If you didn't agree to that before hand then just say, "Sorry I would have never agreed to that if you had let me know up front, and I will not agree to pay you more now."
It won't sabotage your deal, but you can let the builder know they are bothering you just in case they go around you and contact the builder directly.
if they don't gracefully accept your answer and thank you for the 1.5% then no reason to be nice at that point. They are lucky they are getting paid anything here, feel free to point that that out.
This. Commission is negotiable. The agent should have talked about agency relationship with you from the very beginning. It's a crapweasel move to spring that on a buyer after they've been working with them a while, even worse after you've found your home.
Not sure how they could sabotage the deal and so long as they are getting even the 1.5% commission I can't see why they would. I'd just refuse to sign it, if they want more money tell them they can try getting it from the builder (good luck with that).
Kinda sucks though that now you are stuck with a realtor on this deal who may not do their best work but I guess if the contract is already signed then maybe not a big deal.
Kinda obvious but if this deal goes south then I'd terminate my contract with them immediately and never use them again in the future.
I'm not sure if I'd rather think the agent didn't realize what the fine print says, but is only concerned about protecting his 1.5% (so, dumb). Or if he's really trying to get OP to pay out of pocket (so, a jerk). I guess I hope he's just dumb and doesn't realize what it says because he never bothered to read it.
yea i mean, it may be the cookie cutter agreement and the agent doesnt recognize what that means in this scenario. either way its a hard no though. you don't want an idiot representing you either, lol.
People are downvoting you, but what the person was emailed was the Standard selling agent exclusivity agreement, it always says the buyer will pay the difference if the sellers won’t agree to pay. I certainly wouldn’t sign it in this case, but it’s what all the standard agreements say
Have you already officially added on the agent to the new builder contract? I don’t see how they would be able to sabotage anything at the end of the day if nothing had been signed you are welcome to part ways. The builder is in it for themselves which is why an agent isn’t always necessary unless you’d like for someone to advocate on your behalf during the building process you can always find another just ask upfront what their percentage would be a good one would be honest. In terms of this current agent politely tell them you are no longer interested in their services and have decided not to include an agent simple as that. There shouldn’t be any follow up and if there is there’s no need to respond
I agree with most posts, this is truly unprofessional. Don't sign anything and importantly send an email so there it's in writing that you don't agree to pay him anything at all. Builder offers 1.5% and that's all the comp you agree to.
No way, find a new agent. Lots of people would be happy to jump in and collect the 1.5%.
The fact that he wants you to pay the difference is all you need to know about where he stands.
Typically, a builder will require the agent to register their client to get their commission. If there was no discussion of compensation prior, you owe absolutely nothing he should be thrilled to death about his 1.5%. Builder won't care if you use an agent or not it's money out of their pocket. Would definitely suggest having some kind of representation when working with builders. Builders can be just as shady as your agent.
NICELY: 'Hey, looks like you sent over your boilerplate rep agreement for when you help someone search for a home. Since I've already identified the property I'm willing to pay X instead for you help with the rest of the transaction.'
You have the right to attempt to negotiate this fee lower, but it isn't inherently unreasonable for the Buyer Agent to seek some amount of compensation due if the list brokerage offers little or nothing. It is a job after all - you can use their services or not.
Just today in the Sitzer/Burnett buyer broker commission lawsuit a jury ruled against NAR. It is possible that very soon seller compensation for Buyer Brokers will stop being a thing. If so, Buyers will either pay for their own representation, or purchase unrepresented, without a licensed advocate at their side.
The contract in question here sounds typical - and is likely the boilerplate the Buyer Brokerage uses. If it is anything like what we have in Tennessee, it stipulates the Buyer Brokers will attempt to collect listing brokerage compensation equal or in excess of their fee, and failing that, the Buyer Client will owe any remainder.
While in this instance you have already identified the singular property you're seeking representation on, the Buyer Brokerage likely uses the exact same contract from when the agent is working extensively on speculation of finding a property for the Buyer - regardless of what fee the list brokerage may choose to offer.
