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I can't believe an agent did this! Have I been in a bubble for the last 20 years?

By
Services for Real Estate Pros with Berkshire Hathaway Home Services Ambassador

I received a call from an agent yesterday who said that he had a contract written on one of my listings but there was one thing preventing him from giving it to me...

He wanted a bigger split in commission!

The property is being offered at a 'top of the scale' commission already, with what our normal co-broker split is, the same as it has during my entire 20+ year career. This is the first time I've ever had an agent be so bold as to demand a bigger split before submitting an offer.

I admit I was caught off guard. I told him it was company policy and not my decision but would look forward to his offer and looked forward to working with him.

So far, no offer, and no returned call. So now I'm wondering two things; 1) Did I harm my seller in not rolling over with his selfish request? and 2) Was there an offer at all?

How will the conversation with his buyer go? "Sorry, Mr Buyer, but the agent won't pay me a larger commission so we'll go look for another house."

I don't believe I could sleep at night after making demands such as this on the agents that I normally do business with year in and year out.

 

 

Comments (12)

For Buyers Only Realty
FOR BUYERS ONLY REALTY - Saint Augustine, FL
Sharon Stevens & Dwight Cole

Wow... that blows me away.  I hope he wasnt unethical enought to tell the buyer that the offer was rejected so the buyer will buy something else that gives him a larger commission.

I would keep an eye on this agent. 

It is sad when there are unscrupulous agents out there.. they give us all a bad reputation.

Apr 22, 2010 03:33 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

I am thinking that there may be a RESPA violation there.  Crazy stuff that's for sure!

Apr 22, 2010 03:37 AM
Katherine Fornale
REMAX REALTY 9 - Howell, NJ
SFR, GRI

Maybe he was the buyer!

Apr 22, 2010 03:44 AM
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

We should all work by the book...

Apr 22, 2010 03:52 AM
Darla Maddalone
Bend Oregon Homes Online-Principal Broker, SFR, CSP - Bend, OR

Hi Bill,

You handled it correctly.  The bigger question is, is he representing his Buyer and performing his fiduciary responsibilities as required?

Katherine in #3 may have it right...is he the buyer???

 

Apr 22, 2010 04:46 AM
Not In Real Estate Any Longer
Autaugaville, AL

I know in Canada we have rules and regulations to prevent such behaviour. That agent is not working on his buyer's behalf, but working for his own pocketbook. While I can see why you would be concerned about working for your sellers, you stated the commission split and it is negotiable for CLIENTS, not for other agents. The commission should have no bearing on whether he brings in an offer or not.

I'd report the slimeball to the powers that be in your area. A REALTOR's reputation is already on a slippery slope - we don't need guys like that working in the industry.

 

Apr 22, 2010 05:02 AM
Paige Walker
Paige Walker - Pineville, LA
Real Estate Guru - Alexandria Pineville LA

Without getting into any violations on discussing any commissions.... When the buyers agent showed the property he agreed to the commission offered through the MLS - therefore a contract on the commission was formed. If he really wrote an offer he is suppose to deliver to the listing agent directly.

Bill, you didn't do anything wrong. I believe your answer was very good. And I don't know who the other agent is, but I'm glad he doesn't work in our area.

What he did was wrong on many levels!!

Apr 22, 2010 07:00 AM
Paige Walker
Paige Walker - Pineville, LA
Real Estate Guru - Alexandria Pineville LA

Without getting into any violations on discussing any commissions.... When the buyers agent showed the property he agreed to the commission offered through the MLS - therefore a contract on the commission was formed. If he really wrote an offer he is suppose to deliver to the listing agent directly.

Bill, you didn't do anything wrong. I believe your answer was very good. And I don't know who the other agent is, but I'm glad he doesn't work in our area.

What he did was wrong on many levels!!

Apr 22, 2010 07:02 AM
Bill Swanson
Berkshire Hathaway Home Services Ambassador - Omaha, NE

Update; He was not the buyer, the offer came in a few minutes ago, with no further mention of commission... Hmmm...

Apr 22, 2010 08:59 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Bill --- glad to hear you received the offer. Hope it's a good one.

We've received similar requests before --- and in writing --- where they submit their own commission agreement, along with the offer. We tell them we'll consider it, but more often than not, we say no, especially if the commission we offer is a good one.

Good luck!

Apr 22, 2010 12:33 PM
Robert Rauf
CMG Home Loans - Toms River, NJ

Glad to hear you got an offer, perhaps he spoke to his broker and realized how wrong he was?

Apr 23, 2010 03:07 AM
Glenn Roberts
Retired - Seattle, WA

Glad to hear you got the offer. Now you know the kind of agent he is and that will follow him for a long time. Good job handling it correctly.

Apr 23, 2010 03:52 AM