[retiredguy123]

I think that some real estate agents in The Villages are trying to have their cake and eat it too. They want to lock in a 6 percent commission by getting a seller to sign a listing contract where the seller agrees to pay the commission at closing. That is fine because they are establishing a legal agency agreement where they represent the seller to market and find a buyer for their house. No problem. This is very legal and transparent. But, then, they establish another relationship with potential buyers for the house, and they “pretend” that they are representing the buyer and acting as agents for the buyer. I know this because I have heard many buyers refer to real estate agents who are showing them houses as “my agent”. I believe that some licensed real estate agents are being deceptive. They should inform buyers and make it absolutely clear that they are not a buyers agent, and that they are an agent for the seller and that they represent the seller only. They are sales people for the seller. The term “agent” is a legal term, and it does not apply when describing the relationship between a real estate agent and a potential buyer. I think that the real estate business needs to become more open, transparent, and honest when they are interacting with potential buyers

[kstew43]

there are 3 types of Realtors

1-Buyers agent......represents the buyer finding a home

2- Sellers agent......represents the seller selling his home

3- Transaction agent.....works for the sale, and can represent the buyer and seller....impartially and assisting both.

As a Florida Realtor you are obligated to have your clients sign a transaction form and have the seller/buyers aware that the agent may possibly represent a buyer/seller for the home.

The villages agents are not Realtors,or members of the board and they do not always have all the Realtor Board Rules

[Velvet]

How can you tell if you have a transaction agent if you are dealing with a Realtor? If you are the buyer.

[manaboutown]

Originally Posted by Velvet

How can you tell if you have a transaction agent if you are dealing with a Realtor? If you are the buyer.

Obtain a signed written statement of the form of representation from the agent. Buyer's agency agreements are common now. Try to get a nonexclusive agreement from an agent in case you want to change agents or use more than one.

[retiredguy123]

If the buyers agency representation agreement does not require the buyer to pay any money to the agent, then it is not an enforceable legal contract. This is basic contract law.

[manaboutown]

Buyer-Broker Agreements: 3 Types of Contracts When Buying a Home | realtor.com(R)

[Velvet]

I guess I don’t quite see it. If a seller pays full commission to the listing agent, then that agent can’t become a transactional agent. Right?

[JimJohnson]

Would it be better to list your home with an agent that will represent you and list your home on the MLS.

What gets more exsposure, the Villages Listing System or the World Wide Multiple Listing System?

My opinion is, if selling, use An outside Agent; thereby, the MLS.. If buying new you have no choice but to use the VLS. All realtors outside will contract for 5% and a short time contract with no early cancelation fees.

They both have the honesty of a used car salesman, but, they are both required to provide the service in accordance with Florida realtors laws.

[dewilson58]

The industry seems very open and transparent if you just take 5 minutes to understand.

[ColdNoMore]

FSBO's eliminate...a lot of these issues.

And these days, thanks to the good old interweb, going that route...is easier than ever.

I've always considered the 'suggested standard' of paying 6% by the seller (sometimes a bit less, typically by those a little more desperate)...as analogous to 'unwritten collusion.'

Oftentimes an agent will under-price your home, because quite frankly the difference in their commission between say $350K and $325K isn't all that much ($1.5K) and is a secondary issue, compared to getting a quick sale (and thus a quick paycheck)...which can outweigh the piddly little extra in commission.

NOT so piddly to the seller ($23.5K LESS to seller)...of course.

Here's an interesting opinion piece...on the practice.

Why Do I Have to Pay My Real Estate Agent 6%? | Credit.com


Having said that and in the interest of being fair, sometimes when a house is a tough sell (for a lot of reasons) and if the agent spends time/money marketing your home and pushing to get top price...the 6% might be well worth it.

[OrangeBlossomBaby]

I don't know how the agents got paid when we bought in The Villages. The seller had their own agent. We had an agent assisting us in the buying process. And a third agent was the one conducting the transaction at the office. I know they all got paid, and it didn't cost us extra, so it really doesn't matter from my end.

As a seller in Connecticut, how it typically works (with exceptions): 6 or 7% is a usual max commission. The selling agent typically will ask for 6% but allow for a lower % if the buyer comes with an agent representing them. The total percentage is split with the seller's agent getting the largest proportion. A lawyer conducts the transaction. I don't remember who pays the lawyer - pretty sure we did, the last time we sold a house up north (we haven't listed our current home yet, that's coming in a couple of months).

[kstew43]

getting paid is valued in your previous sales or your contract with the broker you work for.

the commission is divided within those parameters. the better the sales, the higher the commission.

[Velvet]

Anyone know how the agents are paid in TV, the ones who work for the developer?

[valuemkt]

For the sale of our house in Atlanta we have set a list price, and expected sale price and a minimum acceptable price. The realtor we've chosen has agreed to a performance based fee schedule that is set a 5% of the minimum price, 6% of the expected price price, and 6.8% of the list price. The commission is based upon sales price - any concessions - any improvements: essentially net proceeds before closing costs.
This prevents the ongoing issue of the realtor only losing $ 600 in commissions for every $10,000 in price. In this case, they would lose $3,333 .. which is real money to them .. If we get 100% of list, we'll be happy to turn over more than the common 6% fee as a bonus.
The "expected" price is 97.5% of list, which is what he claims is his average. The minimum is 95% of list.

Sounds complicated, but it puts some skin in the game for them, or as he says, a performance based compensation ..

[Velvet]

I was asking how the agents are paid who work for TV because a very conscientious person showed me a lot of properties. I wish I could have bought one of them. But I found a place on my own I liked better. Just thinking have I wasted his time?