Expert: Jessica Bryan - 8/29/2007

Question
Dear Jessica,

My husband and I are selling our condo to our upstairs neighbor who has wanted to purchase our condo for a long time due to health reasons (she is unable to climb all those stairs).  We would like to help her out and hopefully save some money by selling her our condo. She has gotten an agent to sell her condo and asked us to call him to coordinate the selling dates.  During our conversation the agent asked us to pay a 3% commission.  Is this fair? We have already discounted the price to our neighbor by 3%.  We feel by paying 6% commission we are really losing out on the deal as we are taking the risk that we will not get market value but paying as if we were putting it on the market. This is our first home therefore we are unsure of what needs to be done on our side so we are glad to have the help, but we are a little worried about relying on an agent that represents both sides. What would be fair to her, us and the realtor?  Do you think it would be fair/reasonable to hire an agent for 1% to help us facilitate the deal?  Or is that insulting?

Answer
Dear Marcela;
You did not ask for agent representation and did not agree to paying a 'Buyers Agent' as part of the deal.  By adjusting the price to help your neighbor you have given as much as you deem necessary.  If the neighbor wants to have an agent represent her she can pay the agent herself.  This agent should know better than to call you (after an agreement has been reached) and ask for compensation of 3 percent.  For what?  He has not been involved in the sale of your condo and should therefore be  happy to sell the neighbor's condo and nothing more.  As for offering an agent compensation to help facilitate the deal; I suggest that you call someone and ask if they would assist for a small fee. It depends on the price of your condo as to what the one percent fee would be, but I am certain that someone would be happy to accept that as a compensation to assist you in the process and overlooking a successful closing.

Good luck and best wishes,
Jessica Bryan