[heartofthecountry]

I know that while working with my regular multiple listing realtor, they will negotiate for me if I am interested in a house. But how does this work with a Villages sales agent? That is, do they only represent the sellers? How does a potential buyer negotiate if they all work for the sellers? Thank you

[frayedends]

Originally Posted by heartofthecountry

I know that while working with my regular multiple listing realtor, they will negotiate for me if I am interested in a house. But how does this work with a Villages sales agent? That is, do they only represent the sellers? How does a potential buyer negotiate if they all work for the sellers? Thank you

They don’t work with buyers agents and don’t offer commission to buyers agents. For new construction they don’t negotiate at all. The price is the price and they don’t allow contingencies. They have it down to a science to protect their interests. That being said I have seen the timelines stretched a bit even though they act as if it’s so set in stone they won’t budge.

If it’s a resale through VLS then you could try for a better price. They should present all offers to the seller and the seller decides what to accept.

[Laker14]

If you're looking at a home listed by The Villages, then the only way you can have an agent working for you is if you pay that agent yourself, out of your pocket. The Villages Real Estate people do not share commissions. Period.

[retiredguy123]

Originally Posted by heartofthecountry

I know that while working with my regular multiple listing realtor, they will negotiate for me if I am interested in a house. But how does this work with a Villages sales agent? That is, do they only represent the sellers? How does a potential buyer negotiate if they all work for the sellers? Thank you

MLS agents and Villages agents typically work for the seller, not the buyer. I would never expect any agent to negotiate for me as a buyer unless I was paying the agent.

[Laker14]

Originally Posted by retiredguy123

MLS agents and Villages agents typically work for the seller, not the buyer. I would never expect any agent to negotiate for me as a buyer unless I was paying the agent.

If the MLS agent is showing you homes not listed by them, or by their agency, you can sign a contract that identifies them as your fiduciary agent. In that role they have obligations to you, the buyer, they would not have if they were the listing agent or closely associated with the listing agent. It's very clear in the contract.
They are paid by a cut of the commission, not as a separate financial transaction from buyer.

[vintageogauge]

If you find a pre-owned home that you like listed by The Villages you can make whatever offer you feel comfortable with just as you would on a MLS home. The sales agents are paid a commission and want to sell the home and will present your offer to the sellers.

[retiredguy123]

Originally Posted by Laker14

If the MLS agent is showing you homes not listed by them, or by their agency, you can sign a contract that identifies them as your fiduciary agent. In that role they have obligations to you, the buyer, they would not have if they were the listing agent or closely associated with the listing agent. It's very clear in the contract.
They are paid by a cut of the commission, not as a separate financial transaction from buyer.

Under Florida law, all licensed real estate agents must have a fiduciary relationship with both buyers and sellers, but that is not the same as being a sales agent. As a seller, if an MLS agent is acting as an agent for a buyer, I would not allow them to show my house, and I would not pay them a commission. I'm not sure what you are calling a "contract", but a contract requires consideration to be paid by both parties, the agent and the buyer. It sounds like the agent is representing the buyer, but wants to be paid by the seller? No way. The purpose of the commission is to represent the seller in selling the house. If the agent is representing the buyer, that is a conflict of interest. Why should I pay a commission to someone who is not representing me?

[manaboutown]

Although most real estate agents prefer to act as transactional agents some MLS agents will agree to act as buyers' agents, moreso now than in the past. A buyer can sign a buyer's agency contract with an agent or that provision can be written into the purchase and sale agreement. The buyer's agency agreement can be exclusive or nonexclusive. Normally the commission due a buyer's agent is paid out of the proceeds of sale just like that of the seller's agent.

Buyer Agency Agreement: Definition | Rocket Mortgage

Now, given that buyer's agency may be available from some MLS agents I do not know if any VLS agents are allowed to perform as buyers' agents or whether VLS agents can only act as sellers' agents. A phone call to a VLS office may provide you with an answer.

[frayedends]

Originally Posted by retiredguy123

Under Florida law, all licensed real estate agents must have a fiduciary relationship with both buyers and sellers, but that is not the same as being a sales agent. As a seller, if an MLS agent is acting as an agent for a buyer, I would not allow them to show my house, and I would not pay them a commission. I'm not sure what you are calling a "contract", but a contract requires consideration to be paid by both parties, the agent and the buyer. It sounds like the agent is representing the buyer, but wants to be paid by the seller? No way. The purpose of the commission is to represent the seller in selling the house. If the agent is representing the buyer, that is a conflict of interest. Why should I pay a commission to someone who is not representing me?

