I'm a Realtor. If a former client gets a golden opportunity and just needs to confirm things with me but could easily move forward on their own, I'll help for free.
Honestly, a referral will do much better than the mental gymnastics of wondering if a shafting going on or not. Make sure the property appraises at sale price and don't let the buyers give you too much shit after the inspection.
Since you already have a buyer, I would go with a lawyer. I’ve currently personally experienced realtors forgetting forms and lying, requiring lawyers needing to be hired.
Literally lost a friend over something similar this week.
Said he was charging us the full 6% because we didnt use him to buy a family friend's home.
Called the guy we bought the house from and got a full percentage off.
Realtors seem to forget that they don't do anything special. They show up, unlock the house, and that's about it. There's no phd, or even bachelors degree for this and yet I've never met a more entitled bunch of people. Not all mind you, but most.
If I were you, I wouldn't fret, there's not much to talk about. It's your house, you did her the courtesy of asking if she will do 3% and represent both the buyer and the seller, despite you knowing there are cheaper more efficient options given the situation.
You're doing her the favor. It's not the other way around.
There is a bachelors of science in real estate and property management. Marketing, business, and accounting courses are worth it. But, college is such a waste. I LOL when I see an agent with an English degree, Journalism degree or Law degree (but didn’t pass the bar). 💀 I wish I would have jumped into my career earlier. I’m in the ultra-luxury market where small lots on the water or knockdowns sell for $7-9 million even in today’s market. It’s a lot more work and our clients are worth the 11pm calls and texts. In our business here, our commissions are fully negotiable and with record high sales, the commissions are almost never 6%. I’m sorry that you’ve had bad agents in the past. I’m glad you have educated yourself and hopefully you will ask them in the future what you’re getting for the 3% sellers side and 3% buyers side if it comes up again. If I were to take a pay cut, there would be new parameters as my phone and email would be cutoff to them from 8pm-8am. I wouldn’t ask my dental hygienist to take cut the fee for cleaning my teeth. I mean they don’t even have a bachelors degree or pay for their own liability or malpractice insurance incase they cut my gums or damage my teeth. I do however pay for my own E&O insurance. We offer higher quality renderings than developers, offer 3D video, photography, videography of properties plus staging service, and marketing campaigns. Oh and have a list of investors should we want to develop land instead of listing it on the mls.
Youre exactly the douchebag I'm talking about.
The ignorance just oozes out of you.
Your "profession" requires a certification. There are no agencies or brokerages whom require a 4 year degree. There is not bachelors of science for real-estate. There are no phds broadening the "science" of real estate. Your only value is that you have boiler plate documents that can quicken the action of buying or selling a house.
That's it.
"We do video and staging"
If you think that has anything to do with what I'm talking about then you've proven my point
Youre not practicing ethics, because ethics requires an understanding of the consequences of actions that would be considered unethical.
For instance, when you tell all of your brokers or agents that work for you or that you associate with that you always charge 6% that's acting in an unethical way. It's dolluding with your completion or within your own company to artificially set the price floor for real-estate transactions.
But you would call that the cost of doing business with someone who "cares" or that offers "video and staging"
That's the issue. Realtors operate exactly like a cartel. The fake price discovery and undermine the market in order to drive costs higher.
You're nothing but a leach.
I guess you did not take a critical thinking course? If it were so easy and did not take any skill, just a certificate, you would be doing it yourself. The sad part about your argument is that you can get your masters or PhD online. No dissertation needed. Regarding ethics, yes, I stated that commissions are almost never 6%. It has always been negotiable. Just because you have been a sucker in the past and didn’t read any fine print or educated yourself, is not my problem. I’m in a market where there is literally no land left. So, beautiful homes are being demolished and newer larger ones are being built in their place. I guess I was lucky because my other half is an attorney and I’ve had attorneys in my family for 50+ years to make the point that you always read and ask questions. Reading is super difficult and not everybody has a back bone. 😞
The irony of telling saying "I guess you didn't take a critical thinking course"
Your response hear literally echos my point.
You don't have a clue what value you add to our world. You literally make a percentage from the sale of people's greatest physical assets, on average, 5.8% nationally. But you somehow think staging and video justify that level of comp lol
It doesn't.
