Can My Agent Still Get a Commission If I Saw It At Open House?

Question

Apologies if this is answered somewhere but if so I can't find it.

If I view a property with the listing agent, does that prevent my agent getting a commission on the sale?

I'm pretty new to this so I want to have an agent represent me in negotiations and the offer. There's an agent we are talking to and want to start a relationship with. When we told her that we're interested in a property that we had viewed (at an open house), she stated that if we'd already seen it with the listing agent she wouldn't get a commission if we did an offer through her. It's probably the property we're most interested in but I don't want to deal directly with the listing agent.

She is the expert and why would she cut herself out of a deal? But it just doesn't seem logical to me, so looking for advice.

I'm in Maine if state laws differ.

Thanks!

James Wise · Answer

If I was holding an open house and some people came through then the next day they submitted an offer to me through their own agent I wouldn't make a stink about the commission either. Whether or not they told me they had an agent at the open house wouldn't really matter. Not worth the fight. To many bridges to burn and to many problems. Some agents don't feel that way though.

Jake Thomas · Answer

@James Wise This has happened twice to me as the buyers agent and a few times as the Listing agent. My clients that I have shown several houses to decide to take it upon themselves to go to a few open houses. I have no idea if my clients stated they were working with me to the listing agent or not. Wrote up an offer the next day and it was accepted. The LA never thought twice about it and never said anything to me about it. On the flip side I have held open houses and people came through with no agent and an offer shows up in my email the next day. My goal of an open house is to sell the house at the end of the day, not to try to make a case that I deserve the entire commission.

@Lee Rutty based on my examples above I think your agent is incorrect. If you really like that agent sign a exclusive agreement with them and have that agent write the offer. I don't see how the listing agent can make a case since they don't know if a contract between you and the agent you like existed before the open house anyways.

Lee Rutty · Answer

Wow, lesson learned. Thanks for the info, @James Wise and Amy A.. Appreciate it.

Rob Milliken · Answer

The agent showing the property is working FOR THE SELLER your buyers agent is Representing You. If you  have a buyers agent then you should have their phone number, see if they can join you to the open house or else let the Listing agent know that your agent will be in contact later with an offer.be sure to make it same day, for someone else may put in an accepted offer.

If the listing agent is not willing  to share commission then they are only working for the seller if it suits them and now that isn't really working for them is it

James Wise · Answer

If you view an open house without your agent present you should let the listing agent know you are working with an agent during the 1st few moments of the conversation and give the listing agent the contact info or business card for your agent.

If not the listing agent can make the case that they were the procuring cause for the sale and not your own agent.

Jacqueline Loaiza · Answer

We listed our home with commission to Buyer's Broker. However, potential buyers are coming to our Open Houses without the Broker or even a case where the Broker just sent the Buyers to look for Open Houses and to let her know if they find something.  To me, this is not professional on the Buyer's Broker side. I don't see the Buyer's Broker actively looking for a property for her client.

Lee Rutty · Answer

Thanks for all the replies and advice. We haven't yet signed a Buyer's Agent agreement with anyone. We are still searching for that perfect match. In the meantime we are researching, analyzing deals and educating ourselves about the market. That includes visiting some properties on our list. In fact, we met the agent we're talking to now when we asked for a showing of a property she had listed. It already had offers (they came in after we arranged the showing but before we got there) .

Lots to think about.

Joel Owens · Answer

The reality is in residential you have many agents that are hand to mouth to survive. That may be one or the only listing they have.

In the MLS under private remarks some brokers or agents put for residential agents if we show the property to your client you get 1% type stuff. Do you think that really helps the listing brokers sell the property? NO

The buyer broker or agent reads if they are this big of a PITA from the beginning then they will not even present the property to their client as a possible match. We can debate ethics and all of that stuff but the reality is other brokers and agents do not want to deal with difficult people for a transaction like that.

Should a listing broker get mad about finding out they have an agent? NO as long as it was the one time in the beginning of the process. If you get way down the road with the deal and the buyer decides THEN that they want somebody that can cause a huge issue.

A way to curtail this upfront is a buyer signs an agreement stating they are not working with anyone else currently and that they will be a customer of the listing broker etc. and not a client. Language would also be present that if the buyer later on decides they want to be represented then the buyer will be responsible for the commission. Sometimes brokers or agents try to drop in at the last second which we call "parachuting" in the business. They do very little at the end and then want half the money. It doesn't work that way.

Buyers who have a broker or agent in mind should simply tell the listing broker they are represented or if they do not have anyone that they will want to be represented for their side. Some buyers think they are fine just being a customer but then later want to be represented when they feel like in negotiations they are being taken advantage of.

The reality is most deals are not double ended. If a huge portion of your deals are double ended then you are not marketing the properties correctly for your clients. Talk to builders who sell a lot of houses. The stats will say that co-op with buyers brokers is a huge part of selling out a development.

Amy A. · Answer

I just took a class on this.  She's right.  You could still have her write the offer and try to get the listing agent to pay the commission, and it's likely it will work out that way.  However, you should be prepared to pay the buyer agent whatever commission you agree to in the buyer agent contract if the listing agent refuses.

Can My Agent Still Get a Commission If I Saw It At Open House?

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