We can go through this for 20 pages again. But you are misunderstanding how most MLS listings currently work regarding paying the buyer agent.

The seller signs a listing contract with the seller agent with an agreement for commission. Let's say it's 5%. In the contract the seller agent may specify that they will split the commission with a buyer's agent. So the MLS listing says 2.5% to Buyer's agent.

The seller does not have to accept this, and as you have stated, you would not accept that. No problem. Now you have to have a seller agent willing to take less commission (or they keep the whole 5%). The listing will state no commission to a buyer's agent. So folks that look on MLS may see the listing and go see the home, and purchase it, unrepresented. Or they can be represented and pay their agent out of pocket.

The downside here is more money out of pocket to the buyer. Is your house worth the extra? Can the buyer pay the commission out of pocket? Did you lower the price of your home because you aren't paying a buyer's agent? If the buyer needs to pay their agent at closing, do they need a bigger mortgage and will the house appraise? Who knows, but because of the recent lawsuit, this may become more common.

You said you wouldn't show the house to a buyer if they had an agent. That's really going to cut your opportunities. I don't know why a buyer would see a home if they couldn't be represented in the transaction.

[frayedends]

Originally Posted by manaboutown

Now, given that buyer's agency may be available from some MLS agents I do not know if any VLS agents are allowed to perform as buyers' agents or whether VLS agents can only act as sellers' agents. A phone call to a VLS office may provide you with an answer.

VLS agents won't work with buyer's agents at all. They don't act as buyer's agents either. Retiredguy's post pretty much describes how he wants transactions, and that's the way VLS does it.

[manaboutown]

Originally Posted by frayedends

VLS agents won't work with buyer's agents at all. They don't act as buyer's agents either. Retiredguy's post pretty much describes how he wants transactions, and that's the way VLS does it.

That is no surprise. VLS does it their way or the highway. There may be potential liabilities connected with acting as a buyer's agent, the VLS recognizes that, and so it does not allow its agents to act as buyers' agents.

[frayedends]

Yup, for a VLS new construction $2500 deposit to hold and then 10% within 7 days of signing the contract. That's for a new home already built. No contingencies. You drop out, they keep your money.

[retiredguy123]

Originally Posted by frayedends

We can go through this for 20 pages again. But you are misunderstanding how most MLS listings currently work regarding paying the buyer agent.

The seller signs a listing contract with the seller agent with an agreement for commission. Let's say it's 5%. In the contract the seller agent may specify that they will split the commission with a buyer's agent. So the MLS listing says 2.5% to Buyer's agent.

The seller does not have to accept this, and as you have stated, you would not accept that. No problem. Now you have to have a seller agent willing to take less commission (or they keep the whole 5%). The listing will state no commission to a buyer's agent. So folks that look on MLS may see the listing and go see the home, and purchase it, unrepresented. Or they can be represented and pay their agent out of pocket.

The downside here is more money out of pocket to the buyer. Is your house worth the extra? Can the buyer pay the commission out of pocket? Did you lower the price of your home because you aren't paying a buyer's agent? If the buyer needs to pay their agent at closing, do they need a bigger mortgage and will the house appraise? Who knows, but because of the recent lawsuit, this may become more common.

You said you wouldn't show the house to a buyer if they had an agent. That's really going to cut your opportunities. I don't know why a buyer would see a home if they couldn't be represented in the transaction.

I agree with what you said. But, as a seller, I would not allow licensed agents to represent buyers and expect me to pay their commission. I would only pay the full commission to agents who only represent me, the seller. The Florida laws are very complicated, but I don't think the law allows licensed agents to represent both the buyer and the seller before a sales contract has been signed. After there is a sales contract, an agent can act as a transactional agent to facilitate the closing.

[heartofthecountry]

Thank you all for the responses. I was referring to pre-owned homes not new builds.

[kkingston57]

Originally Posted by frayedends

They don’t work with buyers agents and don’t offer commission to buyers agents. For new construction they don’t negotiate at all. The price is the price and they don’t allow contingencies. They have it down to a science to protect their interests. That being said I have seen the timelines stretched a bit even though they act as if it’s so set in stone they won’t budge.

If it’s a resale through VLS then you could try for a better price. They should present all offers to the seller and the seller decides what to accept.

Noted your comments. Is this true when sales slow down(demand lessens)?