Realtor’s commission in seller financed deals

3 Replies

Here’s the situation. We found several small multi family buildings (2 triplexes and a duplex) on the MLS. The buyers agent we’ve done multiple deals with in the past showed us the all the buildings. Then we learned who the owner is (he owns all 3). I phoned him and proposed a seller financed deal on all three buildings. He is very open to it but says he won’t pay the agents commission. I don’t want to pay any commission either but I don’t want to just drop our agent and burn any bridges. He’s been great to work with (4 other deals so far). Plus this is a smal community and I don’t want to damage my reputation. So far the work he’s done has only been to show the units. I am looking for advice on what to do. I’m fine with paying him for the time he spent helping us look at the units. Couple hours max. He hasn’t written the offer yet. I’ve never done a seller financed deal before but I am assuming that I coIld just have the attorney draft the contract. I am looking for advice for my situation. Has anyone ever dealt with this before? What should I do. Before the seller told me he wouldn’t pay the commission, I had asked our realtor if he could write the offer but he hasn’t done anything yet.

If the property was listed on MLS the seller probably signed a contract to pay commission and may not be able to get out of it. If you wanted to be fair to the agent you probably shouldn't have directly contacted an owner for a property listed on MLS.

I have heard of the agent getting just the 'showing agents' half of the commision in this case, and not the 'listing agents" half. It sounds like your agent is NOT the listing agent?

Dan Dietz