Located property on my own-realtor wants commission

[Michael R.]

I have a deal worked out with a seller of a property that I located via my direct mail campaign. Then this realtor calls me claiming the property was listed with him and I have to go though him to purchase it. Now I never met him and he never showed me the property. He says I will have to cover sellers closing costs which include his 2k commission. The seller says that she wants to sell to me as it has been listed with him for over 6 months with no offers. Seller says just go ahead with the sale.

What would you guys do? I will speak to my attorney today as well just looking for some other advice. I am guessing if she does sell to me he will take her to court for the commission. I do not see how I would be liable for the commission when I do not have the contract with him, Thanks

[J Scott]

George has some good points -- in the future, you should ask this question, as a seller who has representation will be required to pay commission regardless of how the buyer is found (in most cases).

The bad news is that yes, you will have to work through the agent to buy the property. If he doesn't want you working directly with the seller, it will be difficult for you to do so, making negotiating more difficult and limiting your control.

But, the good news is that you don't owe the agent ANYTHING in terms of commission. Commission is paid by the seller to his/her agent, not by the buyer. So, while the agent is telling you that you need to pay closing costs and his commission to purchase the property, that's just negotiation. You can refuse to pay any seller closing costs or commission, and the seller still has the option to sell to you, though the seller will have to come up with the money to cover those costs.

So, don't be pushed around by the agent. Make the same offer you'd make if the agent weren't present and see what happens. You might be surprised, especially if the seller is desperate to get out...