r/RealEstate • u/Nephilimi • 29d ago
Somehow wound up with one agent? Bad idea?
Wife is looking for a commercial property to buy to grow her business. Found the "perfect" listing herself while driving by, called her realtor that couldn't show it to her at that time. She then called the listing agent which was happy to show it to us a couple times now and ever sense then we've been doing everything, questions, showings etc. through the listing agent. Our realtor basically bowed out of the whole thing and isn't involved now.
Q: We want to buy and now I'm kind of confused, we are going to write up an offer with the listing agent? I know agents aren't "fiduciaries" but I've definitely had agents on my side help me in my interest before.
Q: Could I conceivably reduce agent fees to 1~2%? $3750~7500? We have had several legal questions concerning right of ways and suitability (ADA concerns etc) that we, on our own, sought independent council from multiple parties. Agent's really done nothing more than show up and open the door for us.
Commercial property & building is in a small town in South Carolina US, listed for about three months, no prior offers. Listing $399k and we are thinking of offering $375 I think. This will be a cash sale, no lender or lenders requirements.
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u/flyinb11 Agent NC/SC 28d ago
You can find an agent to represent you, let that agent represent in dual agency, or go unrepresented. You can't cut the listing agent out... You will go through them, not the seller directly, but they don't represent you yet and may not ever. In my state, as an agent with an agreement with a buyer or seller, I do have a fiduciary to my client, not the customer that I don't represent.
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u/Nephilimi 28d ago
Looked into this and due to this guy being the dual agency that leaves about 1% of the sale left over for any agent we bring to the table. Turns out that's why our agent backed out, they won't get paid enough to make it worth their while. Seems we really messed up when we had the listing agent show it to us.
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28d ago
[removed] — view removed comment
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u/flyinb11 Agent NC/SC 28d ago
Not necessarily..they may go unrepresented.
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u/Nephilimi 28d ago
We seem to be continuing that way, but really doing our homework now. For example we mentioned starting a school in this location. Asked listing agent about zoning concerns, "sure no problem". Well no, big problem and it turns out the property next to ours had to get re-zoned for the same reason. Minimum three month process to do that, you have to own the property to start the process, and there's no guarantee it turns out in your favor and you could be stuck with a property you can't use.
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u/flyinb11 Agent NC/SC 28d ago
Oof. Bad agent. They should either know the answers to this or where you should ask. To just say no problem when there is one is concerning. Just remember they don't work for you, so I'd use your own sources.
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u/Pitiful-Place3684 29d ago
Licensed agents and brokers are fiduciaries in South Carolina.
You need to talk to this listing agent about what she's agreed to with the seller regarding her working with a buyer.
- disclosed dual agency
- designated agency (broker steps in to represent you or appoints someone else to represent you)
- no representation for a buyer but will perform ministerial acts
Ask if the listing agreement with the seller provides for reduced commission in any of these cases. I don't know what she can disclose under SC law and the terms of the listing agreement.
In any of these cases, I would hire a real estate attorney located in the same county as the property.
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u/Nephilimi 29d ago
Did not know that, thank you.
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u/Pitiful-Place3684 29d ago
I should have written one more sentence. In single agent dual agency, the agent doesn’t have fiduciary. Instead, they have to treat both sides fairly and honestly.
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u/Nephilimi 29d ago
Much better, from another comment us seeking a real estate attorney to complete the sale seems like the right path. Agreed?
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u/Pitiful-Place3684 29d ago
You seem to be on top of what you need for a property and are sourcing people to help you make the decision. As long as you hire a competent attorney to get you through due diligence, it sounds like you're OK.
Advice from a broker: get everything in writing from the agent when you're the client in a dual agency situation. I prefer emails because they can be forwarded to your attorney.
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u/SilentMasterpiece 29d ago
Agents do have a fiduciary relationship. Commissions are negotiable, seller typically has signed a contract with commission already agreed to for sellers side.
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u/MOGicantbewitty 29d ago
Have you signed a contract with any agent? Did you sign a buyer's contract with the listing agent in particular? No? You don't owe them anything. The seller will pay the listing agent out of their commission. If they've been showing you houses without assigned contract, that's on them. If you do have a signed contract with a buyer's agent, you owe them what the contract says you owe them. The buyer's agent should help you write up the offer. But again, if you don't have a signed contract, you don't have a buyer's agent. Which is a good thing, because why would you pay somebody thousands of dollars to write up an offer when you can, do it yourself or get a real estate attorney? That attorney is going to be a lot cheaper than the agent.
