In a real estate transaction, the contract is between the buyer and the seller. The buyer's agent and seller's agent act as representatives for their clients. The agents help facilitate the transaction so both parties make it to closing.
The seller's agent works out the commission before listing the property for sale. That's a contract between that seller and that agent/brokerage. Within that listing agreement, the listing agent discloses what he will pay to a cooperating agent who brings a buyer to the house. This amount is put into the MLS. The MLS is a contract between agents to cooperate and pay the advertised fee.
If a buyer's agent doesn't like the fee offered, prior to showing the property and prior to writing an offer on a property, the buyer's agent may contact the listing agent and try to negotiate the fee. Sometimes it works, sometimes it doesn't. However, once an offer is submitted on the property, it is against the Code of Ethics to use the commission offered in the MLS as a negotiating tactic to increase or decrease the amount!!
This means, if the seller doesn't like the offer that the buyer submitted, the listing agent cannot change the commission being offered to appease his client. Granted, sellers and buyers are not held to the Code of Ethics like Realtors are, but when it's suggested to counter with a commission reduction, the listing agent should tell his client that he can't do that.
I was just in this situation. I told my buyer what the counter was and how they wanted to take my commission. She was angry. She said, "But you've worked so hard for me, don't let them take your money!" In the counter back, I told the listing agent that first, it was against the COE for him to even ask me to reduce, and second, that my buyer adamantly told me not to reduce.
Bottomline is that the contract is between the buyer and the seller. The agents are doing a job and should get paid for the job they're doing. As the agents involved, we do not partake in any losses the sellers have made on the house, nor do we enjoy any profit when the sellers make a killing. Pay us for the work we've done and honor the contract you've signed!
**Are You Packed Yet?**
Donna Harris, REALTOR®
Donna Homes, Owner
Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Steiner Ranch, Spicewood, Circle C, and everywhere in between… Hill Country Austin TX Real Estateand beyond. Whether you’re buying or selling an Austin TX Home, I’ll be with you every step of the way.
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*Contracts are Between Buyer and Seller. Don't Negotiate my Commission!* was first published on donnahomesblog.com.