What to do when seller backs out?

Question

I have been working with an investor friendly agent. She found me an off-market property, everything checked the boxes and when I told my agent to get all paperwork to get the offer. The sellers doesn’t want to move forward because she doesn’t want to pay the agent commission, instead want to sell her on her own.

I offered to split the commission in half with me, and I would pay for her moving expenses.

If my above offer doesn’t work, is there any other strategies you guys have used to convince a seller to move forward?

Russell Brazil · Answer

Increase the price by the amount of your agents commission, then add in a seller subsidy for that amount. Seller subsidy becomes a buyer paid commission.

Dan H. · Answer

Just in case it is not obvious to the OP, this method allows the OP to finance RE agent commission.  Agent gets their compensation, seller gets their required price post commission, OP pays virtually none of the commission up front (at 80% LTV, 0.6% upfront (assuming 3% to your agent side)).  Spread over 30 years the remaining 2.4% will be negligible in the monthly payment.  Everyone gets what they desire.

Account Closed · Answer

What I actually said was to renegoiate the purchase price to a lower amount to cover the difference of the agent's fees. Instead of buying at $100,000 you renegotiate to $95,000. The seller rarely will walk away from a sure sale.

Account Closed · Answer

Sure, have the agent step aside, renegotiate a new & lower contract and pay the agent from the money you saved.

Dustin P. · Answer

So your agent found you the deal, you did nothing, and you don't want to pay your agent a commission? I'm a little lost on that one

Joe Norman · Answer

If its a good deal then pay your agent the commission they earned by sourcing it for you (generally around 3%). I'm sure you'd pay a 3% wholesale fee, right?

Will Barnard · Answer

Exactly!

Bud Gaffney · Answer

@Alvaro Rodriguez. Nothing. Move on to the next 1

Michael Plante · Answer

I don’t understand why an agent would bring you a deal knowing the seller wasn’t paying a commission without telling you that you would be responsible for their fee

Alvaro Rodriguez · Answer

@Michael Plante

No I have not, but she is the one who found the deal and the one that manages my properties.

What to do when seller backs out?

Most Popular Reply