What happens to the commission when a licensed agent buys a home? Let me share a story about my new Manchester NH area Home Listed For Sale. The first day we had many showings and many offers. As I sat with the seller going over each offer, one stood out. It was from an a licensed agent.
It did not stand out because they were an agent. It stood out when the seller said "That was the person sho stopped by my home and wanted me to go over their offer right away on the spot." Now I tell all my sellers two things. First do not let anyone into the home unless I have confirmed an appointment with them for that buyer. Second to not discuss offers or anything direct with buyers. They said they did not, but did not call as they knew they would see me this morning.
Wait, What? With my hair standing up we reviewed the offers and made a chart. Looking at offer price and closing date, I also pointed out if they were cash or getting a mortgage. What type of mortgage and how much they were putting down. I explained why the type of mortgage mattered. We looked at contingencies such as inspections. Lastly we looked at what each buyer was asking for concessions like the seller paying the buyers closing costs.
When we got to the agents offer. They offered full price as many others did, however they asked for 6% of the sales price towards the buyers closing costs. Then they asked for an additional amount equal to the co broke fee be added to their down payment for the buyer broker fee as they represented themselves. That offer was put aside.
The seller choose an offer higher than full price, the buyer was putting down about 50% if the purchase price with a conventional mortgage. They included a pre approval from a local bank and did not want a home inspection.
The seller was very happy and took this offer. Needless to say, the buyers whose offers were not accepted were not happy. You can guess who was the most vocal. Yes the agent who made the offer. As they complained I did not want to pay a buyer broker fee, it was their 6% credit that killed their offer. Not to mention no pre qual letter. I stopped them mid sentence offering to meet at their office with the managing broker to go over. They declined. I did send a copy of that offer to the managing broker who i have worked with on a variety of sales for over 20 years.
For my seller, they are very happy. For the rest of you a great blog story to share. AND... the answer to my question is yes, an agent can get a commission when buying, but it needs to be disclosed and on the HUD. The seller thanked me for letting them know what to expect and what to look out for. Knowing what was right and what was wrong helped them in their selling process get the best offer possible.
The MOST IMPORTANT message is to share with every consumer that my philosophy is simple, provide more personal and professional service to guide clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. Those that hire me, find a dedication like no other.
To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com .
About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. Proud to be locally owned and operated with 32 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area.We are Full Time Agents ready to serve all of your Real Estate needs. Servicing Hillsborough, Rockingham, Merrimack and Belknap counties.