Welcome to the Real Estate Forum


The "ORIGINAL" Real Estate Social Network" SINCE 2005 and your #1 Resource for all things Real Estate


  •  »Over 35,000 Members
  •  » Answer Questions From "REAL" Buyers & Sellers
  •  »Ask Questions & Share Stories With Fellow Real Estate Professionals.
  •  »Read Articles & Blogs written by Real Estate Professionals.

...you have come to the right place!


YES! I want to register an account for free right now!


p.s.: For registered members YOUR FORUM NAME is free of ads

Results 1 to 5 of 5
  1. #1
    Ron Williams is offline Renter
    Join Date
    Nov 2009
    Posts
    2

    Default Should I offer to pay agent even though deal fell through?

    Hello,
    I was in the market for a house, but was very clear that it must close before Dec. 31. This was a requirement because I was using part of the money for my down payment toward my tax bill for 2010 (I was self employed for 8 months of 2009 all of which was not taxed) and the $8000 tax credit would offset some of the money I was using. Anyway, it's Christmas Day and there is no chance for this to clear by Dec. 31.

    Here's why it won't go through:
    - The house is a short sale, listing agent claimed in listing that he had bank approval in hand, turns out agent did not have approval.
    - The house needed a single compression valve reinstalled for plumbing to work; however, listing agent never had this repaired.

    Here's what I've done:
    - Paid for appraisal ($425)
    - Paid for inspection ($430)
    - Provided all paperwork/financing paperwork to the point where agent and loan officer said there was nothing else I could do except wait to hear more.

    My agent has been very quick at moving things forward and regularly applying pressure to ensure things were done as needed. We had seen about 15 houses prior to signing a contract on this one. She provided regular updates and in a couple cases kept pressure on me to ensure home inspections were setup/done on time and even called around for an appointment with a company on short notice. Overall, I was happy with the service I received and could not complain one bit.

    While I really like the house, there is no way I can afford my upcoming tax bill and get the house after Dec. 31 because I need the 8000 credit for my 2009 tax year bill.

    Finally, the question I have is: should I pay the agent for their services or should I not since they're usually paid on commission?

    Edit: I won't be paying the full commission, just a few hundred to cover costs if I was to pay anything.

  2. #2
    landmarkhq is offline Fixer Upper
    Join Date
    Oct 2009
    Location
    Grand Rapids, MI
    Posts
    18

    Default

    Personally, I wouldn't pay unless the transaction went through. If you're looking to thank the agent for their hard work, you could just keep them in mind the next time you want to buy or sell a property. The agent should understand, and if they expect to get paid for a transaction that DIDN'T go through, then that's a character issue.
    We sell land for pennies on the dollar! Check out our listings at www.landmarkhq.com/property

  3. #3
    Greg is offline Moderator
    Join Date
    Sep 2007
    Location
    Outer Banks
    Posts
    1,281

    Default

    Your agent should not have let you pay for an appraisal or a home inspection until you had the bank approval in hand.

    They never should have put pressure on you to perform these tasks especially seeing as you had a deadline to meet. Short sales are always a gamble and most of them never go through let alone in a timely manner.

    Not only should you not pay this agent you need to find another agent.

  4. #4
    Land2sand is offline Renter
    Join Date
    Dec 2009
    Posts
    7

    Default

    If the transaction did not go through then do not pay the agent. Keep aside all the circumstances surrounding your personal situation. Forget any of that ever happened. It's much easier to move on to other properties without baggage.

    1. Drop the agent
    2. Forget about paying them b/c no property was purchased

  5. #5
    PreviewOrangeCounty is offline Condominium
    Join Date
    Nov 2009
    Location
    Mission Viejo California
    Posts
    147

    Default

    good points Greg, I have never had a buyer of mine conduct an inspection or appraisal until bank approval is in and escrow is opened.

    With this aside, I wouldn't pay the agent but if he did a good job you can try to refer him a prospective client
    Kevin Aaronson
    The Aaronson Group
    Keller Williams Realty
    949-388-5194

    Orange County Short Sale Information
    View Orange County Bank Foreclosures
    Orange County Short Sale Agent

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •