Legal Question in Real Estate Law in Massachusetts
Recently I posted my house for sale by owner. I got a hit right away and they wanted to see the property. I was asked if they could bring their buying agent with them. I said ok. Well they saw the house and loved it. Put in an offer. But the offer had a 2% clause in there for the Real estate agent to be paid by the seller. The agent never during the showing announced or disclosed that she would charge a commission to the seller. I had to refuse the offer mainly because of that clause. Is this practice ethical by realtors? If I had known before hand I would have refused to allow they realtor access to my property.
3 Answers from Attorneys
Congratulations on getting an offer in this real estate market! My first reactions to your question are that (i) a realtor's fee of 2% is slightly lower than the average, (ii) most buyers have real estate agents, and by refusing to pay a realtor's commission, you are missing out on the great majority of buyers, (iii) your refusal to allow realtors onto your property while you are trying to sell your house seems counterproductive.
I strongly recommend that you retain the services of an attorney to assist you with this sale. My real estate colleagues charge a flat fee, and it could make a huge difference in your home selling experience.
It is not unethical. You have two alternatives in such a situation, you can counter by simply increasing the counter offer by adding an additional 2.1% of the net price you want to get, such as if you want $100,000 and you were offered $95,000 with a 2% commission, then counter at $102,100 and disregard the commission.
I would suggest you get an attorney to assist you. Most attorneys will assist you for a flat fee.
Please feel free to contact me if you have additional questions without obligation.
Congratulations. You have a right to refuse to pay the buyer's agent. Let the buyer pay their own agent if they are working exlusively for the buyer and not you. Good Luck!