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Why should the buyers agent get screwed? Hi Ho Silver, AWAY!

July 18, 2010

Why should the buyers agent get screwed? Hi Ho Silver, AWAY!

Wearing a white cowboy hatA few months back I wrote about “contract purchasers” with short sales. In other words, the short sale negotiator enters into an agreement with the lender to purchase the short sale at one price, the home continues to be marketed at a higher price. If and when an offer comes in the negotiator purchases the home at the lower price, then the same day or following day closes with the end buyer at a higher price. The offer to purchase is signed by the negotiator, all negotiations are done by the negotiator who does not yet own the house. He/she signs and negotiates as the “contract purchaser”.

Many of you agreed with me, those that didn’t agree with me certainly let me know how naive and foolish I was, why shouldn’t the negotiator make this type of money? 20,000, 30,000, I have even seen 200,000 recently on one sale posted in the paper. Wow! That was a great day for someone.

A recent post by Lenn Harley brought this up again with me, so I just had to put on that lousy white hat of mine and race in to start another blood bath for myself I am sure. I think I was accused of wearing a white hat and being a do-gooder, but not in a nice way based on my comment. Although I think someone got my name wrong… or maybe they weren’t talking about me.

When working as a buyers agent it is my job to get my buyers a home at the best possible price… hmmm. Let me explain that one to my buyers.

I have one last question on the matter. The offer of compensation that is out on the MLS is based on the listing contract the listing agent had with the owner of the home, not the contract purchaser. I have seen buyers agents walk away with $700 on a $250,000 purchase. Yes they could have gotten the balance from their buyers. I am playing that scenario in my head….

If the theory is… why should the negotiator and listing agent miss out on this fantastic opportunity to make really good money in the short sale game….

screwmanWhy should the buyers agent get screwed? After all, without the buyer there would be no fat profit for these people.

And where is the protection for my piddling minuscule commission I will end up with? As far as I can see the offer for compensation might be worthless as my buyers won’t be buying from the person who signed the listing contract in the first place. Or should we just write up something before we submit an offer that demands full commission at the closing, because sure as shootin’ the short sale negotiator and listing agent are making money on these deals! And on the backs of our end buyers I might add. You expect me to get money from my buyer after they just overpaid on the home based on what the lender agreed to take?

Hi Ho Silver Away, I would really like to have this explained to me.

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