Important Notice on Working With Buyer's Agents
Tips to keep you informed:
- If asked “are you negotiable?” by a buyer’s agent, “yes” may not a great answer because by doing so, you’ve essentially countered before they’ve even made an offer.
- If a 30-day close is requested, realize you will likely not have a loan commitment from the buyer until day 25-27 (likely) leaving just a few days to move out or sign a lease. Closings don’t always happen as planned. It would be far better to have a 45-day close and consider a brief post-occupancy period. Questions about how to do this, call broker Keith Gordon.
- Remember, contracts are 100% in favor of the buyer as well as protecting their escrow funds.
- If you are the nicest home on the street or over-improved, a buyer might offer you what you think is a great price but then attempt to renegotiate once the appraisal comes in lower than the contract price. Watch Keith Gordon video posted on GetMoreofffers.com about appraisal short fall risks.
Part of having a successful sale and reducing stress is being prepared for what lies ahead. Below is some very important info about dealing with agents, negotiations, title and closing.
Most of our sellers experience positive interactions with Realtors. However, from time to time, the occasional agent may violate the Realtor Code of Ethics or make statements that violate federal anti-trust laws.
In order to prepare you for that occasional unethical agent, here is some valuable info:
An agent could resent that you listed your home with a discount broker… They’re upset they didn’t get your 6% listing. (Boo hoo!) The fact that you are self-represented doesn’t give anyone the right to treat you with less respect than what is due. Do not let an agent be disrespectful! You are allowing them access to your home and that is not their right; it is a privilege. Most agents that whine a lot don’t sell homes… they’re too busy complaining! One might threaten that they want more commission or don’t want to pay our administration fee but in reality they will sell your home regardless of the compensation because buyers run the show, not agents.
Be watchful for agents who violate the law... Examples include:
- An agent complains about you being self-represented or attempts to solicit your listing = ethics violation Article 16.
- An agent complains that your particular offer of compensation/commission is not standard = federal anti-trust violation.
- An agent makes disparaging comments about broker Keith Gordon, GetMoreOffers.com, ADDvantage Real Estate or our business model; flat fee brokerage/limited service listing = violation of Code of Ethics Article 15.
Agents who manipulate to get more $$... While buyers’ agents prefer 3%, our sellers have been successful selling at anywhere from 1% to 3%. Whatever you choose to offer is fine. It’s entirely legal and ethical for an agent to respectfully argue or negotiate for a higher commission, but they must do so prior to showing the home. Refusal to show is a FREC violation. There is no “standard” commission. Buyer’s agents have the legal right to pre-negotiate a minimum fee they are willing to work for to work with their buyer. So, for example, if you are offering 2% and the buyer’s agent wants 3%, they can get their buyer to agree to pay the 1% difference.
You may be met with threats of not showing your home or attempts to negotiate a higher commission or they won’t show your home…This is a clear violation of Florida law. Ignore these agents (but report them to broker, Keith Gordon immediately). The buyer will find a way to see your home likely with that agent, or another agent or by themselves. Our sales statistics wouldn’t be so impressive if we weren’t successful selling homes OUR WAY!
The broker requests that you report any violations as mentioned herein. Forward any inappropriate emails or text messages to the broker. If things “sound wrong,” ask the agent to email to you for consideration and then forward to broker, Keith Gordon. He will pursue immediately with the agent’s broker.
A few things to remember:
- Seller picks and pays for title by protocol in all counties except Miami -Dade/Broward, Collier and Sarasota. Keep control of title whenever possible.
- You have an Exclusive Agency Listing with Broker, Keith Gordon. Agents are not permitted to solicit you to list with them. Although, if you engage them about listing your home, it then becomes legal for the agent to discuss listing with them.
- ADDvantage’s compensation in the MLS is displayed as [x] % - ($299/$199) per your listing agreement and our business model. This means the commission the buyer’s agent will receive is the sales price ($) x (X%), less $ (199/299). Some agents will ask about this; some agents will not. In some areas of Florida it is business as usual and in some it is not as common. Either way, it is a legal and ethical offering. If ever challenged on this your answer is always the same….“It is the offered compensation.” Under no circumstances should you agree to pay this fee. If you feel that you are being pressured by an agent regarding this, or any other issue, please contact our office.
If you have any questions about this information, call GetMoreOffers.com 877-232-9695.
Best of luck with your sale!