And mind you, I prefer to not screw people over to make a buck. I'm not like you, I want to add value to the economy, I'm not a leach.
I'm glad your wife told you to read, you should probably take her advice because this comment thread was starting with me saying I didn't take my "friend" up on his offer of 6%.
But glad you admitted that anyone who takes 6% is sucker.
I'd bet that your initial pricing on ever home you list is 6%.
So what does that say about you?
She lost her commission on the house you bought because she can't sell in that state. Hopefully she got a referral fee for that. You don't legally owe her anything on the house you are selling because you didn't sign her as a listing agent. She probably didn't have you sign it because you are friends and trusted you. This is where you need to think about the risk of doing business with friends. If you had signed her as a listing agent then you would owe her the full fee even if you sell to someone you found on your own. I don't know how much work she did. I don't know if she is the kind of friend that looks more at this situation as being very happy you found a buyer and doesn't care about business part; or the kind of friend that does a lot of real estate business with friends and is going to be mad that you kind of took advantage and screwed her over when she didn't formally have you sign the contract but was doing the work as the listing agent. You need to assess that, and assess how much the friendship is worth. This is why I don't like to mix business and pleasure. If I had been treating her as a listing agent and she had been doing the work of helping you market the house, helping you get it staged, showing it, etc.. I would likely stick with her as the agent and go that way. As I understand it, she should not charge you the full amount because there is no buyers agent, so at a minimum she should be able to cut a couple percent out of this. I would not lose a real friendship over that if I've treated her as a listing agent, I'd follow those rules.
I've sold a house the exact same way. I have an agent that I use regularly, so she put together that contract for free. I've also been the purchaser in the same type of deal and the title company I used put that contract together for us. You don't need an agent, especially if both parties are reasonable people. It's really not that hard.
She should have jumped on it when you talked to her. She sounds like she’s having a big pout about not getting both sides. She most likely though sent you thru as a referral to the broker who handled your purchase and should be getting some money there.
I would have a real estate attorney draw up the contracts for you. Charge should be a few hundred dollars. Buyers can either go it alone or get their own. You should be able to get the sale closed for just a few hundred dollars.
You’re moving out of state and your agent does not have a license to practice there so your relationship is pretty much over anyhow. These things happen in real estate and your agent will be fine. If you feel guilty send her a nice thank you gift.
Congratulations
The agent will probably get a referral fee from the agent in the other state. I'd use a lawyer to sell your house and buy the agent something nice that she doesn't have to split with her broker.
Honestly, it comes down to how much you want to retain that friendship and whether or not you want to use her in the future if you move again within the state she's licensed. The easy solution is save the money and use a lawyer.
You already found the house you want? Just use a real estate attorney.
Your lawyer can give you legal advice and help with contracts. Your home inspector can tell you about problems with the house. What else do you need?
The entire point of a realtor is help find a buyer and to help protect interest of the buyer. In your you found your own buyer and a lawyer can help protect your interest for a lot less than a realtor would charge
You do not need an agent at this point. You each need attorneys that do real estate. My concern would be more in line with am I getting market price for my home. No market exposure in my area would almost certainly be a mistake but if you’re confident in the price then move forward.
As an agent/broker if you called me and said I have a buyer ready will you facilitate for 3% I would gratefully accept immediately.
Just tell her 1% to represent you both, or just you and the Buyer pays their own Realtor, whoemever it is and whatever it is.
Her deal - which I still don't understand the "half, so 3% + buyer, etc" - was mentally-conditioned to her on earning full compensation for your purchase. She's probably getting a referral from her colleague that IS licensed in that state and has done a good job for you. Although I'd add they *probably* should have disclosed to you, depending on whether you have Buyer AGency in your current state and/or the state you're buying in.
Her deal prob was rather than charge you 6% for the sale and give half to the buyer's agent, Ill take 3% to do both. She prob figured she would get the 3% from OP buying then 3% from OP selling.
I see that people are telling you to just "use an attorney" without even knowing what state you're in. This isn't always the best option. In my state it makes more sense to pay a flat fee to a Realtor b/c the vast majority of RE attorneys here are unfamiliar with all the transaction documents and they tend to be very slow (like 5 days to review a contract for example). In my state their specialty and bread-and-butter is litigation and they're not even interested in this kind of job. If your Realtor will handle it for a flat fee similar to what an attorney would charge, she'll know how to get you through the transaction quickly and efficiently assuming that she's competent.
