Anyone have any dealings as a buyer's agent for Auction.com?
I was asked to represent an out of state buyer on a contract for Auction.com. I do work for this client on a routine basis. I was to be paid 1% and I signed the contract as the brokerage for the selling side. I was sent several emails by the title company giving me the impression that we were on track to close and that I was certainly representing the buyer. I received the hud statement and noticed that my brokerage was not on the hud. I addressed this with the title company three times by email why my brokerage was not showing on the hud as the selling brokerage, all it stated was that the selling brokerage was out of state and it was not the amount that I was supposed to get.
Finally I received an email from the title company stating that the closing instructions did not state that I was receive a commission and it was my job to contact Auction.com. HUH? The hud had supposedly already been approved? REALLY?
I sent the person at the title company an email back stating that per contract agreement I was supposed to be paid a commission and regardless of closing instructions the Hud was not correct.
I called the buyer's representative who said she would get a hold of someone at Auction.com and I also called the person from Auction.com who originally contacted me for the contract. He said he would get a hold of the closing department at Auction.com to try to get this straightened out.
One of my agents told me that Auction.com is notorious for stiffing agents and not paying them a commission.
I have worked with them as a listing agent. but the title companies were on top of it and I did get paid.
I have had problems with this particular title company, it is one of those out of state title companies that seems to be impossible to get anything done correctly.
I am totally flabbergasted that this has happened and I am not sure what to think.
I am going to wait until tomorrow to see if this can be resolved, but if it is not, I may need to seek further action.
Can someone let me know if I am out of touch to think I am going to be stiffed and what would my options be other than legal counsel? I do not want to get out of favor with my client, but on the other hand this is just flat out wrong. I feel like I have been had.
Replies
Yes - my mistake. It rolled me into another state when I tried to pin it down.
Here in Tennessee they are now asking the listing agent to list it in the MLS with 0 buyer's agent commission. I know as an auction site, they want to make money, but they are going in the wrong direction.
I think 0% co-op is against NAR guidelines; it is against our MLS guidelines
In Ohio with most boards they are not allowed to do that.
My mistake - when I tried to click on the house, it rolled me into another state somehow. They are licensed.
The auction web sites IMO are wholesale venues to sell under valued properties. Also keeps them out of the MLS for Fair Market Valuations. Which I think is a good thing.
I personally track many homes on Auction dot com to watch when they are going to the court house steps for the Foreclosure Auction. Last year I bought two. Each was at least 50K under FMV. Have tenant in them now.
Auction dot com and Hubzuu dot com can be challenging. The are the ultimate 'buyer be ware" real estate purchases. But if they have an licensed auctioneer in each state, not sure there is much any states Real Estate commission can do.
Take a few pics and upload some minimal information for 1% just don't accept them. That is a decision we each need to make. But don't expect 2 or 3% let alone 5 or 6% to list a property on the auction web sites.
Our business is changing dramatically. We need to change, adapt or be left behind.
Contact your states Real Estate Commission if you are experiences challenges with these RE auction web sites.
Best of luck everyone
I accepted 2 listings from Chase(NRT outsourcer) I did all of the pre listing work, re key, eviction of personal property, BPO ect. then when I received the listing agreement they told me it was going to Auction.com. At that point I had already put time and money into the asset so I wanted to recoup so I took the 1%. Unfortunately they do not tell you it is going to Auction.com until after everything is done and it is ready to list.
yes and this where we as agents need to put our foot down. All free work and then get blind sided. I think asking for a minimum fee is not out of the realm.
I think that may work for investors, but it does not help values overall in this market. I think these auction sites stink and if anything lower values.
Read the information in the box on the auction.com site for EACH listing. Every one is different. It will tell you if there is a commission or not. If it is it is a blazing 1%. Be sure and find out what the minimum commission is.
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