Back when our market was hot in Northern Virginia I had a couple of agents present contracts asking for a "bonus" over the commission offered in the MLS. It should have surprised me but it didn't.
The commission is an agreement between brokerages and if the buyer's agent feels what is being offered in the MLS is not appropriate compensation then the time to bring it up is before you show the property not when you present a contract.
Stated Commission Does Not Belong in the Offer to Purchase or Sales Contract
I am of the opinion that unless otherwise noted in an agreement between buyers, sellers and their agents, the sales commission is between the seller, the listing agent and the selling agent (if different from the listing agent). Therefore, the I think it is tacky to include the following statement in an offer to purchase:
Seller to pay selling agent commission of XX% of sales price OR
Seller to pay selling agent $XX.XX.
Whenever I see this on an offer to purchase, the following questions immediately pops into my head:
- "okay, if the buyer really wants this house, will s/he reject the seller's counter because the seller is not willing to pay $xx.xx?
- did the buyer really ask the his/her agent to include that or did the buyer's agent say to the buyer, we should include that the seller is to pay $xx.xx to the buyer's agents or selling agent (if different from the listing agent?
- If the seller does not agree to the commission as outlined by buyer's agent, will buyer's agent interpret to the buyer that the seller rejected the buyer's offer to purchase?
Whenever I submit an offer for a buyer, I attach a separate document (a Commission Addendum) that states that the seller will pay $xx.xx or xx% as stated in the MLS listing agreement. I sign it, the seller signs it and the listing agent signs it. If an only if, my buyer is paying a portion of the commission, would I find it necessary to have the buyer sign it as well. In either case, I don't feel that it should be a part of the "offer."
Your thoughts please?
Charita Cadenhead, Your Metropolitan Birmingham, Alabama Real Estate Broker of Choice
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