At a time when so many people are having financial problems, it's is disheartening when you realize that you have been duped. Sellers asking for contribution from realtors is not the norm. Sellers should should be paying the commission. Proceed with caution
Hey Agent, Give Me Your Commission And We Have A Deal!
Sue Mercado's recent blog post brought up a sore point concerning client's requesting commission reductions once the deal is in escrow. In a real sense, agents are often asked to serve as "Daddy Warbucks" and balance the old ledger. Let me share a cautionary tale concerning one of my "broke" sellers...
At the time of listing I did a net sheet for the seller listing all fees and predicted sales price. When the offer came in 5 weeks later we adjusted the net sheet to reflect the actual transaction price. In a panic the seller told me of a "forgotten" second mortgage on the property. Since he was "almost broke" there was no way to cover the spread, without the agents cutting our commission.
And like we often do, I and the buyer's agent cut the fee and headed to the settlement table. 24 hours before closing a shock came in the form of the HUD. It seems my "broke" seller was getting a check for 30,000 dollars!!
"Oh That, well I took out a second mortgage on a rental property. But I really need to pay that back."
In my ignorance, I helped an individual payoff an investment property. Since that transaction, I now view the HUD before agreeing to chip in ANY funds to help with settlement. Even "good people" will lie if it means getting a few extra bucks.
Are there people who truly need assistance? Of course, and for them I generally pitch in. But the vast majority of "broke people" have more money than they let on. Contribute with caution...
Searching for a Top real estate agent in Alexandria Louisiana? Need help selling your Pineville, Louisiana home? Either way call Doug today!
Century 21 Millennium
Century 21 Millennium
donahue Ferry Road
Pineville, La, 71360
Each office independently owned and operated. Equal opportunity housing. Doug Rogers is a licensed real estate agent in Louisiana
C. Lloyd McKenzie, MBA
Berkshire Hathaway HomeServices
New Mexico Properties/Allstar, REALTORS
6739 Academy Rd. NE SU 200
Albuquerque, New Mexico 87109
Areas Served: Albuquerque Metro/ Algodones/ Bernalillo/ Cedar Crest/ Corrales/ Edgewood/ Los Lunas/ Los Ranchos de Albuquerque/ Placitas/ Rio Rancho/ Sandia Park/ Tijeras