I am not using a Buyer Broker so can you PAY me their commission?

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

To set the scene the buyer wrote up his own offer. He wrote he was not using a buyer agent so would want the buyer agent commission paid to him on my new Manchester NH area home listing. It lead me to ask the following question, "Was he a licensed agent here in NH?

 

The answer was no. In that case, then no, you can not get paid the buyer agents commission. For background info... the buyer called me direct. The first question is always if he is working with a buyer agent. The answer was no. During the 2nd showing and then the 3rd showing he was alone. So when he next said he would go get a buyer agent to write the offer who would then split the buyer side commission with him, the answer again was no. I told them they would not be procuring cause and therefore not due a commission. 

 

He changed the topic and what about the offer? Well, it could not be presented as is. I could write it on a standard purchase and sales form. He would need a pre qual letter and a deposit check. Why did he need a pre qual letter turned into a good 2 minutes of why he did and what it is for. After that, he wanted to lower his offer. The bottom line was a bigger problem, the offer was $72,000 less than asking price. It did not end their when he then wanted to add that the seller would pay 6% towards the buyers closing costs. 

 

When enough was enough the offer was re-typed. It had to be in writing to even present to the seller. The good news was the seller did not throw my out. He listened and countered with his best offer. He also said that if the buyer really wanted or needed those closing costs, we could add them to the price. The counter offer was sent to the buyer. The buyer should have been very happy. however the buyer was back to the commission.

 

The buyer was educated that the listing commission is a contract between the seller and the listing agent, one that he can not dictate or change. He was still not an agent and still could not get a buyer agent fee. Then I could just pay him? NO, any payment or credits have to be in writing and n the HUD. The buyer decided he wanted to think about it. After all the house needed work, he tore it up for the next few minutes and until I called it a night. An email went out to everyone that saw the home that an offer was in and they should move if they were still interested

 

Over night another offer came in. There was 2 second showings scheduled that morning and 2 more offers came in. The Buyer decided he wanted to take the deal and we could discuss him getting the commission. Unfortunately for him a clean offer came in and was accepted. It was substantially higher. It was clean. It had a pre qual letter and the buyer was putting down a great deal of money. 

 

 

The moral of the story is that the Buyer lost out. Not willing to listen and learn was a down fall. He should have fired his own buyer agent but did not want one. In the end the seller was very happy. The seller was my client. The buyer was his own worst client. 

 

There is a difference from agent to agent.  That a Buyer or Seller should not choose just any agent, choose the BEST agent for the job. My philosophy is simple, provide more personal and professional service to guide my 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 30 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. 

 

    

 

 

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Rainmaker
2,958,155
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Thank you for the comment Bruce Kunz , yes many people think if it is online it must be true

Dec 30, 2018 06:50 AM #67
Rainmaker
2,958,155
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

It is a trend Mike Cooper, GRI and in this market they were easily dissmissed. 

Dec 30, 2018 06:51 AM #68
Rainmaker
2,958,155
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

I always like to give someone a chance James (Jim) Lawson, DBA however in these cases, i like to politely move them along, as you can not help someone who does not want to be helped.

Dec 30, 2018 06:53 AM #69
Rainmaker
2,958,155
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

The seller was very happy Kat Palmiotti but i do not think the buyer learned anything

Dec 30, 2018 06:53 AM #70
Rainmaker
2,958,155
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Like i told him Michael J. Perry, the listing contract was between the seller and I. He should worry about making the best offer for him and the seller will answer what is or is not acceptable to the seller. I have cut my fee to get a lower price for sellers when needed, but each is case by case. My contract with the seller is not for the buyer to dictate. Like i put in writing for this buyer, how much do you want to pay. How much credit do you want for your closing costs, when can you close? Those are what is important, then the seller and I can work out whether that is acceptable to the seller and if close, how we can make it acceptable. 

Dec 30, 2018 06:57 AM #71
Rainmaker
565,463
Denise Hamlin, Broker/Owner
Cardinal Realty ~ 319-400-0268 - Iowa City, IA
Helping Happy Clients Make Smart Choices

What a story Scott. It's really not that unusual for buyers think we don't do enough to earn our commission. This is one buyer who learned the hard way that we do way more than they think! (Although considering he still thought he was in with a chance after there were multiple offers on the table I am somewhat doubtful that he learned the lesson he should have).

