Am i right to be upset? What should i do? Realtor tried to screw me...

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shortskoolbus_IHB

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Basically long story short is during the negotiations with the sellers we wanted a $2k allowance for a new garage door and dishwasher. The seller didn't want to give it and my agent said she would give us $500 credit instead, since we were pretty insistent on getting something out of it. This was done verbally over the phone. We agreed to it and accepted the counter from the seller. The agent hasn't brought it up since and tomorrow we are closing escrow.



Is this ethical what is being done and what do you recommend?



The email chain is below.



A few points to consider:



- Escrow is closing tomorrow

- She admits to "vaguely remembering" the conversation, meaning she is not denying it

- In the part when she states "As I think you are aware", we definitely were NOT aware! This is complete news to us.

- Her and the other agent work for the same brokerage office. Is there some fishy business going on here?

- IMO, she didn't contribute anything to my home. She CHOSE to give a concession to the seller, which has nothing to do to me. She is trying to make it seem as she saved me $5k by doing what she did, when in fact that's not the case at all.



Need your guys opinion on this.... The walk through is scheduled for tomorrow, but i plan to write a strongly worded letter to her tonight unless you advise otherwise. I don't know if she still has the ability to screw me or not at this point, so i am a little careful.



------------------------------------------------------------------------------------------------

<strong>Original Email from Me</strong>



From: Me

Sent: Tue 6/16/2009 9:49 AM

To: My Realtor

Subject: Credit







Hi My Realtor,



You had mentioned that you would be willing to give us a credit for a few hundred dollars when we were negotiating the offer with the current owners and wanted to ask for an allowance for the garage door and dishwasher.



Today I will be wiring in the final monies for the closing costs, but wanted to understand how that credit would work and confirm the amount of that credit.



Thanks









<strong>Realtor Response</strong>



Hi Me:



Well, I vaguely remember that conversation, but we didn't discuss it any further, so I hadn't planned on contributing anything more.



As I think you are aware, both the listing agent and I have already contributed $2,500 each of our commission so we could get the price to where you and the seller needed to be to make the transaction work. In other words, you wanted the house for a maximum of $850K and the seller wanted $855K, so the listing agent and I both contributed $2,500 to make the deal work for you and the seller.



I do feel that this is a sufficient amount of money to contribute towards the purchase of your home, so I hope you understand when I am hesitant to give up any more of my salary.
 
Chalk it up to a flea on an elephant's back. Not worth your time and the trouble you'll go through to get it. Write it off as a lesson learned and next time get it in writing immediately.



Now go enjoy your house!
 
At this point it's not about the dollar amount, I just don't like getting screwed. I want her to at least know that it's unacceptable what she did, she can't just verbally say anything to get us to sign the offer so she can close the deal and then renege on it..
 
Are you seriously worried about 2K on an $850K purchase? Forget about it. There are more important things in the world to think about.
 
You are not getting screwed. Let it go. It's a $500 verbal contract. You will not get it, and if you back out now, it may cost you a heck of a lot more than $500. I think it would best if you relax and enjoy your new home. Just my opinion, but you asked.
 
I agree with everybody else-it's not worth canceling the deal over. You realtor was probably lazy and forgetful as opposed to actively trying to screw you. We are talking about only .24% of the purchase price at the most ($2k), .06% at the least ($500).
 
Contact the broker aka your agent's boss. Forward the email to him/her and call him/her to discuss it. I am sure something can be worked out.
 
I'm not considering backing out of the deal over the $500.



But you guys are suggesting that i just drop it? I shouldn't even bother to call the agent out on it?
 
[quote author="shortskoolbus" date=1245248782]I'm not considering backing out of the deal over the $500.



But you guys are suggesting that i just drop it? I shouldn't even bother to call the agent out on it?</blockquote>


You should see my post above. You should call the broker out on it. I hate it when someone goes back on their word, regardless of whether it is $500 on a $850k transaction, or $1 on a $20 transaction. If you really want your money, then do what I suggest and you will most likely get it.
 
[quote author="shortskoolbus" date=1245248782]I'm not considering backing out of the deal over the $500.



But you guys are suggesting that i just drop it? I shouldn't even bother to call the agent out on it?</blockquote>
Sorry to hear about what happened. Speaking as a realtor, I think you shouldn't just drop it. It's the principal of the matter. Discuss the matter further with the agent. If that doesn't get you anywhere, contact their broker (assuming they aren't a agent/broker). Also, if the agent indicated that they would give you the money outside of escrow you can use that against them by threatening to report it to the Department of Real Estate (all commission contributions need to be done through escrow). I can't speak for other agents, but I provide my buyers a signed agreement indicating that I would contribute a portion of my commission into escrow on their behalf of the buyer/s before we open escrow (in my case, we are talking about thousands of dollars) so my buyers don't have to worry about what has happened to you. Good luck.
 
[quote author="usctrojanman29" date=1245249542][quote author="shortskoolbus" date=1245248782]I'm not considering backing out of the deal over the $500.



But you guys are suggesting that i just drop it? I shouldn't even bother to call the agent out on it?</blockquote>
Sorry to hear about what happened. Speaking as a realtor, I think you shouldn't just drop it. It's the principal of the matter. Discuss the matter further with the agent. If that doesn't get you anywhere, contact their broker (assuming they aren't a agent/broker). Also, if the agent indicated that they would give you the money outside of escrow you can use that against them by threatening to report it to the Department of Real Estate (all commission contributions need to be done through escrow). I can't speak for other agents, but I provide my buyers a signed agreement indicating that I would contribute a portion of my commission into escrow on their behalf of the buyer/s before we open escrow (in my case, we are talking about thousands of dollars) so my buyers don't have to worry about what has happened to you. Good luck.</blockquote>


[quote author="graphrix" date=1245249194][quote author="shortskoolbus" date=1245248782]I'm not considering backing out of the deal over the $500.