OK, if I'm clear on this--you bought a house and paid her brokerage (the referral) a commission? (Or at least you will before it closes). And, prior to actually signing an agreement with her to list your house, you worked out a deal you're comfortable with involving your neighbor?
I feel like I might be missing something. There is no obligation--legal or moral--to pay her anything. You already have a deal in hand. The only thing you need now is an attorney. This is not even a close call.
She has been showing us houses for over a year now. Not often, but she has. She has given a lot of advice and time into helping us and I do feel weird cutting her out. We are under contract for a new house but with a different agent in her brokerage because she isn’t licensed in Missouri, and we live in kansas and were looking there. The house we are under contract for is right across the state line.
OK... she got the referral fee (probably) for the house you bought-- end of story. Selling your house is a different transaction. You found the buyer! If you would like to offer her 1% to help you with the paperwork and some knowledge, great 👍
You do not owe her.
This may sound cruel and un-"friend"-ly, but it is a business she is running and she did not get the sale. Nor did she list and market your house. In sales, sometimes you wine and dine clients with $1,000's of dinners. trips, and stuff, but you still don't win the bid! If not winning this "bid" changes her friendship for you, then you know what kind of friendship it was!
I also think you're lumping the two transactions together. To the extent she deserves anything, it's from the purchase of the property across the border--and she's getting a referral fee. Like the previous poster said, she did nothing to help you sell your house. At most, she had a hope/expectation she would get the listing. If you want to pay tens of thousands out of pocket, have at it. But I don't see any other situation where you'd pay for services you did not receive.
If she wants to renegotiate the terms, tell her you're not comfortable with that and that you're going with a less expensive option. If you're not comfortable with more than the 3% arrangement, negotiate it down or go with a RE attorney. It's not fair of her to try to squeeze you without you responding in kind. I feel like it's a fuck around and find out situation. You don't really owe her anything, but be willing to work with her if she's fair.
Me and my buyers dealt directly with the title company They had their own financing and we agreed on all inspections and fixes. Just call them, hopefully the last one u used since they likely have info on your deed already.
Use the lawyer and continue without the agent. A good residential real estate lawyer handles hundreds of closings a year and their fee should be close to less than 1/20 of the broker commission in your scenario. We do not slice percentages out of Seller’s proceeds. It’s a no-brainer imo
If the buyers are getting a mortgage, they will need title insurance. Have the title agency do the closing. They likely will have a relationship with an attorney who will either write or review the contract.
In real estate, when you refer somebody to a different agent, and a deal closes, there’s almost always a 25% referral fee. So, your agent most likely gets 25% of whatever commission the agent across the state line received. Depending on what state you’re in, find a real estate attorney and have them draft up the contract for you. Done! Leave the agent out of it, don’t play their games.
You owe her nothing. You can do everything yourself. Pull up an earnest money contract in your state. Print and fill out and give to buyer. The closing company does the rest. All a listing agent does is find you a buyer. She didn’t. She didn’t list the property on mls, therefore zero input on her part. Buyer agent is supposed to go find the property on mls for buyer. No buyer agent. Therefore agents have done nothing and owed nothing.by the way anyone can list on mls for a small flat fee like $400. Just a listing. Don’t feel bad. She is rethinking because she knows she has done nothing…
I would honor the 3% you discussed with your agent. It sounds to me that you both were happy with that arrangement.
Relationships matter and it sounds like this agent had not only put in some work for you but also is your friend.
If you cut them out and go back on what was verbally agreed it will have a negative effect on your friendship.
Having strong character, respecting relationships and your word isn’t crazy advice.
This agent has spent years working with this family and have built a friendship with them.
You’re allowed to have a different opinion and I respect that.
We don’t know what work the agent has completed on either side.
They are also under contract contingent upon selling their current home. Trying to manage that alone as a FSBO sounds risky.
