Avoiding Commission Fees
I saw a house I liked, saw a for sale sign, then saw the name on the mailbox. I tried to call the owner directly, no one answered so I called the agent. The agent showed me the house. He is really unprofessional and even told me the seller will take less, which I always thought was a no-no. Since I saw the name on the mailbox and tried to call the seller, and since the agent is shady at best, what is your opinion? Should I just avoid the agent and handle my discussion directly with the seller, which would also avoid the commission this guy is going to get for his poor representation of the seller?
The promise to pay commission is between the seller and his or her agent. Frankly, it's not your concern. Even from your account, by the way, the agent has already performed some services -- installing a sign, handling phone inquiries, showing the property. He also has had advertising costs (a broker's largest single expense). If we want to be generous, we can even hope he has the seller's permission to encourage offers by suggesting something under the listed price.
In the end, finding someone who wants the house is just the tip of the iceberg. Following through on negotiation, financing, inspections, attorney input, lender requirements and ever more mandatory paperwork keep an agent busy right through to closing. In any event, although we haven't seen the listing contract, we can assume a commission would be due even if you did deal directly with the seller -- who has already indicated, by the way, that he or she doesn't want to do it that way.
By Edith Lank