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The following stories have received the most reader comments during the last 7 days.

• The country's mess is our fault (165)
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• Tokay in, traveling to unbeaten No. 3 Grant for football playoffs (25)
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Purchase offers are for buyers to decide

When seller writes offer, commission concerns arise

In a recent column, a seller wrote in that his agent had a buyer for his house at the full asking price. The only quirk in the deal? The seller -- not the buyer -- wrote up the full-price offer. The seller wanted to know if I had heard of this practice and why it was used.

I thought it was strange, but a number of agents all over the country have responded that this has either happened to them or they have employed this tactic in an aggressive move to get the deal done. Others say this wouldn't work in their state.

There is an undercurrent of concern that this is all about getting the seller to pay the listing agent's commission -- for example, the seller may have entered into a listing contract that requires the seller to pay the listing agent a commission if the seller refuses to accept a full-price offer -- even though the buyer hasn't brought a full-price offer to the door. I'd argue that you'd need a signed purchase contract from the buyer for that.

I received more than a dozen comments. Here are a few, some of which have been edited for clarity or length. I'll post the rest at ThinkGlink.com/blog.

Comment: I think the misunderstanding about the buyer and the full-price offer has to do with the agent's commission. At least in Rhode Island, a seller does not have to take a full-price offer, but the agent has earned the commission if they procure one -- even if the seller refuses it.

Ilyce's take: I don't think there is an offer on the table. The agent said the buyer was willing to pay full price. But as good real estate brokers know, you've got to have an offer in writing for it to be valid.

Comment: Here in California, when a listing is placed into the MLS there is an asking price and buyer's agent's commission (among many other fields) that must be filled in by the listing agent/broker.

Ilyce's take: A buyer's agent can offer any price his or her client chooses (a full-price offer is all the better). And of course the sellers can choose to accept, reject or, in most cases, counter the offer.

In the situation you've described, there is no offer. Whether the agent is representing both the seller and buyer, or the buyer and seller have different real estate agents (i.e. different brokerages) is not relevant.

The home if listed for sale simply needs an offer IN WRITING. If an agent is a dual agent and is "double-ending" the property, the same rules apply -- write up an offer and present it to the seller(s).

Comment: I am responding to your recent question/answer column regarding an agent who told her seller she had a full-price offer on their home.

My understanding is when we offer a home for sale through our multiple list system at a specific price and terms and have a valid listing contract with a seller, the seller is obligated by the terms of this contract.

If the listing Realtor presents an offer (written) at the exact terms offered, the seller may reject the offer but still owes the agent the full commission. If the seller decides to reject the offer, they must take their home off the market for six months through the multiple list system. I don't know if they can then put the house up for sale by owner.

However, I am confused about a couple of points: Why didn't the agent put the offer in writing, and in this market, what seller wouldn't jump for joy to get a full-price offer?

Ilyce's take: I don't think the author of the letter sent has told the whole story, and fair housing law plays a large role in a seller having to sell their home if an offer comes in that meets their price and terms. I am from Michigan and if I brought a seller a written offer meeting all their terms and price, whether they accept or not, I would want my commission.

Comment: I am a Realtor (since 1985) and about 15 years ago, in another downturn market, I had a listing that finally got an offer, albeit a low one. Months later, after several more price reductions, I contacted that agent who said the buyer hadn't bought yet.

So the seller and I put together an offer -- exactly what the buyer had offered months before and presented it back to the agent who took it to his buyer -- and voila! We got the house sold. It was a great story that my manager had me talk about at several other offices in my company.

It's also possible that this buyer just won't get off the fence to make the move. Who knows?

To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center.

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