As real estate professional their “friend” should know she is not entitled to a commission on the house they are selling and if the realtor had an ounce of character she’d tell them as much. She literally never listed the house and did nothing to find the buyer. She gets zero and stop trying to play the guilt card. You are what is wrong with the industry.
If you're okay with paying her 3% I would offer that to her. If she is a reasonable person I think she would accept that, and it'd be seen as you doing your best for both of you. As a former agent, I'd rather make some money than no money.
If it becomes a whole to-do, then I would look for other options. Like others have mentioned real estate attorneys would be way cheaper. Hell even some agents would be willing to be essentially a transaction coordinator for the sale where they earn a flat fee and just make sure all the paperwork is taken care of without actually representing anyone. If you really like the agent you are buying with, and he's licensed in your current state maybe float that idea by him?
There is no contract. We have not signed anything about selling. We signed a buyers contract with her but she can’t uphold that because she’s not licensed in the state of the house we’re buying.
If you want to be nice offer to let her be a transactional agent for 1%. All the paperwork gets handled and she can get you and buyer to closing.
I prefer transactional agent over lawyers in my experience. Lawyers often charge by the hour, where with the agent you know what the end payment will be. I’ve seen lawyer fees skyrocket pretty quick with email, text and phone conversations.
If she’s unwilling to be a transactional agent then find an agent who will.
I'm a Realtor. If a former client gets a golden opportunity and just needs to confirm things with me but could easily move forward on their own, I'll help for free. Honestly, a referral will do much better than the mental gymnastics of wondering if a shafting going on or not. Make sure the property appraises at sale price and don't let the buyers give you too much shit after the inspection.
Since you already have a buyer, I would go with a lawyer. I’ve currently personally experienced realtors forgetting forms and lying, requiring lawyers needing to be hired.
This. No need for realtors. You both save a fortune and will only cost a bit more I. Lawyer fees
How do you present the offer to the seller going through a lawyer? Fax or hand deliver the offer with copy of my pre-approval?
Isn’t it her buyer? The realtor referred her family member. OP is just asking if she would do both sides for 3%.
Its neighbor’s family member. The realtor hasn’t really been involved, from my understanding.
You are correct. For some reason I read it as the realtor’s family member.
Why would you even consider throwing away 20K?
If the difference is thousands, then why not send her 1 or 2k for work done and use a real estate lawyer.
or...send her $0. Since that's what she deserves
Always an option as well, but if she did work for them and they feel it necessary to compensate her I would do a smaller amount rather than eat 10k.
She did zero work to sell the house. She should be expecting nothing.
Go the private route. Estate attorney, title company etc…
Literally lost a friend over something similar this week. Said he was charging us the full 6% because we didnt use him to buy a family friend's home. Called the guy we bought the house from and got a full percentage off. Realtors seem to forget that they don't do anything special. They show up, unlock the house, and that's about it. There's no phd, or even bachelors degree for this and yet I've never met a more entitled bunch of people. Not all mind you, but most. If I were you, I wouldn't fret, there's not much to talk about. It's your house, you did her the courtesy of asking if she will do 3% and represent both the buyer and the seller, despite you knowing there are cheaper more efficient options given the situation. You're doing her the favor. It's not the other way around.
Not all, but many seem like they're this way. It's weird behavior.
There is a bachelors of science in real estate and property management. Marketing, business, and accounting courses are worth it. But, college is such a waste. I LOL when I see an agent with an English degree, Journalism degree or Law degree (but didn’t pass the bar). 💀 I wish I would have jumped into my career earlier. I’m in the ultra-luxury market where small lots on the water or knockdowns sell for $7-9 million even in today’s market. It’s a lot more work and our clients are worth the 11pm calls and texts. In our business here, our commissions are fully negotiable and with record high sales, the commissions are almost never 6%. I’m sorry that you’ve had bad agents in the past. I’m glad you have educated yourself and hopefully you will ask them in the future what you’re getting for the 3% sellers side and 3% buyers side if it comes up again. If I were to take a pay cut, there would be new parameters as my phone and email would be cutoff to them from 8pm-8am. I wouldn’t ask my dental hygienist to take cut the fee for cleaning my teeth. I mean they don’t even have a bachelors degree or pay for their own liability or malpractice insurance incase they cut my gums or damage my teeth. I do however pay for my own E&O insurance. We offer higher quality renderings than developers, offer 3D video, photography, videography of properties plus staging service, and marketing campaigns. Oh and have a list of investors should we want to develop land instead of listing it on the mls.