But you guys are suggesting that i just drop it? I shouldn't even bother to call the agent out on it?</blockquote>


You should see my post above. You should call the broker out on it. I hate it when someone goes back on their word, regardless of whether it is $500 on a $850k transaction, or $1 on a $20 transaction. If you really want your money, then do what I suggest and you will most likely get it.</blockquote>






Thanks. I think that's what I will do. It's not about the dollar amount at all, but yes about the principle. I will close the deal anyway tomorrow, but give the agent a chance to rectify the situation before letting her Broker know.
 
Short Bus -



Did you have an agreement with your agent to have them contribute some of their paycheck towards your purchase, before you opened escrow?

Why did he/she come up with that difference?

How did he/she get the other broker to do the same?



-IR2
 
[quote author="shortskoolbus" date=1245250418][quote author="usctrojanman29" date=1245249542][quote author="shortskoolbus" date=1245248782]I'm not considering backing out of the deal over the $500.



But you guys are suggesting that i just drop it? I shouldn't even bother to call the agent out on it?</blockquote>
Sorry to hear about what happened. Speaking as a realtor, I think you shouldn't just drop it. It's the principal of the matter. Discuss the matter further with the agent. If that doesn't get you anywhere, contact their broker (assuming they aren't a agent/broker). Also, if the agent indicated that they would give you the money outside of escrow you can use that against them by threatening to report it to the Department of Real Estate (all commission contributions need to be done through escrow). I can't speak for other agents, but I provide my buyers a signed agreement indicating that I would contribute a portion of my commission into escrow on their behalf of the buyer/s before we open escrow (in my case, we are talking about thousands of dollars) so my buyers don't have to worry about what has happened to you. Good luck.</blockquote>


[quote author="graphrix" date=1245249194][quote author="shortskoolbus" date=1245248782]I'm not considering backing out of the deal over the $500.



But you guys are suggesting that i just drop it? I shouldn't even bother to call the agent out on it?</blockquote>


You should see my post above. You should call the broker out on it. I hate it when someone goes back on their word, regardless of whether it is $500 on a $850k transaction, or $1 on a $20 transaction. If you really want your money, then do what I suggest and you will most likely get it.</blockquote>






Thanks. I think that's what I will do. It's not about the dollar amount at all, but yes about the principle. I will close the deal anyway tomorrow, but give the agent a chance to rectify the situation before letting her Broker know.</blockquote>
Almost forgot to mention, the contribution from your agent should be done via an Addendum to the Offer and needs to be signed by both the buyer and seller.
 
I compeletly understand the feeling of feeling screwed by your agent on this. Regardless it is a matter of principal or matter of $500, I really don't think you should let that ruin this moment. At the risk of offending others here, you shouldn't have high or even normal expections from a real estate agent. If they are good, let them surprise you, if they are not good,then that is you are expecting. Use this as a lesson learned for next time: protect yourself by having something in writing always. If it is a verbal agreement, shoot him / her a quick email.



That being said, this is what I will suggest: you should call your agent, and tell her that you are not happy that he backed out of his verbal contract. Tell him that :

you have been happy with his services (if that is the case), until he backed out his verbal contract / promise

you dropped your allowances demand because he stepped up.

you didn't ask him to chip in, and he didn't have to. he volunterred for whatever reason.

You expect him to follow up on his words, as this is about professinalism

You are not about to cancel the escrow on this.

He can decide if he thinks this is the right way to end your otherwise pleasant expereince with him.

Ask him to inform escrow the right amount to wire.



Lastly, you should always get a copy of the closing doc TODAY to review it, so you can get rid of junk fee ahead of time.
 
[quote author="awgee" date=1245272706]Anytime someone says, "It's the principle", it is the money.</blockquote>


That's a very jaded point of view. Wasn't there a pastor running a food bank/councilling service a few years ago that refused a huge donatiion from a lottery winner, saying he couldn't take the money because it contradicted what he taught his members, that wasting their money on lottery tickets was bad? What about the struggling father with several kids a few years back who found a suitcase of money (think it was a few hundred grand) and turned it into the authorities, saying he couldn't keep it and explain to his kids where it came from and teach them that stealing was bad?
 
[quote author="awgee" date=1245272706]Anytime someone says, "It's the principle", it is the money.</blockquote>


Anytime someone says "It's not for sale", it means your offer isn't high enough.
 
For anyone doing the math, the total commission on this deal is $51,000. The two agents are getting $25,500 each. If they are giving up $2,500 (10% of their cut), they are still making $23,000 each on the transaction.
 
OMG, she was able to negotiate the purchase price down $5,000 and is getting compensated $23,000 for it Maybe she earned the $23,000 in other ways but I doubt it. I'm amazed someone would risk their professional reputation over $500. At least you can take comfort in knowing that $500 is going to cost her THOUSANDS in lost business through your bad word of mouth.



Don't get mad, get even!
 
[quote author="IrvineRenter" date=1245281601]For anyone doing the math, the total commission on this deal is $51,000. The two agents are getting $25,500 each. If they are giving up $2,500 (10% of their cut), they are still making $23,000 each on the transaction.</blockquote>


Another reason we need fundamental changes in how real estate properties are being transacted.
 
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