“My husband and I went to view a home which we found on our own. We contacted the listing agent directly and he had an agent from his office meet us at the property. We were prepared to make an offer on the home when the agent who showed us the property got “weird”. Given that the agency did not find us, we asked for a “gift” of the closing costs. The agent who showed us the house said that “they would try to work with us” but couldn’t guarantee closing costs b/c the house is a short sale and sometimes the lender reduces closing costs. I understand that lender’s aren’t in the business of giving homes away (as you indicated in a previous newsletter, shorts sales tend to sell for market value). However, my research indicates that lenders do pay commissions. After all, a realtor isn’t in the business of working for free either? It’s a business transaction, all parties (seller’s and buyer’s agents) expect to be paid. The agent who showed us the home proceeded to get rude and stated that ethically if there was a commission to be had from us buying the home, she was entitled to it b/c she showed us the home. Is this true? She is not our agent. Aren’t we merely “prospects”? Isn’t she acting as the seller’s representative b/c the seller’s agent couldn’t show the house himself? Don’t they, the agency they work work, have a fiduciary duty to show the home for their client? Would we be justified contacting the CA Association of Realtors and/or California Dept of Real Estate regarding this matter? It seems that the agent who showed us the house is being unethical. She’s blocking a potential sale b/c she is more concerned about her commission. Please advise.”
***ANSWER:
Your question comes up occasionally. And youre not going to like my answer, but Im sure you want the truth.
There are 3 reasons you are not entitled to any of the real estate fee:
1. The real estate fee is agreed upon in a contract between the seller and the agent. Since you are not a party to that agreement, you simply dont have the right to receive any of the money or insist that the commission be decreased. As attorneys say, you have no standing.
2. You say you found the house on your own. But you found it on your own due to the agents advertising. Its analogous to seeing an ad for a car, walking onto a lot, having the salesperson show you the car, then telling the sales manager you found the car on your own so you expect a discount and the salesperson should not be paid. Try that and see what happens.
3. If you dont have an agent, someone has to do the work during the escrow that your agent would have done. Such as: answering your questions, arranging and attending inspections, dealing with contracts and other documents, checking on your lender, keeping you informed, advising you*, watching out for your interests*, etc., etc., etc (*if they represent you). Be it the agent who showed you the home or the sellers agent, someones got to do it and be paid for their work. You could argue that they didnt do as much work because they didnt originally tell you about the home. But agents arent paid for telling you about homes (if they were, Id be retired by now). Theyre paid for the end result of a closed escrow. Usually that entails a whole lot of work, occasionally only a moderate amount.
Bottom line:
I understand your feelings, but youre not entitled to any part of the real estate fee. And youd be so much better off having a good agent representing you and watching out for your interests.
BTW whatever the circumstances, the agent was out of line to be read to you. Thats just not professional.
So you’re looking to buy a home or investment property in San Diego?
