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Multiple Offer question

Seller909

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In a situation where a property is presented with multiple offers, is there EVER a situation where an agent presenting an unsuccessful offer would be entitled to any remuneration or commission? Even if the agent presenting that unsuccessful offer happened to be from the same agency as the listing agent?

Looking forward to feedback on this one.

Thanks!!
 

Thomas Beyer

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Not usually, unless you sign an agreement as a buyer that says "$400 is paid for every offer realtor will present"
 

Seller909

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Not usually, unless you sign an agreement as a buyer that says "$400 is paid for every offer realtor will present"
Thanks for the reply, Thomas. I was given this excuse by my realtor when he saw my listing sell for more than listed and I guess he wanted to share in the profits - stated that he had to compensate the other agent from his agency that had presented the losing offer. This is despicable and unethical to even try this, don't you think? There was nothing in the contract stating any payment for offers.
 

Thomas Beyer

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It is not really your concern how your (selling) realtor pays other realtors, usually 50/50. But, for the fun of it, why don't you phone his broker (every agency has one) and ask him/her about it.

realtors, among themselves, often have referral agreements, in writing or more often, verbal, i.e. leads to mortgage brokers, insurance agents, other realtors ..
 

Seller909

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It is not really your concern how your (selling) realtor pays other realtors, usually 50/50. But, for the fun of it, why don't you phone his broker (every agency has one) and ask him/her about it.

realtors, among themselves, often have referral agreements, in writing or more often, verbal, i.e. leads to mortgage brokers, insurance agents, other realtors ..

It becomes my concern when my listing agent asks me to revise the commission paid to the listing agent when an offer is already on the table to compensate a losing agent's bid. Any of those types of agreements amongst realtors should come from the original commission agreement, not a request to change it when an offer is already in the works.
 

Thomas Beyer

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It becomes my concern when my listing agent asks me to revise the commission paid to the listing agent when an offer is already on the table to compensate a losing agent's bid. Any of those types of agreements amongst realtors should come from the original commission agreement, not a request to change it when an offer is already in the works.

You are correct.

Ask him about this unusual situation, and also ask him if his broker is onside with this ?
 

Seller909

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You are correct.

Ask him about this unusual situation, and also ask him if his broker is onside with this ?

Thanks Thomas, You have given me some valuable insight. I think I already knew this but just wanted confirmation that I wasn't misunderstanding the intentions of the players involved.
 

Matt Crowley

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Thomas is right, you owe him nothing.

It would be like me putting together a coupon book and then demanding that you pay for it because of all the money I could save you. Ummm...no? Silence is not acceptance of a contract and you did not make a unilateral offer. You owe him nothing.
 

Seller909

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Thomas is right, you owe him nothing.

It would be like me putting together a coupon book and then demanding that you pay for it because of all the money I could save you. Ummm...no? Silence is not acceptance of a contract and you did not make a unilateral offer. You owe him nothing.

Just to clarify ... I was asking if the losing bidder would be entitled to any of the commission that was previously agreed to in the contract. I know, either way it would be the same answer, I expect - NO. There would be no additional payment as the commission percentage has already been established in the listing contract.
 

Sherilynn

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No, there should be no commission change and there should be no commission paid to the losing bidders' realtors.

I wonder if the losing realtor actually requested payment, or if this was a ploy for your realtor to get a higher commission for himself and not bother to pass it along to other realtors. Perhaps there is only one rotten apple in this bunch.
 

hope

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Despite there being a commission laid out in the original listing agreement, the percentage can be amended, with the seller's consent after an offer has been made. (before acceptance) Usually this is done as a reduction, to accommodate a lower sell price, the listing agent eats a portion of the commission so the seller can still come out ahead. I have never seen it 'go up', especially without the seller's consent. Unfortunately folks like this give Realtors a bad name- takes "entitlement" to a new level :) Maybe as a new Realtor I have not yet been exposed to such excitements.

As Thomas suggests calling the broker is a good idea.
 

SVS

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It becomes my concern when my listing agent asks me to revise the commission paid to the listing agent when an offer is already on the table to compensate a losing agent's bid. Any of those types of agreements amongst realtors should come from the original commission agreement, not a request to change it when an offer is already in the works.
It sounds to me like these 2 realtors had a back door deal going on. I think perhaps your property was a little undervalued on purpose by your listing realtor to get his buddy a better price, perhaps for investment purposes. Then when a proper offer came to the table at a fair market price he was a little sour. You should definitely make the broker of record aware or perhaps your provinces equivalent of RECO(Real Estate Council of Ontario) sounds to me like there could of been some form of price fixing. I am curious what was your list and sale price on this property?
 

Seller909

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I had a conversation with the agent and the commission was set back to the original agreement. May have been a case of kindness remorse (signing a really low % agreement and then not wanting to live up to it after the offer was on the table).
 
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