Excluded Buyer on Realtor Contract

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Mar 23rd, 2021 4:18 pm

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Mar 22nd, 2021 9:27 pm

BobW [OP]: Deal Addict; Nov 21, 2004; 1659 posts; 103 upvotes

Mar 22nd, 2021 9:27 pm

Excluded Buyer on Realtor Contract

I'm looking to list my house for sale through a realtor (a GOOD realtor) however I do have one potential buyer that I've had discussions with to date and their more or less waiting to sell their current place before making an offer. So, in an ideal world, it'd be no big deal to put their name on my listing contract and if they ended up being the buyer (obviously a small chance, but realistically not that big a chance) there'd be no commissions paid out.

Before I approach the subject with our realtor later this week, anyone have experience (either seller or agent) with this?

I'm of the opinion that if our excluded buyer did actually buy the place, I should owe something to the realtor for the stager, photos, promo materials that they generated as well as something for the time they put in... what's fair? accepted practice?

Thanks.

6 replies

Mar 22nd, 2021 10:42 pm

oasis100: Deal Fanatic; Mar 27, 2004; 6116 posts; 4013 upvotes; Toronto

Mar 22nd, 2021 10:42 pm

you're going to get more money on the open market. period

Full-time Realtor

+1

Mar 23rd, 2021 11:41 am

IrfanP53614: Member; Jul 19, 2018; 219 posts; 120 upvotes; Mississauga

Mar 23rd, 2021 11:41 am

oasis100 wrote: ↑ you're going to get more money on the open market. period

If the buyer agrees to pay the market price he might be better off saving specially if he ends up saving commission from both sides.

I do recommend going with a realtor if you are not sure if the buyer will go ahead with the purchase.

Yes most likely you will need to pay your realtor for the staging, photos , promo material and also his time.

Mar 23rd, 2021 3:00 pm

oasis100: Deal Fanatic; Mar 27, 2004; 6116 posts; 4013 upvotes; Toronto

Mar 23rd, 2021 3:00 pm

IrfanP53614 wrote: ↑ If the buyer agrees to pay the market price he might be better off saving specially if he ends up saving commission from both sides.

I do recommend going with a realtor if you are not sure if the buyer will go ahead with the purchase.

Yes most likely you will need to pay your realtor for the staging, photos , promo material and also his time.

you really can't tell what market price is. things are changing week to week

Full-time Realtor

+1

Mar 23rd, 2021 3:15 pm

IrfanP53614: Member; Jul 19, 2018; 219 posts; 120 upvotes; Mississauga

Mar 23rd, 2021 3:15 pm

oasis100 wrote: ↑ you really can't tell what market price is. things are changing week to week

Agreed! But if the buyer is will to pay more than the last sold similar unit I dont see how he will be losing money. Also, as long is the seller is happy with the price he is getting that is what matters at the end of the day. Will be saving on the commissions, staging costs and the hassle to be dealing with showings in times of Covid.

Mar 23rd, 2021 3:22 pm

Tailwind72: Member; Jun 1, 2019; 225 posts; 295 upvotes

Mar 23rd, 2021 3:22 pm

BobW wrote: ↑ I do have one potential buyer that I've had discussions with to date

Since the advent of the internet, pocket/specific-arrangement buyers has lost almost any advantage for the seller. In this crazy-hot seller's market such as we're in now, any seller is quite ill-advised not to get their property onto MLS and take the highest bidder. If the highest bidder happens to end up being buyer you've been in contact with, their winning bid is likely to have gone higher due to the fact that you listed your house, put it on MLS, had lots of showings, and created competition. For this, your Realtor [and their brokerage, and MLS, etc] should be paid.

If you are overly-concerned about commission fees there are plenty of lower-commission, full service brokerages that will get your property onto MLS, do a 3D Matterport tour, etc.

Full Service Realtor
Niagara / Hamilton-Burlington

+1

Mar 23rd, 2021 4:18 pm

BobW [OP]: Deal Addict; Nov 21, 2004; 1659 posts; 103 upvotes

Mar 23rd, 2021 4:18 pm

To clarify a couple of assumptions...

1) I DO plan to use a realtor, we've discussed list price as well as expected sale price. Any deal with an excluded buyer would have to net out better (and not marginally) for me to consider it.
2) This is Calgary, not TO... our market is nowhere near as overheated
3) We really don't have "discount" brokers here... commission rates are high; having said that, I have no problem paying the going rate for a top tier realtor... look at MLS listings... you can tell pretty quickly just from photos who is going hard and who is going through the motions on a listing....

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