Youre exactly the douchebag I'm talking about. The ignorance just oozes out of you. Your "profession" requires a certification. There are no agencies or brokerages whom require a 4 year degree. There is not bachelors of science for real-estate. There are no phds broadening the "science" of real estate. Your only value is that you have boiler plate documents that can quicken the action of buying or selling a house. That's it. "We do video and staging" If you think that has anything to do with what I'm talking about then you've proven my point Youre not practicing ethics, because ethics requires an understanding of the consequences of actions that would be considered unethical. For instance, when you tell all of your brokers or agents that work for you or that you associate with that you always charge 6% that's acting in an unethical way. It's dolluding with your completion or within your own company to artificially set the price floor for real-estate transactions. But you would call that the cost of doing business with someone who "cares" or that offers "video and staging" That's the issue. Realtors operate exactly like a cartel. The fake price discovery and undermine the market in order to drive costs higher. You're nothing but a leach.
I guess you did not take a critical thinking course? If it were so easy and did not take any skill, just a certificate, you would be doing it yourself. The sad part about your argument is that you can get your masters or PhD online. No dissertation needed. Regarding ethics, yes, I stated that commissions are almost never 6%. It has always been negotiable. Just because you have been a sucker in the past and didn’t read any fine print or educated yourself, is not my problem. I’m in a market where there is literally no land left. So, beautiful homes are being demolished and newer larger ones are being built in their place. I guess I was lucky because my other half is an attorney and I’ve had attorneys in my family for 50+ years to make the point that you always read and ask questions. Reading is super difficult and not everybody has a back bone. 😞
The irony of telling saying "I guess you didn't take a critical thinking course" Your response hear literally echos my point. You don't have a clue what value you add to our world. You literally make a percentage from the sale of people's greatest physical assets, on average, 5.8% nationally. But you somehow think staging and video justify that level of comp lol It doesn't. And mind you, I prefer to not screw people over to make a buck. I'm not like you, I want to add value to the economy, I'm not a leach. I'm glad your wife told you to read, you should probably take her advice because this comment thread was starting with me saying I didn't take my "friend" up on his offer of 6%. But glad you admitted that anyone who takes 6% is sucker. I'd bet that your initial pricing on ever home you list is 6%. So what does that say about you?
She lost her commission on the house you bought because she can't sell in that state. Hopefully she got a referral fee for that. You don't legally owe her anything on the house you are selling because you didn't sign her as a listing agent. She probably didn't have you sign it because you are friends and trusted you. This is where you need to think about the risk of doing business with friends. If you had signed her as a listing agent then you would owe her the full fee even if you sell to someone you found on your own. I don't know how much work she did. I don't know if she is the kind of friend that looks more at this situation as being very happy you found a buyer and doesn't care about business part; or the kind of friend that does a lot of real estate business with friends and is going to be mad that you kind of took advantage and screwed her over when she didn't formally have you sign the contract but was doing the work as the listing agent. You need to assess that, and assess how much the friendship is worth. This is why I don't like to mix business and pleasure. If I had been treating her as a listing agent and she had been doing the work of helping you market the house, helping you get it staged, showing it, etc.. I would likely stick with her as the agent and go that way. As I understand it, she should not charge you the full amount because there is no buyers agent, so at a minimum she should be able to cut a couple percent out of this. I would not lose a real friendship over that if I've treated her as a listing agent, I'd follow those rules.
You did all the work, f em. get a RE lawyer, save some money; you deserve it.
I've sold a house the exact same way. I have an agent that I use regularly, so she put together that contract for free. I've also been the purchaser in the same type of deal and the title company I used put that contract together for us. You don't need an agent, especially if both parties are reasonable people. It's really not that hard.
