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So you think you can negotiate the commission with your agent when selling your home: Maybe not.

By
Real Estate Broker/Owner 8639604

 

When a consumer comes to a Realtor looking to list their home they are told the commission is negotiable.  They 'negotiate' the commission with the listing agent they select.  The home is listed.  They would do well to look at that listing agreement carefully. They will notice that no buyer or selling agent is listed as a party to that agreement.    That being the case they are not bound by it no matter what they are 'offered'.

When a buyer comes to a Realtor they may enter into an agreement regarding commission and the buyer may ask the seller to pay that commission when they make an offer.  That commission might be lower than anticipated by the seller - or it might be higher. 

There are two sides to each transaction - neither can unilaterally dictate the commission paid to the agent on the other side.

 

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NJHomeBuyer.com Realty

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Posted by

 

Paul Howard, Broker

NJHomeBuyer.com Realty

80 Barclay Center Suite 4A

Cherry Hill NJ 08034

856-488-8444

Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Pauk,  In some areas the broker/office is the " owner " of the listing and as such the agent is bound by that agreement.  Also, some states will not support a purchase offer which makes a commission adjustment a condition for acceptance.

Aug 11, 2008 03:46 AM
Paul Howard
Cherry Hill, NJ
Paul Howard Realty, 856-488-8444

Thanks for the comments Bill.

So far as I know the Listing office is ALWAYS the owner of the listing and their agents have to follow whatevery rules the owner of the company sets.

As far as a buyer in a  purchase offer making a commission adjustment a condition for acceptance"  A BUYER can place any conditions on THEIR offer that they wish.   Though it is true that the AGENT can't suggest modifying the agreement between the listing office and the seller since that is their contract. 

Likewise, the listing office can't interfer with the agreement between the buyer and their agent - which may include a provision that if the buyer does not want or is not able to pay the commission directly thay can condition THEIR offer on the seller paying it.

This is not a state by state issue.  (unless I can be provided with something in law that contradicts this).

 

Paul Howard

 

Aug 11, 2008 05:19 AM