Birmingham Michigan and Metro Detroit Real Estate

I am the listing agent for a short sale and I showed the home from a yard sign call.  Of course, my first question is "are you working with an agent?"  If not, this is always nice-if they like the home, I can earn commission - particularly in a short sale when the bank dictates commission.   If they don't want this home, maybe I will work with as their buyer's agent. 

While I felt I connected with the wife, I couldn't tell with the husband.  As a realtor, it is often part of the job to read people-I don't want to be pushy-after all there is a reason they aren't working with anyone - particularly since the buyer doesn't pay the commission.  I also knew they had sold their home and closing soon and ready to make an offer on the right home.  Hmm- why aren't they working with the agent who listed and sold their home? 

I was gracious and gave them a lot of space.  I didn't feel they wanted me to call so I waited.  He called and wanted to put an offer - great I thought.  He mentioned using his own form and told him I have an online form that I can send and he can edit and fill in his terms etc.  I thought this works since I represent the seller and cannot really guide him on a price - always a bit difficult when I am facilitating both parties.  I did send a CMA to support our recent price reduction and sent a copy to the buyer for his use. 

I received the offer and under "other conditions and terms", he had written the following: 

"Buyer is submitting this offer and is not represented by a Buyers Agent. Buyer wants the amount of sales commission, that would normally go to Buyers Agent/Broker, if had one, instead will go to the Seller or bank." 

I was surprised and disappointed.  I had two offers on this home where the other was represented by an agent.  However, the first offer was the highest and best.  It is my duty to present all offers-and to get the home sold.  I did show the purchase agreement to the owner of my company and she reminded me that the commission is negotiated between the seller and the agent/broker.  I write this for two reasons:  first to see if other agents have had this happen and how they handled the situation - or would handle it if/when it does happen.  Secondly I write this for buyers who may read this post. 

I know there are buyers who think they will get a better price when the seller pays less commission and often feel that agents get paid too much.  In a short sale situation, this doesn't matter since the bank decides and they often cut commission any way. The seller would have a relationship with the agent (over the bank) who is assisting them in getting it sold.  Two offers being similar, I would always want a fellow Realtor to make a commission-particularly when I have no relationship with a buyer.  There is less work involved in working with an experienced agent. 

Buyers-it is always best to be represented, even if it means finding another agent besides the listing agent.  In a designated agency, the listing agent always represents the seller and has no fiduciary relationship with a buyer, so it is best to have a buyer's agent.  There are so many things that can come up in the extremely important decision to purchase a home - particularly in these economic times with short sales, foreclosures and declining markets.  If you do not find a buyer's agent, the majority of Realtors will always represent both parties fairly and welcome the opportunity to earn extra commission in what are challenging economic times for agents as well. 

At the very least, communicate your intent in negotiating independently, see what the listing agent has to say and create an understanding-after all, the word negotiation means involving others to get the best result.  I think in our personal lives as well, we could be more straightforward in our communication-we often withhold from others, don't trust and are suspicious that we are not all working for the best outcome.  We might as well find out by asking questions and communicating our intent-after all, our underlying intent is always there and communicated on some level.  Being straightforward is powerful.

Royal Oak Realtor selling Real Estate in Southeastern Michigan.  TishHouse sells Houses - selling Oakland County Real Estate with RE/MAX Showcase Homes in Birmingham, Michigan. Helping People in a challenging market by specializing in Short Sales. See what my clients have to say about my extraordinary customer service.