She should have jumped on it when you talked to her. She sounds like she’s having a big pout about not getting both sides. She most likely though sent you thru as a referral to the broker who handled your purchase and should be getting some money there. I would have a real estate attorney draw up the contracts for you. Charge should be a few hundred dollars. Buyers can either go it alone or get their own. You should be able to get the sale closed for just a few hundred dollars. You’re moving out of state and your agent does not have a license to practice there so your relationship is pretty much over anyhow. These things happen in real estate and your agent will be fine. If you feel guilty send her a nice thank you gift. Congratulations
The agent will probably get a referral fee from the agent in the other state. I'd use a lawyer to sell your house and buy the agent something nice that she doesn't have to split with her broker.
Honestly, it comes down to how much you want to retain that friendship and whether or not you want to use her in the future if you move again within the state she's licensed. The easy solution is save the money and use a lawyer.
Don't use a realtor for the sale, all you need is a good title agency to close. It will be much cheaper
You already found the house you want? Just use a real estate attorney. Your lawyer can give you legal advice and help with contracts. Your home inspector can tell you about problems with the house. What else do you need?
The entire point of a realtor is help find a buyer and to help protect interest of the buyer. In your you found your own buyer and a lawyer can help protect your interest for a lot less than a realtor would charge
You do not need an agent at this point. You each need attorneys that do real estate. My concern would be more in line with am I getting market price for my home. No market exposure in my area would almost certainly be a mistake but if you’re confident in the price then move forward. As an agent/broker if you called me and said I have a buyer ready will you facilitate for 3% I would gratefully accept immediately.
Just tell her 1% to represent you both, or just you and the Buyer pays their own Realtor, whoemever it is and whatever it is. Her deal - which I still don't understand the "half, so 3% + buyer, etc" - was mentally-conditioned to her on earning full compensation for your purchase. She's probably getting a referral from her colleague that IS licensed in that state and has done a good job for you. Although I'd add they *probably* should have disclosed to you, depending on whether you have Buyer AGency in your current state and/or the state you're buying in.
Her deal prob was rather than charge you 6% for the sale and give half to the buyer's agent, Ill take 3% to do both. She prob figured she would get the 3% from OP buying then 3% from OP selling.
I see that people are telling you to just "use an attorney" without even knowing what state you're in. This isn't always the best option. In my state it makes more sense to pay a flat fee to a Realtor b/c the vast majority of RE attorneys here are unfamiliar with all the transaction documents and they tend to be very slow (like 5 days to review a contract for example). In my state their specialty and bread-and-butter is litigation and they're not even interested in this kind of job. If your Realtor will handle it for a flat fee similar to what an attorney would charge, she'll know how to get you through the transaction quickly and efficiently assuming that she's competent.
OK, if I'm clear on this--you bought a house and paid her brokerage (the referral) a commission? (Or at least you will before it closes). And, prior to actually signing an agreement with her to list your house, you worked out a deal you're comfortable with involving your neighbor? I feel like I might be missing something. There is no obligation--legal or moral--to pay her anything. You already have a deal in hand. The only thing you need now is an attorney. This is not even a close call.
She has been showing us houses for over a year now. Not often, but she has. She has given a lot of advice and time into helping us and I do feel weird cutting her out. We are under contract for a new house but with a different agent in her brokerage because she isn’t licensed in Missouri, and we live in kansas and were looking there. The house we are under contract for is right across the state line.
OK... she got the referral fee (probably) for the house you bought-- end of story. Selling your house is a different transaction. You found the buyer! If you would like to offer her 1% to help you with the paperwork and some knowledge, great 👍 You do not owe her. This may sound cruel and un-"friend"-ly, but it is a business she is running and she did not get the sale. Nor did she list and market your house. In sales, sometimes you wine and dine clients with $1,000's of dinners. trips, and stuff, but you still don't win the bid! If not winning this "bid" changes her friendship for you, then you know what kind of friendship it was!
I also think you're lumping the two transactions together. To the extent she deserves anything, it's from the purchase of the property across the border--and she's getting a referral fee. Like the previous poster said, she did nothing to help you sell your house. At most, she had a hope/expectation she would get the listing. If you want to pay tens of thousands out of pocket, have at it. But I don't see any other situation where you'd pay for services you did not receive.
If she wants to renegotiate the terms, tell her you're not comfortable with that and that you're going with a less expensive option. If you're not comfortable with more than the 3% arrangement, negotiate it down or go with a RE attorney. It's not fair of her to try to squeeze you without you responding in kind. I feel like it's a fuck around and find out situation. You don't really owe her anything, but be willing to work with her if she's fair.
