Profile picture for Sarah J1

What % will agent get if one part owner sells to another?

House is co-owned.  One owner wants to sell, other wants to buy him out but they cannot agree on a price, so house was put on the market.  Agent's fee is 5%, 4% if agent represents buyer as well as seller.   Now there is an offer on the table and second owner is willing to match, but we are not sure what fee the agent will be due.  5% or 4% on all or half of the price? 
  • November 21 2013 - US
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Answers (3)

Profile picture for SteadyState
This is an exercise with many difficulties as you described..Here are some of the flaws with the way the process is organized:
1. There is an incentive for the agent to offer a fictional high price if he/she knows that one of the owners will buy out the other
2. Just because a buyer offers a specific price does not mean the buyer can or will buy the property at that price -- the loan may not get financed,  or there may be repairs that need to be performed, etc.

Possible other process:
If 4% of the sales price is excessive
1. Take the home off the market. Pay the Realtor for his/her time.
2. Hire two appraisers to appraise the property and take the value as the mean value
3. Go to an attorney to ask them what they will charge so that one partner can buy out another partner. Negotiate with the attorney for a flat fee and get them to do the transaction.
  • November 21 2013
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I think 4%, but it's not up to me. 

Here's the reasoning - the agent exposed the property to the market, which brought the buyer who established the price. As they are representing the buyer and the seller, then the 4% would appear to stand.

All the best,
  • November 21 2013
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Profile picture for wetdawgs
This is something you need to talk about with the agent.   No one but you and the agent know details about the contract you signed.
  • November 21 2013
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