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Buyers Agent Confusion

By
Real Estate Sales Representative with Elite Agents 625409

I responded to another post on AR today from an agent that stated a buyers agent had mistakenly sent her a copy of the BA Aggreement with an offer and that she was surprised as many of the agents who replied to her post were that the agent was stating that they charged the buyer more than what is listed in MLS compensation.

A few things came to mind.  First, when the MLS allowed short sales, which were at one point all there was to sell in some areas, to cut the buyers agents compensation subject to the lenders approval all the smart buyers agents I know protected themselves and their compensation with a BA Agreement for Compensation.  As many of us know the term short sale was an oximoron for quite some time.  Buyers agents may be in a transaction for 12 months before they get any compensation at all.  

Second, there are many buyers agents who sepecialize in providing excellent service and may be assisting the buyer with new construction, relocation, or first time buyer assistance and they deserve to be paid for their time.

Last, there are many examples of listing firms discounting their compensation and offering limited service or entry only service.  Guess what?  That's their business model and who are we to say it is right or wrong,  So what makes an offer of compensation to the buyers agent any more our concern.

My first and best broker and my first and best trainer both taught me a few common sense practices.  Get EVERYTHING in writing, provide extrodinary customer service, do the deal and don't get attached to the outcome.  

The compensation is not the issue the transaction and the clients are.

  

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C.J. Johnson, New Home Consultant

Email: cj@800cjsells.com

Toll Free: 1 (800) CJSELLS

Phone: (210) 844-2121

Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

C.J. - I didn't read the original blog, but if the buyers agent charges more than the listing commission calls for, I presume the buyers agent has explained this to his/her client. If not, then I have problems with it.

Nov 02, 2012 09:41 AM
Mark Loewenberg
KW of the Palm Beaches - Palm Beach Gardens, FL
KW 561-214-0370

disclosure and explainations are always required.  I do the same to cover my back side as well.

Nov 02, 2012 10:15 AM
CJ Johnson
Elite Agents - San Antonio, TX
Sales & Building Consultant

Thank you for your comments. Yes the buyers agent did have a written agreement that covers both disclosure and compensation.  Let's just say that the compensation in MLS was X and the buyers agent works for no less than Y then the buyer is obligated under contract to pay the difference.  No appoligies needed.  The buyer pays the home inspector, their lender fees, title and escrow fees, attorney if needed, etc,   The BA Agreement allows the agent to be compensated on their minimum no matter what the sellers agent is willing to pay.

Nov 03, 2012 01:10 AM