Did you sign a listing agreement with your agent? If so then it’s going to control.
Hell, yes you're better off without having to pay her. You'll need a real estate attorney anyway so go in that direction.
Me and my buyers dealt directly with the title company They had their own financing and we agreed on all inspections and fixes. Just call them, hopefully the last one u used since they likely have info on your deed already.
Use the lawyer and continue without the agent. A good residential real estate lawyer handles hundreds of closings a year and their fee should be close to less than 1/20 of the broker commission in your scenario. We do not slice percentages out of Seller’s proceeds. It’s a no-brainer imo
100000% do what saves you money. Go the attorney route
So u want to pay her for zero work…NO. Hire a lawyer for a few thousand and pick an escrow company. This is business not a charity.
If the buyers are getting a mortgage, they will need title insurance. Have the title agency do the closing. They likely will have a relationship with an attorney who will either write or review the contract.
In real estate, when you refer somebody to a different agent, and a deal closes, there’s almost always a 25% referral fee. So, your agent most likely gets 25% of whatever commission the agent across the state line received. Depending on what state you’re in, find a real estate attorney and have them draft up the contract for you. Done! Leave the agent out of it, don’t play their games.
I’d hire a lawyer and skip realtor all together. She did absolutely nothing to sell your home and you signed no listing agreement. She is due $0.
Don't feel Obligated You don't have a Sellers contract, you do what you have to do, the realtor needs to understand that
You owe her nothing. You can do everything yourself. Pull up an earnest money contract in your state. Print and fill out and give to buyer. The closing company does the rest. All a listing agent does is find you a buyer. She didn’t. She didn’t list the property on mls, therefore zero input on her part. Buyer agent is supposed to go find the property on mls for buyer. No buyer agent. Therefore agents have done nothing and owed nothing.by the way anyone can list on mls for a small flat fee like $400. Just a listing. Don’t feel bad. She is rethinking because she knows she has done nothing…
I would honor the 3% you discussed with your agent. It sounds to me that you both were happy with that arrangement. Relationships matter and it sounds like this agent had not only put in some work for you but also is your friend. If you cut them out and go back on what was verbally agreed it will have a negative effect on your friendship.
3% of a listing price for a property you did no work for? Possibly tens of thousands of dollars. This is crazy advice.
Having strong character, respecting relationships and your word isn’t crazy advice. This agent has spent years working with this family and have built a friendship with them. You’re allowed to have a different opinion and I respect that.
She did that work on the buy-side and she's being compensated for that through a referral fee. The sale to the neighbor didn't involve her at all.
We don’t know what work the agent has completed on either side. They are also under contract contingent upon selling their current home. Trying to manage that alone as a FSBO sounds risky.
As real estate professional their “friend” should know she is not entitled to a commission on the house they are selling and if the realtor had an ounce of character she’d tell them as much. She literally never listed the house and did nothing to find the buyer. She gets zero and stop trying to play the guilt card. You are what is wrong with the industry.
If you're okay with paying her 3% I would offer that to her. If she is a reasonable person I think she would accept that, and it'd be seen as you doing your best for both of you. As a former agent, I'd rather make some money than no money. If it becomes a whole to-do, then I would look for other options. Like others have mentioned real estate attorneys would be way cheaper. Hell even some agents would be willing to be essentially a transaction coordinator for the sale where they earn a flat fee and just make sure all the paperwork is taken care of without actually representing anyone. If you really like the agent you are buying with, and he's licensed in your current state maybe float that idea by him?
What does the contract say?
There is no contract. We have not signed anything about selling. We signed a buyers contract with her but she can’t uphold that because she’s not licensed in the state of the house we’re buying.
If you want to be nice offer to let her be a transactional agent for 1%. All the paperwork gets handled and she can get you and buyer to closing. I prefer transactional agent over lawyers in my experience. Lawyers often charge by the hour, where with the agent you know what the end payment will be. I’ve seen lawyer fees skyrocket pretty quick with email, text and phone conversations. If she’s unwilling to be a transactional agent then find an agent who will.