Commission for arranged sale

**mjr80209** · 03-09-2011, 08:33 AM

hi, i received an unsolicited letter from a realtor stating that he had a client interested in buying a home in my neighborhood. since my wife and i were considering moving in the near future, i responded that i would be willing to allow him and his client to come a take a look. the realtor came by first by himself for a showing. he said that before bringing his client over, he wanted me to sign and 5% exclusive listing agreement with him for his existing client and 6% if it didn't work out and we went to a full listing.

this seems a bit odd to me. 5% seems very high for just bringing someone over and doing no marketing, MLS listing, etc. any opinions? i think that the buyer is for real (apparently the family is living with parents in the neighborhood) and don't want to miss the opportunity but wouldn't something closer to 2.5% be more appropriate? opinions / suggestions appreciated. thanks.

**Greg** · 03-10-2011, 05:14 AM

This is the oldest trick in the book used by agents to get listings. Here is what is wrong with the scenario.

1. This agent has a buyer who they are trying to find a house for so the agent is already a buyers agent. Asking you to sign a listing agreement puts them into dual agency which is unnecessary and wrong in this situation.

2. All that is needed is a one time 'unrepresented seller disclosure and fee agreement' or something similar where you agree to pay the agent half the commission if they really do have a real buyer. This will not commit you to the agent if the buyer does not purchase your house.

3. Some agents will go as far as bringing a spouse or friends for the showing pretending they are buyers. Make sure the agent provides a pre qualification letter from a real lender showing the buyer is qualified to buy your house. If there is no letter then don't let the agent in and don't sign anything.

This agent is either being dishonest or does not know what they are doing when they say you have to sign a listing agreement for 1 showing.

Before you sign a listing agreement talk to a number of agents and find a professional you can trust.

If this agent truly does have a buyer then they will bring the buyer to your house even if you list it with someone else.

**mjr80209** · 03-10-2011, 07:16 AM

thanks greg. that's very helpful. i guess when i think about it, asking 5% is kind of offensive.

**SaltCityBroker** · 03-13-2011, 06:40 PM

All commissions are negotiable. Typically the listing commission is split between the Buyers agent and the Listing agent. So I would imagine that if this agent brought a buyer to you and you represented your
self he or she would charge half of the proposed Listing commission.