Oct 14, 2017
4:45:21pm
Danakerman Walk-on
RE: Realtors have such a racket going. Will be glad to see it get disrupted.
The OP has so much incorrect about this interaction, it’s difficult to know where to begin.

Firstly, I obviously wasn’t there and don’t know what that showing agent showed him, but it’s important to note that in pretty much every state, an agent is REQUIRED BY LAW to present you with an Agency Disclosure form that states who they represent. Consumers often have a poor understanding of agency and these laws are in place for consumer protection. The agent or broker is required to present the form, have it signed (or state you refused to sign), and keep it on file for 10 years in case of audit by the pertinent state authority. Penalties for not having the correct disclosure on file can be steep. Most likely, THIS is the form that the OP was presented. It’s not a racket. It’s required by law.

Secondly, the Agency Disclosure has nothing to do with the commission paid by anyone, and it’s highly unlikely that anything the OP was presented would have effected the commission in any way whatsoever.

Commission would have been negotiated by the seller and the listing agent as part of the Exclusive Agreement, and is CONTRACTUAL. Nothing the buyer does has any effect on the commission due by the seller because the buyer is not a party to that contract. Whether the buyer has an agent or not, the Seller would still be obligated to pay the full commission laid out in his listing contract. The only difference is that a “direct buyer” (no buyers agent) means the listing agent gets to keep more of the commission because there is no agent on the other side to split the commission with.

This doesn’t really get the buyer any additional leverage for a reduced price. The seller has to pay the full commission in their contract regardless, and the listing agent is REQUIRED BY LAW to represent the seller’s best interests and get the seller the highest price possible. Therefore, any agent pushing his seller to take a lower price simply because the agent wants to close the deal and sees an additional 3% of leeway would be VIOLATING THEIR FIDUCIARY DUTY to their client.

The showing agent would be compensated regardless of what the buyer signed because he’s paid by the listing agent out of a portion of the overall commission.
Danakerman
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Danakerman
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