By Gary M. Singer, Sun Sentinel –
QUESTION: I am trying to sell my age-restricted condominium for $25,000. Every real estate agent I speak with wants to charge a flat fee that is higher than the 6 percent commission that I was expecting. Can they do this?
—Pat
ANSWER: Yes. There seems to be a growing trend among real estate agents charging a flat fee on lower-end homes rather than a percentage-based commission. Your contract with a real estate agent to sell a house is just that: a contract, and as such it is subject to negotiation. The industry standard is for agents to charge a commission based on 6 percent of the sale price. But with homes or condos valued at $50,000 or less, agents may not feel they’re being compensated enough to justify their time and energy in getting the property sold — especially if they have to split the commission with another agent involved in the deal. So some agents will instead ask for a flat fee.
It may actually be to your advantage to pay it, even if it’s more than the 6 percent commission you anticipated. People naturally work harder when they feel that they’re being fairly compensated. Because the commission is negotiable, you will need to weigh the pros and cons of paying your agent more and come to a compromise. By the way, the “transaction fees” that many agents charge in addition to the commission also are negotiable.
Q: After reading a recent story about homeowners staying in their houses after selling them, I would like your thoughts on this subject.
—Bud
A: I think post-occupancy clauses should be avoided as much as possible because the process is fraught with potential traps. Problems can occur if the seller fails to move out on time and needs to be evicted; if the seller damages the house; or if someone gets hurts while visiting the property, possibly subjecting the new owner to a lawsuit.
Sometimes, though, there are circumstances that make post-sale occupancy unavoidable. In these cases, I recommend making clear disclosure to any lenders involved, having your lawyer prepare a detailed post-occupancy agreement between the buyer and seller, and holding some money in escrow to ensure the sellers move out on time and leave the property in good condition. If you can’t do any of this, it’s best to extend the sale date so that the seller can move out before closing.
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ABOUT THE WRITER:
Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program. Send him questions online at http://sunsent.nl/mR20t7 or follow him on Twitter @GarySingerLaw.
The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction.
… I visited the home of an old frneid in San Diego about two years ago when the housing bubble was in full bloom. My frneid boasted that his middle class home, which had been purchased about a decade prior for slightly over $300,000., was then worth at least triple what he had paid and headed into the million dollar plus category. He laughed at my suggestion that home prices were in a bubble and said that it was outrageous one could dare to think that San Diego home prices could ever plunge.I doubt that he’s still laughing if he took a look at yesterday’s Union Tribune. He’ll be laughing even less if the downward spiral continues, but at least he didn’t pay the bubble price of recent years like so many suckers.___________________________________This is all great but one question?Did he use the ATM?Check the garage for clues.RayNLA