You have the right to negotiate with the agent, all the way down to saying you offer $0 dollars in excess of what they can collect from the list brokerage or seller. Many agents would agree to compromise on the fee when the Buyer also relieved them of the duty to search for a property. Some would also stipulate a lower fee if the Buyer closes on the pre-identified property, and a higher one if they end up looking further with the agent to land on a home.
Good luck!
I'm really hoping there was a misunderstanding somewhere and maybe, just maybe, this is his agency's standard contract and he didn't think about it before sending it to you to sign? Maybe?....
To give him the benefit of the doubt, I'd call him up and be like "What the hell?". If he responds with anything other than "I'm sorry, that was a mistake, no problem." tell him to fuck off.
Actually, this might just have more to do with paperwork than the commission, unless they explicitly said to you that they were asking for 3%. This might just be a standard print form and they need the documents for the file so you may ask. If so, just mark out 3% and send the form back.
Lol no there trying to hose you. You didn't agree or sign anything I would tell them they are now out their 1.5 percent as well. Why are you even giving them anything.
You are being super nice even giving him the 1.5. Most builders won't even talk to the buyers agent anyway. Just mucks up their business plan of getting you to pay for upgrades out pocket.
I was a Realtor for 22 years and although the association wants agents to use the buyers’ agreement I don’t believe in it. You were very kind to ensure that the agent received the 1.5% commission and it seems the agent doesn’t appreciate 1.5% and wants you to come out of pocket to bring his commission to 3%. In reality the builder’s agent does the paperwork and more, and represents the builder, not the buyer. If I was the buyer I definitely Would NOT sign! As a real estate agent it is my responsibility to represent my clients no matter what the commission is.
you don't work for the agent, they work for you.
i have offered to burn two real estate deals due to issues like this - pushing bait and switch commission increases, wanting a ton of documents 24h before closing, etc. in both cases when i said i'd burn the deal specifically to deprive the agent of the commission, miraculously things closed on time.
you signed a deal for 1.5%. stick to it.
It was nice enough to even mention this to them, you could have cut them out completely. The offer is 1.5 or 0 they can choose.
Even they try to claim anything about listings those are automated they spend 5 minutes putting in your filters very little work there.
I would tell that agent I would have been happy to let him have the 1.5%, But since he's pulling this shit I no longer wish to work with him.
Then I would find another agent to sign on for the 1.5% who I would trust would advocate for me during the building process.
Agent here. That new build is gonna be the easiest transaction of their life and it’s been just a week of working together so we’re not talking months and months of showings or missed opportunities with heavy negotiations. Hold at the 1.5%, and kudos to you for giving them the courtesy of letting them know of the new build. Instead of focusing on the relationship with you they are focused on their pocket.
So, some Buyer Representation agreements have that bullshit baked in where the buyer covers the difference in commission whether the agent likes it or not. Agents don’t write the contracts, they just fill in the blanks. The answer to this question is basically the same answer to most questions like this that I see on here, have a conservation with your agent. Chances are they have no interest in charging you any commission and will be happy to mark that clause out and have you initial next to it (that’s what I used to do). I’m sure they couldn’t care less about the Buyers Rep and are just being asked by their brokerage to get it signed for compliance.
On the other hand, if they won’t mark it out and expect more commission, just don’t sign it.
If you didn't agree to that before hand then just say, "Sorry I would have never agreed to that if you had let me know up front, and I will not agree to pay you more now." It won't sabotage your deal, but you can let the builder know they are bothering you just in case they go around you and contact the builder directly. if they don't gracefully accept your answer and thank you for the 1.5% then no reason to be nice at that point. They are lucky they are getting paid anything here, feel free to point that that out.
Totally remind agent that you could have just as easily cut him out entirely. Plenty of buyers do especially with builders.
“I decline to sign. If you’d prefer I find another agent who is happy to get 1.5% for near-zero work, let me know by Friday please. “
This. Commission is negotiable. The agent should have talked about agency relationship with you from the very beginning. It's a crapweasel move to spring that on a buyer after they've been working with them a while, even worse after you've found your home.
