“Thanks for Nothing” (Literally) Department
“Please note Buyer/Broker representation agreement for commission.”
–Excerpt, MLS Agent Remarks
I call the disclosure (above) the, “you’re going to get stiffed — but at least I told you so” strategy.
That would be as opposed to the, “you’re going to get stiffed — but I’ll let you discover that for yourself” strategy.
Payout to Buyer’s Agent
What’s going on is that, instead of offering to share their commission with the agent representing the Buyer, the listing agent (representing the Seller) is going to take all of it for themselves.
So, instead of offering typical payouts such as 2.7% or 3.15% on MLS, the listing Broker fills in the relevant field with $0 or $1.
Unlike most Brokers who do that, this one is actually calling attention to that in the “Agent Remarks” section on MLS.
Umm . . . OK.
Contractual Safeguards
Understandably, Buyers’ agents — or at least ones who rely on selling real estate to make a living — don’t much care for that practice.
The two-fold solution: 1) write into the Purchase Agreement a clause stating that the Seller shall pay the Buyer Broker a specified % of the sales price at closing; and 2) a Buyer Rep(resentation) agreement that provides that the Buyer will pay their agent if the Seller doesn’t (by far the usual practice — I’ve NEVER had a Buyer who paid my commission because the Seller didn’t).
P.S.: Sellers who agree to pay their agents a hefty commission should make sure that a chunk of that commission is earmarked for the Buyer’s agent (vs. claimed entirely by their agent).