Dec 30, 2018 10:00 AM #72
Rainer
39,955
Ken Jones
Ken Jones Real Estate Advisor - Toms River, NJ
Real Estate Training & Coaching

Scott Godzyk Perhaps, the better lesson to be learned from this is not to piss away your time on prospects until and unless they have a written mortgage commitment in hand before ever showing them a property.

Then, make sure they understand that only licensed real estate agents who procure a transation are legally entitled to earn a commission.

Nuff said.

Happy New Year!!!

Dec 30, 2018 02:20 PM #73
Ambassador
934,879
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Scott, sounds like a happy ending to me. Everybody got what was coming to them!

Dec 31, 2018 07:15 AM #74
Rainmaker
427,006
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Scott, those kind of people are more trouble than they are worth! I feel sure if you had put it under contract,the buyer would have continued to demand more concessions!

Dec 31, 2018 02:13 PM #75
Rainmaker
1,522,319
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I've said it before and will no doubt say it again - you DO run into the strangest people.

Happy New Year Scott!

Dec 31, 2018 08:43 PM #76
Rainmaker
618,628
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

The buyer was his own worst enemy! Good job creating urgency for the real buyers with representation!

Happy New Year!!!

Dec 31, 2018 10:48 PM #77
Rainmaker
527,581
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

I would like say that the potential buyer won’t let it happen a second time, but this one doesn’t seem to get it. Lowball offer, no representation, 6% in closing costs and STILL trying to find a way to get the “buyer commission”, even after there are multiple offers. It may take a few more losses. Good job to you for advising your seller to respond and congratulations on the accepted offer!

Jan 01, 2019 11:52 AM #78
Rainmaker
1,174,061
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Scott Godzyk - This "buyer" sounds exactly what I call a time stealer.  He is stealing my time every time I talk with him. 

Jan 01, 2019 12:35 PM #79
Rainmaker
501,727
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I'm very curious what Mr Buyer did for a living.  You were so patient with him, explaining rules and regs, and still....he just didn't understand the process.  Too bad you wasted so much time with him however....you did get an offer the seller was happy with !!! Moving on!

Jan 02, 2019 09:32 AM #80
Rainmaker
393,033
Steven Beam
RE/MAX Alliance - Parker Colorado Real Estate. - Parker, CO
Parker Colorado Real Estate

Sounds like a fun one right there. Seems like all types are coming out of the crazy house in this market. Time wasters...

Jan 02, 2019 10:08 AM #81
Rainmaker
454,683
Michael Eisenberg
eXp Realty - Bellingham, WA
Bellingham Real Estate Guy

Buyers are foolish not to use an agent to save the commission, as you just proved. Trying to save a bit of money cost them the house.

Jan 02, 2019 12:01 PM #82
Rainmaker
972,136
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Another good story and lesson from you!  That buyer clearly doesn't understand real estate.  When did he last buy/sell a home?  Soounds like it was 20+ years ago!  Glad you got a better offer.  That buyer needs to learn his lesson and study up, and then hire someone he trusts - you!

Jan 02, 2019 12:05 PM #83
Rainmaker
371,270
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

It's sad that' buyers' greed for part of a commission cost him a home he liked.   Hopefully now he understands what good representation is worth!

Jan 02, 2019 05:52 PM #84
Rainer
439,280
John Dotson
Preferred Properties of Highlands, Inc. - Highlands, NC - Highlands, NC
The experience to get you to the other side!

Scott, as it starts, so it goes.  This guys sounds the perfect exmple of someone to DUMP!

Jan 13, 2019 08:35 PM #85
Rainmaker
62,046
Ricardo Mello
Manhattan Miami Real Estate - Manhattan, NY
Manhattan & Miami Real Estate Agent

I totally agree with Debra Leisek! 

Working with a buyer's agent is imperative if the client wants to have a successful and smooth transaction... We even wrote this piece a while ago: "Why You Need to Use a Manhattan Real Estate Buyer's Agent"

Jan 16, 2019 01:18 PM #94
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