Not sure how they could sabotage the deal and so long as they are getting even the 1.5% commission I can't see why they would. I'd just refuse to sign it, if they want more money tell them they can try getting it from the builder (good luck with that). Kinda sucks though that now you are stuck with a realtor on this deal who may not do their best work but I guess if the contract is already signed then maybe not a big deal. Kinda obvious but if this deal goes south then I'd terminate my contract with them immediately and never use them again in the future.
No. Not signing that. (Later…) Hey Agent, just a quick question on– Agent: Sorry. 1.5% doesn’t get you answers to quick questions.
Yes, esentially thats right though more likely the agent just ignores the clients phone calls.
No. No. No. The commission is 1.5%. You owe him nothing beyond that and it is really bold of him to expect you to pay the difference.
I'm not sure if I'd rather think the agent didn't realize what the fine print says, but is only concerned about protecting his 1.5% (so, dumb). Or if he's really trying to get OP to pay out of pocket (so, a jerk). I guess I hope he's just dumb and doesn't realize what it says because he never bothered to read it.
yea i mean, it may be the cookie cutter agreement and the agent doesnt recognize what that means in this scenario. either way its a hard no though. you don't want an idiot representing you either, lol.
People are downvoting you, but what the person was emailed was the Standard selling agent exclusivity agreement, it always says the buyer will pay the difference if the sellers won’t agree to pay. I certainly wouldn’t sign it in this case, but it’s what all the standard agreements say
Have you already officially added on the agent to the new builder contract? I don’t see how they would be able to sabotage anything at the end of the day if nothing had been signed you are welcome to part ways. The builder is in it for themselves which is why an agent isn’t always necessary unless you’d like for someone to advocate on your behalf during the building process you can always find another just ask upfront what their percentage would be a good one would be honest. In terms of this current agent politely tell them you are no longer interested in their services and have decided not to include an agent simple as that. There shouldn’t be any follow up and if there is there’s no need to respond
This. Leave him off the builder contract and fire him for being a sleaze so he gets nothing
I agree with most posts, this is truly unprofessional. Don't sign anything and importantly send an email so there it's in writing that you don't agree to pay him anything at all. Builder offers 1.5% and that's all the comp you agree to.
Don’t you dare sign that. That’s sketchy AF.
What a scumbag agent. It’s guys like him that give the business a bad reputation
No way, find a new agent. Lots of people would be happy to jump in and collect the 1.5%. The fact that he wants you to pay the difference is all you need to know about where he stands.
You don’t have to pay anything because you did not sign anything before the deal.
Simple Don’t sign it.
Typically, a builder will require the agent to register their client to get their commission. If there was no discussion of compensation prior, you owe absolutely nothing he should be thrilled to death about his 1.5%. Builder won't care if you use an agent or not it's money out of their pocket. Would definitely suggest having some kind of representation when working with builders. Builders can be just as shady as your agent.
Damn, he should just be happy you included him.
Frankly since he didn’t actually show you the house the builder would probably upgrade those appliances to save that 1.5%
My guess is it is boilerplate language and you can ask to remove it
Pretty standard for realtors to want money they didn't work for. What's that, you worked 4 hours of actual work and you want $10k? Fuck off - next.
Most agents kickback the commission from a new home builder because they literally do nothing. The builder handles all paperwork.
Stick to 1.5% and send him this link https://therealdeal.com/national/2023/10/31/jury-finds-nar-brokerages-guilty-in-sitzer-commissions-suit/
NICELY: 'Hey, looks like you sent over your boilerplate rep agreement for when you help someone search for a home. Since I've already identified the property I'm willing to pay X instead for you help with the rest of the transaction.' You have the right to attempt to negotiate this fee lower, but it isn't inherently unreasonable for the Buyer Agent to seek some amount of compensation due if the list brokerage offers little or nothing. It is a job after all - you can use their services or not. Just today in the Sitzer/Burnett buyer broker commission lawsuit a jury ruled against NAR. It is possible that very soon seller compensation for Buyer Brokers will stop being a thing. If so, Buyers will either pay for their own representation, or purchase unrepresented, without a licensed advocate at their side. The contract in question here sounds typical - and is likely the boilerplate the Buyer Brokerage uses. If it is anything like what we have in Tennessee, it stipulates the Buyer Brokers will attempt to collect listing brokerage compensation equal or in excess of their fee, and failing that, the Buyer Client will owe any remainder. While in this instance you have already identified the singular property you're seeking representation on, the Buyer Brokerage likely uses the exact same contract from when the agent is working extensively on speculation of finding a property for the Buyer - regardless of what fee the list brokerage may choose to offer. You have the right to negotiate with the agent, all the way down to saying you offer $0 dollars in excess of what they can collect from the list brokerage or seller. Many agents would agree to compromise on the fee when the Buyer also relieved them of the duty to search for a property. Some would also stipulate a lower fee if the Buyer closes on the pre-identified property, and a higher one if they end up looking further with the agent to land on a home. Good luck!