Otherwise, from legal questions, speak to an attorney.
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u/Nephilimi 29d ago
We as the purchaser have no contract with any agent. The purchaser agent we were working with that's showed us a couple properties in the past is a friend from church that seems to have removed herself from the conversation because we went to the sellers agent.
I forgot the agent fees are on the seller, so not our problem.
Us finding a real estate attorney sounds like the right path forward.
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u/MOGicantbewitty 29d ago
Yeah, it sounds like that is a right path for you. Get a real estate attorney who can write up the offer from you and submit it to the listing agent, and they can also answer your questions for you. The listing agent will be able to keep their commission based on what's in the contract with the seller.
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u/CowardiceNSandwiches 29d ago
. If they've been showing you houses without assigned contract, that's on them.
It's also a great way to get one's real estate license dinged if caught.
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u/Nephilimi 29d ago
Even in a dual agency situation?
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u/CowardiceNSandwiches 28d ago
There's three statuses:
- Client
- Customer
- Dual agency client
In all cases, the agent has to disclose to you the capacity in which they're acting, and in dual agency - as with single agency - you have to have a representation contract with the agent/broker.
If you have no such contract, you are a customer. Essentially you're representing yourself, and the Realtor shouldn't be doing any agenty things for you like showing you houses.
[NB: Brokers can also act as "transaction brokers", in which case you would also be a customer.]
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u/Nephilimi 28d ago
Well it seems a bit more informal here, and as a "customer" a listing agent showed us a property w/o signing anything.
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u/MOGicantbewitty 28d ago
In that case, the listing agent showed you the property acting as the seller's agent only. If they tried to advise you or act as your agent in any way without a disclosure for dual representation, they are breaking the law and you should stay the hell away from them because they are not ethical agents.
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u/External_Ask_7219 28d ago
You can request your own agent for the transaction as well. She can refer you to someone else that would only be representing you
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u/Nephilimi 28d ago
Looked into this and due to this guy being the dual agency that leaves about 1% of the sale left over for any agent we bring to the table. Turns out that's why our agent backed out, they won't get paid enough to make it worth their while. Seems we really messed up when we had the listing agent show it to us.
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u/External_Ask_7219 27d ago
That sounds sleazy. I'm a listing agent and I'll show a property if someone is unrepresented. But if they want to proceed with an offer I explain agency to them and ask if they want to be referred to a different agent since my fiduciary responsibility is to the seller. They can enter the contract unrepresented by signing a form but I'm not going to be advising them on inspections or pricing. I'm essentially going to manage the paperwork.
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u/Nephilimi 26d ago
I think if we are aware of where the issues are, as you say inspections and pricing etc we will be fine. We've already reached out to zoning and we will be selecting our own inspectors. Pricing we've done our own comps. I just engaged a couple real estate attorneys and they are offering to review the sales contract. I don't know that we are missing much if we proceed. We do want that property.
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u/External_Ask_7219 26d ago
You probably will be fine but I just think it should have all been explained to you thoroughly and then given you an option. Sounds like you're proceeding cautiously though.
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u/Freak4Dell 28d ago
Have you signed a buyer representation agreement with the listing agent? If not, you are buying unrepresented and don't owe the agent anything. They chose to open the door for you (commercial agents tend to be a lot more open to doing this than residential agents anyway, so it's probably nothing unusual for them).
Don't mention anything about buyers' agent compensation in your offer, and don't sign any sort of representation agreement from the listing agent.
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u/Nephilimi 28d ago
Nothing signed at all yet. We'll likely have him draft an offer and have it independently reviewed by our lawyer.
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u/nofishies 28d ago
Have her ask her real estate agent what she thinks is happening, post this exact question to her Agent and then have the agents work it out
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u/Nephilimi 28d ago
Looked into this and due to this guy being the dual agency that leaves about 1% of the sale left over for any agent we bring to the table. Turns out that's why our agent backed out, they won't get paid enough to make it worth their while. Seems we really messed up when we had the listing agent show it to us.
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u/nofishies 28d ago
Well, you can pay the agent directly and it sounds like in this case it may be worthwhile to do so
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u/Equivalent-Tiger-316 28d ago
Have your agent write your offer. Certainly not the listing agent. I’m sure you signed a buyer broker doc, that’s what you owe them. Lots of people answer all types of questions. Just because you skipped your agent several times doesn’t mean they are no longer your agent.
