Quote:
Originally Posted by Pinkgirl
So if a buyer comes to an open house or to really any listing on their own WITHOUT a buyers agent and places an offer to the selling agent- at that point the selling agent can write up the offer becoming a transactional agent? (With sellers permission) My question is will this agent now want the buyer to sign a contract to enter a "Transactional Relationship" thereby guaranteed buyers commission from that person?
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First, let's assume, that the seller has NOT agreed to compensate a buyer's agent. If the agent at the Open House is in fact the listing agent in a Transaction Agent role (they don't just "become" a Transaction Agent"), and the potential buyer is NOT represented, that listing agent is required to get a Buyer-Broker Agreement signed by the Buyer before they can write anything up. Basically, by writing up the offer, they have to discuss terms of the offer with the buyer and some details, so they take on a representative role. Now, with that said, because they are in the position of listing agent and will be getting some agreed compensation from the seller, they MAY be willing to accept something very low from the buyer - could be 1%, could be $1,000, could be $100, could be $1 - it's all negotiable.
If, on the other hand, the seller has agreed in the listing agreement to offer compensation to a buyer's agent, then it's between the seller and the listing agent as what has or will be agreed upon IF the listing agent handles both sides as a "Transaction Agent". It may be zero, it may be the full amount the seller agreed to in the listing agreement, or it may be something in between. If that's the case, the listing agent will want the buyer to sign a broker-buyer agreement with the compensation being whatever the listing agent and seller have agreed to, and then the agent acting as "Transaction Agent" could include a request for concessions in the contract to cover that amount.
Now, if the agent at an Open House, is NOT the listing agent as is often the case (although usually with the same brokerage), then they would still need a buyer to sign a buyer-broker agreement to write an offer. If the seller hasn't agreed to compensate a buyer's agent, the Open House agent MAY not have as much negotiating room on what the compensation might be from the buyer - again all completely negotiable. If the seller has agreed to buyer agent compensation, then the agent can request concessions to cover that - BUT how does that affect the overall negotiation process?
My colleagues probably won't like this, but it's not a bad strategy to go directly to the listing agent IF you are experienced and know what you are doing. BUT, understand that 1) it's not as cut and dry and easy as one might think under these new rules, and 2) the buyer won't get full, "Single Agent" level representation (although lots of buyers don't care nearly as much about that as NAR thinks they do especially IF it comes to compensating their agents out-of-pocket, even if by doing so it could, big leap "could", lower the price of the house). Sorry, I let an opinion or two slide in there.