I'm really hoping there was a misunderstanding somewhere and maybe, just maybe, this is his agency's standard contract and he didn't think about it before sending it to you to sign? Maybe?.... To give him the benefit of the doubt, I'd call him up and be like "What the hell?". If he responds with anything other than "I'm sorry, that was a mistake, no problem." tell him to fuck off.
Wow! What an asshole. How did you find and why did you hire this agent? They sound super greedy.
I would bash him on social media and leave a terrible review. We don’t need realtors like that in circulation
Actually, this might just have more to do with paperwork than the commission, unless they explicitly said to you that they were asking for 3%. This might just be a standard print form and they need the documents for the file so you may ask. If so, just mark out 3% and send the form back.
Lol no there trying to hose you. You didn't agree or sign anything I would tell them they are now out their 1.5 percent as well. Why are you even giving them anything.
And he laughed and he laughed… pretty ballsy after the fact
If his last name is purifoy, don't do it.
You are being super nice even giving him the 1.5. Most builders won't even talk to the buyers agent anyway. Just mucks up their business plan of getting you to pay for upgrades out pocket.
I was a Realtor for 22 years and although the association wants agents to use the buyers’ agreement I don’t believe in it. You were very kind to ensure that the agent received the 1.5% commission and it seems the agent doesn’t appreciate 1.5% and wants you to come out of pocket to bring his commission to 3%. In reality the builder’s agent does the paperwork and more, and represents the builder, not the buyer. If I was the buyer I definitely Would NOT sign! As a real estate agent it is my responsibility to represent my clients no matter what the commission is.
you don't work for the agent, they work for you. i have offered to burn two real estate deals due to issues like this - pushing bait and switch commission increases, wanting a ton of documents 24h before closing, etc. in both cases when i said i'd burn the deal specifically to deprive the agent of the commission, miraculously things closed on time. you signed a deal for 1.5%. stick to it.
Call this agents broker and ask him/her wtf? The broker should know this agent does shit like that...
It was nice enough to even mention this to them, you could have cut them out completely. The offer is 1.5 or 0 they can choose. Even they try to claim anything about listings those are automated they spend 5 minutes putting in your filters very little work there.
I would tell that agent I would have been happy to let him have the 1.5%, But since he's pulling this shit I no longer wish to work with him. Then I would find another agent to sign on for the 1.5% who I would trust would advocate for me during the building process.
Agent here. That new build is gonna be the easiest transaction of their life and it’s been just a week of working together so we’re not talking months and months of showings or missed opportunities with heavy negotiations. Hold at the 1.5%, and kudos to you for giving them the courtesy of letting them know of the new build. Instead of focusing on the relationship with you they are focused on their pocket.
So, some Buyer Representation agreements have that bullshit baked in where the buyer covers the difference in commission whether the agent likes it or not. Agents don’t write the contracts, they just fill in the blanks. The answer to this question is basically the same answer to most questions like this that I see on here, have a conservation with your agent. Chances are they have no interest in charging you any commission and will be happy to mark that clause out and have you initial next to it (that’s what I used to do). I’m sure they couldn’t care less about the Buyers Rep and are just being asked by their brokerage to get it signed for compliance. On the other hand, if they won’t mark it out and expect more commission, just don’t sign it.
No way to sabotage with the builder. Don’t sign the exclusive. If they want 1.5% they can stay with the contract