Also on another matter. There is another condo for sale now. This unit is being sold by the owners. I've seen the inside of this unit at a public open house initiated by the owners. But I'm a little confused about the real estate brokers involvement in the sale, and how the commissions are paid at a closing. Perhaps you have more information on how a transaction like this works, and a buyers position. I am interested in the unit. If I don't hear back from you before, Happy New Year.
Dear Ms. Doe,
Thank you so much for contacting me. I hope that your holidays were fabulous, and filled with visits with friends and family. It is such a festive time of year.
The condo in question is not a for sale by owner (FSBO) - it is being marketed on the state and local mls by a discount broker. For a lower fee, this company will market the unit in particular venues, and open houses are done by the owners if desired. The real estate broker in question gave you a call, since you did not indicate to anyone there that you were already working with an agent - me. Whenever you go to an open house alone, if you have signed an exclusive buyer's agency agreement with an agent, you should always identify that agent at the open house. This not only helps your agent assist you better, but also helps the listing agents know that there is already an agent in charge to answer your questions. As you already know, it is always better to have representation separate from the seller's agent.
Since this is listed on both the local and the state mls, the listing agent has already signed an agreement with the seller for a commission for both listing and buyer agents to be paid at closing by the seller. You will need to communicate with your buyer's agent, work out an offer, and submit it through your agent. She will also (with your input) negotiate on your behalf, and guide you through the entire process through closing and beyond.
If, on the other hand, this HAD been a FSBO, as I explained over the phone earlier, your Exclusive Buyer's Representation Agreement would have come into play. One of the things we went over initially, very carefully, was the case of the FSBO. If you had gone into that open house, and spoken at great length with the owners, I may not have been able to after the fact collect a commission. The owners would have said that I was not the procuring cause in your purchase. This is why it is important to stay in touch with me, and at the very least, tell the owners that I am your agent. If this had been a FSBO, and you had not told them about me, (in the event that you purchased this unit,) you probably would have been charged the commission for me, the buyer's agent, by my company at closing.
This entire part of the process seems to be very confusing to all concerned. You are not alone in your questioning.
Have a wonderful New Year's celebration, and we will see you next year!
I hope this answered your questions about Exclusive Buyer's Representation, FSBOs, and Discount Brokers.
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This article has been written by Dagny Eason.
Feel free to call Dagny Eason to discuss this at (203) 762-1700
Dagny Eason | Broker
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