1. Welcome to AppraisersForum.com, the premiere online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Buyer is agent and still collecting gher 3%

Discussion in 'General Appraisal Discussion' started by redfish, Jun 22, 2011.

Thread Status:
Not open for further replies.
  1. redfish

    redfish Senior Member

    48
    Sep 2, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Michigan
    I need opinions on this.

    Mr X is purchasing a house for 200K with 3.75% in seller paid concessions. Sally high heels wife of Mr. X, is representing her client, her husband as the selling agent and collecting her commission of 3%, according to the contract. The husband is the only person listed as a buyer and the contract clearly discloses that the husband's wife is the selling agent and that she is collecting 3% commission.

    This is where I need opinions:

    It's obvious why her name is not included in the contract as a buyer.

    Would any of you consider this a non-marketed oriented/non-arms length transaction?

    Does that commission represent anything besides a commission? Kickback cash back etc.?
     
  2. Lakefront boater

    Lakefront boater Member

    0
    Jul 9, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Michigan
    Well if your wife was an agent and your going to buy a home do you think you wouldn't have your wife write the offer and collect a commission?

    I don't think there is anything funny about the transaction from the info you presented.
     
  3. USPAP Compliant

    USPAP Compliant Elite Member

    2
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    If disclosed to all parties and not a violation of state law.....not an issue. I have collected a commission on several dozen sales where I was the buyer and "selling agent" at the same time. Without my commission I would not have bought many of those properties. Disclosure covers most situations.
     
  4. David Mescon

    David Mescon Senior Member

    4
    Nov 12, 2009
    Professional Status:
    Retired Appraiser
    State:
    California
    If the commission didn't go to the buyer's wife it would probably go to another realtor - either way, the net to the seller is the same, so it's no big deal.

    I just think your jealous because Sally looks better in stilettos than you do. :)
     
  5. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
  6. smackodu

    smackodu Senior Member

    0
    Aug 5, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    There is no way you can twist it into a sales concession...but it is a good question. If the realtor discloses in writing they are crediting part of their commission back to buyer it must be noted in the appraisal report.
     
  7. panappr

    panappr Senior Member

    11
    Dec 5, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Exactly, I'm currently buying units with an agent and she's most definitely collecting the fee... unfortunately it's not 3%.
     
  8. Greg Parker

    Greg Parker Member

    0
    Mar 20, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    We've had my father in law acting as the broker on everything we buy. Would rather keep the commission in the family. If the wife still had an active sales license, I would most likely go the same route.
     
  9. USPAP Compliant

    USPAP Compliant Elite Member

    2
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina

    No twisting required. I am a licensed real estate broker. When I see a property I might want to buy....I call the listing agent. If I want the property I will make an offer becoming both the buyer and the buyer's agent

    As the buyer's agent receive what ever sales commission was offered in the MLS, on the listing agreement or as agreed between myself and the selling agent.

    The commission breakdown of how much to whom is shown on the HUD-1 and this is done on a daily basis in many, many places.

    This is never an issue until someone who KNEW what the commission was going to be....decidesrhet don't like the way it is divided.
     
  10. J Grant

    J Grant Elite Member

    377
    Dec 9, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    This is legal unless it is certain REO properties which state in the listing that a realtor buying for own use is not entitled to a commission.

    In any case from appraiser's point of view it does not affect sales price and is not a concession, if 6% commission is typical, and 6% paid, it is not appraiser's concern which agent got how much even if one of them happens to be the buyer.
     
Thread Status:
Not open for further replies.

Share This Page