I am the worlds biggest sucker. I just got screwed out of the house I REALLY wanted because I THOUGHT that I knew what I was doing. To make a LONG story short, there was a very nice house for sale in a GREAT neighborhood...right next door to our best friends in fact. So...I called the listing agent. I asked her if she would would be a dual agent at 5 percent commision instead of the 6 percent to make it more affordable. She said sure. So we took a look and REALLY liked it. We took a second look and LOVED it. So we went to her office and made an offer. We discussed ALL our cards. Told her what we were going to offer, gave her all of our details, what we need out of the deal ect. THEN AT THE END SHE HANDS US A FRIGGEN SELLERS AGENT DISCLOSURE FORM. Yes, you read right. She SCREWED us. She said "we never signed anything agreeing to that". I was so friggen mad I could have really went off. My husband tried to calm me as I explained that we would have NEVER given her ANY of the details we gave her if she had not of LIED to us. So in short, the deal is just about DEAD
Doesn' the seller pay all agent commissions where you live? (it can be different in different parts of the country) If you didn't sign the agreement, I would get another agent and go in with another offer, that way she only gets 3%!
Most states will require a disclosure even if the realtor is working both sides of the fence. I don't understand what you thought was going to happen. If you came up with a fair reasonable offer that you are comfortable with, it shouldn't matter.
ohnostuck, email flatan, he'll tell you what you should do, and what to expect. We are so lucky that we have such a valuable source of information on this board. I'll be needing it in the near future, I'm hoping. Good luck to you. I hope you get the house of your dreams!
I spoke to flatan last Friday and I must say he was professional and knowledgeable... while he sells the products I talked to him about, he dropped an initial 3 second marketing for his firm but after that never mentioned it again. I appreciated his help and hope that perhaps in the future I will be able to do business with him.
ohnostuck If I keep reading all the flattering things people are saying about me, I'll never be able to get through the door. My head will be to big...LOL Seriously now though, a realtor, while allowed to be both a seller's and a buyer's agent in the same transaction, always will represent the seller in that scenario. The real estate agent, if they are representing the seller have a fudiciary responsibility to the seller. Even if the real estate agent hasn't signed an agreement with the seller, unless the real estate agent specifically signs a buyer's agent agreement with you, they are required to represent the seller throughout the transaction. What I would suggest to you, if you want to still try for the house, would be to locate a good buyer's agent where you live and have them represent you and let them presesnt the offer to the listing agent. The agent is required to present the offer to the sellers. Email me if you would like me to go into further detail with you off-board. fla-tan
Fla-Tan, You're a HUGE asset here and I just want you to know I really appreciate your time and knowledge!! I won't be buying for at least a couple more years but I read just about every thread here on mortgages etc. Your advice is always easy to understand and extremely helpful and I'm for sure one of those people who would rather ask a "friend" than someone else because this subject can be downright confusing!! I've been reading more and more info (gosh there's a lot out there...) but it can swim around in your head and not make a lick of sense! Please never go away..... Newstdt ")
O.T. Fla-Tan Yea I know you don't want your head to get any bigger..lol but just wanted you to know I sincerely appreciated the help & time you recently spent deciphering the mortgage loan info for me..many thanks!
ohnostuck, I really hope things work out for you and the house. It sounds perfect for you. Try to get around getting "screwed" and see how things work out. ) Our best is with you.
In TX, we Realtors are supposed to give a disclosure to any buyer/seller IMMEDIATELY on first contact so they completely understand who we are representing. Even if we are representing the seller we have a fiduciary duty to any buyer. We cannot disclose private negotiating information - such as how high will our client go. Don't give up on the house! Find another agent, and submit a contract. Specifically ask the next agent what their duties to you are (they do differ from state to state). This is not over! Finally, the seller always pays the commission here, so I am not sure why this realtor agreed to accept less? You may want to talk to that realtor's manager, or your state commission. Its these sorts of tactics that give realtors such a sleazy reputation. Good luck!
Maybe I have confused some of you. The Realtor agreed to be a dual agent. The commission thing is not the thing that is wrong. Although when I asked about her taking 5 percent is was so that the profit that the sellers got would be higher with the offer that we presented. The problem is that because she told me she was working as a "dual agent" it would have been illegal for her to discuss or strategies in our agreement including everything that we said to her. Because she had told us that she was a dual agent we went over everything (including how high we were willing to go). This may not seem like a big deal to you all but it really is. It could be the difference in over 7,000. She also kinda stuck us with something else. We had told her that we wanted to close NO LATER than Dec 29th. So, when we were there signing the agreement she says (very fast) that we will be closing on or before Dec 29th with a rent back until March 15TH. Another red light.....They are building a house. They want to close on the house ASAP but want to live there until March 15th (renting it back). That is a month and a half AFTER we close that I would have to find some place else to live, so the sellers are not inconvenienced. I told her no way...maybe that is when I should have known that she was working as just the sellers agent. You would have thought that I told her that her Mother died. Oh well...I guess that it was not meant to be.
I can understand that. I know it's done all the time, but with first time home buyers like myself, as soon as I get those keys--I want to see all my stuff in there!! There will be another house that will be even MORE perfect for you. You'll look back and say it all worked out for the best, you just wait and see!
Sorry Ohno, I just reread your 1st post and caught that you went to the listing agent. The LA is pretty much stuck between a rock and a hard place to the point all she can do basically is move paper back and forth between the buyer and the seller. The whole rent back thing is common, and probably not a hurdle you can surpass unless the house keeps sitting. I always advised clients to consider not allowing a rent back, but a closing at a later date. Once you close, and rent it back, you are in a landlord/tenant situation and the ball game changes. What if their house isn't finished and they don't move? What if they tear the place up? (Its now yours), etc. You will find another house to fall in love with, there are many out there. Find an agent (I kind of like rookies for buyers agents - they will bust a$$ for you), have them do the looking. I don't recommend contacting a listing agent directly unless you are an excellent negotiator, willing to go it alone. Good luck!
fla-tan you were right on with your post. Ohnostuck what state are you in? In MA we are required to have a potential home buyer sign an agency diclosure form upon first contact. Many states have similar laws. Feel free to e-mail me and I'll give you my .02 from a buyer agent point of view. EdG
ohnostuck, You need apure 100% buyer's agent. Even in a dual realtor situation, that real estate agent - unless they are a certified buyer's agent - is still bottom line ONLY rsponsible to the seller. They HAVE to be responsible to the seller. Even a buyer's agent that is a "certified" (NEBA) buyers agent and signs an exclusive contract with you - if they work for the same company as the listing company, they can't tell the seller anything about you but they can't tell you anything about the seller - so essentially they are quite limited in the services they are getting commisioned for - and generally the seller benefits in that situation. You need a true exclusive buyer's agent that does NOT work for a realty company that has any listings. Or if this is the house you are deadset on, then at least get a buyer's agent who doesn't work for the realty company listing this house. Read my thread "choosing a buyer's agent?" to see what kind of deal I got. Also - some wisdom - maybe this setback is a means by which you can rethink moving next door to your best friend. Not to discourage you, but sometimes this is the stuff "Sally Jessy Raphael" is born for (arguments over property lines, be they grass or mates, etc...) - and maybe you can think through everything a bit longer. Whatever you do, I hope things work well - but get a buyer's agent!!!!