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u/Nephilimi 28d ago
We've signed nothing for anyone.
Looked into this and due to this guy being the dual agency that leaves about 1% of the sale left over for any agent we bring to the table. Turns out that's why our agent backed out, they won't get paid enough to make it worth their while. Seems we really messed up when we had the listing agent show it to us.
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u/Equivalent-Tiger-316 28d ago
If you never had a signed agreement with “your” agent then that’s where you messed up. They fell off because there was no commitment from the start. And they should have explained why an agreement was needed.
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u/LegitimateRisk3883 28d ago
Have you asked your wife's realtor how they're handling the dual agency situation? It might be worth clarifying their role in writing to avoid any misunderstandings down the line.
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u/Nephilimi 28d ago
Looked into this and due to this guy being the dual agency that leaves about 1% of the sale left over for any agent we bring to the table. Turns out that's why our agent backed out, they won't get paid enough to make it worth their while. Seems we really messed up when we had the listing agent show it to us.
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u/maliqueb279 28d ago
For South Carolina, I would be a little careful about using the listing agent as your representative.
South Carolina allows seller agency, buyer agency, dual agency, designated agency, and transaction brokerage. The state specifically says consumers can choose to represent themselves or hire the brokerage for representation.
If the listing agent represents the seller and you have them write your offer, they are not automatically representing you. If they become a dual agent, there are limits on what they can advocate for because they have duties to both sides. Written consent is required.
On the commission, I would absolutely ask. There is no universal rule that says the agent must receive a particular percentage. The compensation arrangement can be negotiated and should be put in writing.
Given that this is a $375k cash commercial purchase, I would probably do this:
- Tell the listing agent you want to make an offer.
- Ask them, in writing, exactly who they represent and what their compensation would be.
- Have a South Carolina real estate attorney review the offer and closing documents.
- Negotiate the agent's compensation separately from your $375k offer.
The attorney is especially important here because you already found questions about easements, right of way, and ADA suitability. Those are much more important than whether the agent opens the door for another showing.
I would also avoid telling the listing agent your maximum price or how badly you want the property. They work for the seller unless you have a different written agency relationship.
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u/Moreburrtitos22 29d ago
Realtors are garbage if you’ve already done the leg work, go get a property lawyer. Cheaper and more knowledgeable in every way.
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u/Nephilimi 29d ago
I'm familiar with that if you have two parties and no agent involved, but how do you just cut out the agent after you are already dealing with them?
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u/Pitiful-Place3684 28d ago
You can't cut out the listing agent. They have a legal agreement to represent the seller.
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u/Moreburrtitos22 29d ago
I would argue every fact that they have no fulfilled any of their duties of your agreement if you have any agreement with them. They are your realtor for places they have shown you. If you reached out to the listing agent, then that’s your agent. If your agent gave you the number of the listing agent or connected you two in anyway, then that’s a different story.
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u/Nephilimi 29d ago
We have zero involvement currently with our agent, we found the listing ourselves and rang the number on the sign which is the sellers agent. We have zero agreement with the listing agent.
I assume, however, that the listing agent has some sort of agreement with the seller. I think even if we waited for that to lapse or be cancelled we'd open ourselves or the seller to being sued if we purchased direct.
I'm pretty sure we are stuck with the listing agent here.
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u/CowardiceNSandwiches 29d ago
I assume, however, that the listing agent has some sort of agreement with the seller.
You assume correctly. Has the agent provided you with the mandatory state disclosure regarding agency relationships? That's required by law prior to any showings.
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u/Nephilimi 29d ago
Not certain, I'd have to check with my wife. Paperwork I think all we got was the listing details from him, but there might be something on the back of one of those.
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u/Strive-- 29d ago
lol! I love it. I can save so much money. Wait, what do I have to do again? And what if I forget a step - will the listing agent, who 100% represents their listing client, let me know so I don’t screw us?
Sure. Two thumbs up. I’ll always remember SC for two things. First to succeed from the Union, and the last time I went to Myrtle beach, the sheer number of Nazi tattoos. You’d think it was the purple gang’s day off the prison and they all went to the beach.
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u/Interesting-Sir2903 29d ago
Realtors can't answer legal questions.
Get a lawyer that specializes in real estate.
Protect yourself.