Does this smell?

[Seller909]

Hi,
I recently sold my home using a realtor team. I think there was something rotten in the process but I'll let you be the judge - some of this is quite personal, so I am keeping it anonymous.

My friends of several years were the listing agents for my home. We agreed on a discounted commission and an asking price for the home.

Four days after the listing became active, I was presented with multiple offers. One of the offers was 'coming' from an agent in the same office as the listing agents. I ended up selling to the other buyer who was coerced into upping his bid to his 'best offer'.

Here's the kicker: During the offer presentations, one of our friends called and wanted me to increase the selling commission with the excuse that the agent from their office should be compensated somehow for his work presenting the offer from the other buyer that fell through.

I was pressured during the bidding to change the commission and because the listing agents were my friends, I ignored my gut and agreed to the change.

After thinking about it, I realize that I should not have revised that contract but what is done is done. Under no circumstance can I think of a reason why an agent whose offer falls through would be compensated - same office or not. I was given this line and some pressure by my so called friend to explain the change. I am frankly offended that my friend would go so low as to scam a friend.

Does anyone have any comments that would support such actions in this situation.

Looking for better friends ...

 

[Chris5513]

It sounds like you know your answer. From an objective view point, once you've established an agreed upon commission in the sale of the house, that should be it. It sounds to me that your friend who gave you a discounted rate, was pressured to pay an agent in his office and did not want the money to come from his portion. I think you're correct to feel wronged.

 

[Seller909]

It sounds like you know your answer. From an objective view point, once you've established an agreed upon commission in the sale of the house, that should be it. It sounds to me that your friend who gave you a discounted rate, was pressured to pay an agent in his office and did not want the money to come from his portion. I think you're correct to feel wronged.

I don't think there was any pressure by the 'losing' agent to expect any commission. I don't think that is the way commissions are generally worked out. Listing agents usually get their set fee as stated in the contract. A portion of that gets paid to the listing office but losing bids never get any payment do they? If that was the case, you could see that system being very abused.

 

[Thomas Beyer]

You can phone the office overseeing realtors and/or property managers in each province. In Alberta that is RECA. In BC it is called RCBC. They may, or likely will, fine the realtor. Your call.

 

[Seller909]

You can phone the office overseeing realtors and/or property managers in each province. In Alberta that is RECA. In BC it is called RCBC. They may, or likely will, fine the realtor. Your call.

This is a bit of a personal issue so I'm not sure I want to go that route but now I know where loyalties are. If it keeps eating at me I might have to go that route.

Cheers.

 

[Thomas Beyer]

I would certainly chat with the realtor "friend" first to get his side of the story, perhaps with some written backup by him on this highly unusual practice, and ask for a full rebate of this overpayment. If not, escalate to broker and/or RECA.

 

[Elizabeth Campbell]

As a REALTOR myself, I have to weigh in on this... and agree with Thomas, as he is completely right. This is not a typical or ethical practice among REALTORS and their clients. You should definitely report activity like this to their broker/owner of their office, or to their local real estate board. There is no change to a commission structure warranted for a scenario like this, and you should NOT have had to cover a "fee" for the other Realtor who presented an offer. No way.

 

[Seller909]

As a REALTOR myself, I have to weigh in on this... and agree with Thomas, as he is completely right. This is not a typical or ethical practice among REALTORS and their clients. You should definitely report activity like this to their broker/owner of their office, or to their local real estate board. There is no change to a commission structure warranted for a scenario like this, and you should NOT have had to cover a "fee" for the other Realtor who presented an offer. No way.

Thanks. Kind of sucks when I thought this was a friend. Seems like a little greed worked its way in when the offer price went up and friend wanted a piece of that pie.

 

[Thomas Beyer]

..Seems like a little greed worked its way in when the offer price went up and friend wanted a piece of that pie.

One could structure a commission agreement like this:

Commission is $6000+ 3% for every $ over $100,000 up to $400,000, plus 5% for every $ over $400,000 .. to give the listing realtor an incentive to get price up. As stated, a good chat with realtor "friend" is in order, and/or escalation to his broker/owner and/or the real estate council.

In the end, if it is win/win it is OK to pay a little extra as you got a lot more out of it, too !

Generally speaking, in life: If you feed peanuts, you get monkeys !

 

[Seller909]

One could structure a commission agreement like this:

Commission is $6000+ 3% for every $ over $100,000 up to $400,000, plus 5% for every $ over $400,000 .. to give the listing realtor an incentive to get price up. As stated, a good chat with realtor "friend" is in order, and/or escalation to his broker/owner and/or the real estate council.

In the end, if it is win/win it is OK to pay a little extra as you got a lot more out of it, too !

Generally speaking, in life: If you feed peanuts, you get monkeys !

Yes, I agree with you but that is all fine and above board as long as it is defined in the agreement ahead of time. In my situation, I had two offers on the table and that's when I was asked to revise the commission %.

 

[Matt Crowley]

In my situation, I had two offers on the table and that's when I was asked to revise the commission %.

Wow that is sneaky.

 

[SVS]

Depending on how good of friend they were, I would think it would be best to cut all ties with them and look for new ones, or if you really feel taken advantage of in a high pressure situation call the governing authority. In my opinion if someone is taking advantage of their friends like this imagine how they must be treating people with no historical relationships.

 

[Seller909]

Depending on how good of friend they were, I would think it would be best to cut all ties with them and look for new ones, or if you really feel taken advantage of in a high pressure situation call the governing authority. In my opinion if someone is taking advantage of their friends like this imagine how they must be treating people with no historical relationships.

I hear, you Sam. The difficult thing is they were really good friends. I have invited them both for a conversation to clear any misunderstandings. Rest assured, I do know where to find the proper authorities on this and make their life hell if they choose to stand by their choice. Thanks for your reply.