified what the process in such a situation would be, what commissions/fees, etc. would be, though they did send you an agreement, and apparently their terms weren't acceptable to you, therefore; they had no obligation to represent you. Yes, you can file a complaint against the real estate agent at the local board, and they may get fined. However; it will do nothing to help you get the deal done

Commissions are negotiable. Buyers have the right to negotiate price. Because of the confusion, and buyers thought they were being taken advantage of, there's recently been cases where large brokerages, and even the NAR have been sued. What's probably going to happen is that buyers will be paying commission for their side in the future, rather than the sellers paying both sides. Currently in most instances, the seller pays commissions that cover the buyers side, and sets pricing accordingly, and thus, commissions are included in overall costs, buyers don't have to add to the amount they come up with for down payment, etc. In the future, the seller may be paying their share of the commission only, meaning buyers will need to add an additional amount of cash they need to bring into the deal.

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Selling agent refuses to submit offer unless I pay them 3% buyer fee

Selling agent refuses to submit offer unless I pay them 3% buyer fee

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