Negotiating Commision with Agent Who Is Broker + Dual Agent

11 Replies

For SFH transactions, when not using a buyers agent and using the listing agent as dual-agent who also happens to be the broker the agent is getting the full commission of the sale. They would be sharing it with a listing agent if there was one, so I am wondering if they are willing to give a portion of their commission back to the seller. If so, how does this happen (i.e., check at closing, check at some other point in time, etc.)?

It may be different in Pennsylvania, but in Florida an agent has the ability to share commission with the party they represent. However, if this is an MLS deal then there is a broker listing agreement that already set the agreed upon commission, that is to be gained by the broker(s) that put the deal together. Usually that would be split between the two brokers in the transaction but in this case it is just the one (therefore the agreement would be for the broker to keep the entire commission). As a newer agent, I'm not sure whether that can be altered with an addendum like so much else can be, but I suspect not without relisting the property?

It varies state to state.

You can negotiate their commission down, put it in the offer that it's a dual agency and the new commission is X.


Personally, I would figure out the best way to reduce my net cash required. Sometimes that’s dropping the sale price rather than agents commission. Play around it your options. 

@Kenny Dahill Thanks for the response.  In this case the contract has already been signed by both parties.  Could I just ask the realtor to cut me a check as a professional courtesy for 50% of what he would have to give away to a seller's agent.   This way he is still making more than if I had a seller's agent and I'm saving a little bit on the cost.   I don't think I signed a dual agent form, so I could still bring a listing agent in to see it through to closing and he would lose half of it if that happened.

@William Coet , I don’t think it’s that easy.  You might have Implied Representation by now.  

Also, I don’t think it’s legal for realtors to pay you cash during or after the deal from this transaction, you can try but I wouldn’t hold my breath.


I didn’t fully graph your OP but just because it’s a Broker/Agent doesn’t necessarily mean they’re negotiate the “Broker share. They could allocate “Broker” share to general business expenses and not necessarily more income for them.

You have a contract with the seller to purchase the property. 

If there is no dual agency....you are simply not represented. That was your choice not to hire representation. What the listing agent is making is between them and their client the seller. It is of no concern of yours.

Originally posted by @Russell Brazil :

You have a contract with the seller to purchase the property. 

If there is no dual agency....you are simply not represented. That was your choice not to hire representation. What the listing agent is making is between them and their client the seller. It is of no concern of yours.

Thanks, point taken.   In this case the seller is Fannie Mae.  Just wondering, do they adjust their payment to listing agent if there is no buyer's agent?

 

Originally posted by @Russell Brazil :

@William Coet

Then I know there is no dual agency as Fannie Mae doesnt allow dual agency. So you definitely are just unrepresented.

Does this mean the selling agent/broker gets the same regardless of if there is a buyer's agent?

 

The only person that can negotiate commission is the agents themselves, given that you're unrepresented in these situations, you are not at liberty, and the other agent has no incentive to negotiate any of those fees back to the seller. 

In the future, you can ask the agent to negotiate their commission if you're unrepresented before the offer is written, let them know that if they don't reduce it, you'd rather have your own buyer's agent, which their office could provide you as designated agent if you don't have one of your own. Once contract is accepted, however, commissions are set, and with HUD foreclosures, it's my understanding that those have already been stated in the initial bid and confirmed if you've already signed the contract. If you're happy with the deal, I would not be upsetting things over a commission that's already set. In the future, if you're giving up representation, find out before you write the offer if you're getting any benefit from it like a legal rebate or reduced commission so better seller net. If there's no benefit to you not having representation, find a good buyer's agent to assist you. In Virginia, you would have had to sign a disclosure stating you are aware you're an unrepresented party and that agent represents the seller before that agent could write an offer for you, so if that is required in your state and it wasn't done, you may want to look into it as it's a serious omission.

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