Matt wrote in message . ..

I decided to employ an agent to see what else was available on the
market. The agent and I orally made a "gentlemen's" agreement wherein
I would pay him (the agent) standard commission (2.5% of the sale) if
I bought a property that he introduced to me, and something
substantially less then that if I bought the original property owned
by my friend. I took my agent to visit the property being sold by my
friend to have him evaluate its worth and to show him what I liked. (I
also wrote a substantial document outlining my real-estate goals and
preferences and requirements.) Since this agent also has an
appraiser's license, I gave him the offer, if he agreed that my deal
on my friend's property was good enough, to do a formal appraisal
right there on the spot and start the process of my friend and I
cutting a deal...and I would pay this agent the same amount I would
for an appraiser's fee (even if that wouldn't be the last formal
appraisal done).

My agent advised me to look at other properties. After a significant
search that involved approximately 10-12 property visits spread over 2
different showing days, my agent and I decided that the original
property being sold by my friend was the best property available for
me and my requirements. We also agreed that the $235k asking price my
friend had was competitive and reasonable.

I have decided to not seek any help from my agent for any further work
with my purchase of my property (the original property I found myself
through my friend). I am arranging all the lawyer, inspector, etc work
to close the sale myself.

I am not comfortable paying the $2900 my agent seeks. Furthermore, it
may be difficult or impossible for me to drive this expense into my
mortgage loan, because my seller is not that interested in doing it.
This makes for a considerable out-of-pocket expense for me. All in
all, I'm fairly unhappy.

On the flip side, I am quite sensitive to honoring my agreement with
this agent. He seems good, and I was considering having a long-term
relationship with this gentlemen. I have to admit that I'm not yet
certain that I am as interested in a long-term bond with agent after
these discussions have been as uncomfortable for me as they have been
thus far.

Any advice or perspective would be greatly appreciated.
Thanks very much for any help,
-Matt

I can't comment on what the law would say, but I feel bad for your RE
agent.

Who's to say you would have purchased your friends' house if the agent
had not taken you around to see several competitive houses? Sounds to
me like you were uncertain enough that, without the agent's
involvement -- on whatever level -- you may never have purchased it.
Sounds to me like you needed time and a professional's opinion to help
you reach that decision, no? Even if all that you needed was a
*sounding board* to listen to you work out the decision in your own
mind. If nothing else, bringing in the agent showed your friend you
were seriously contemplating the purchase, and gave him reason to hold
off listing it through a broker. If he had done this, then you
would've been out of luck or had to meet a higher listing price.
Right?

Since it's an FSBO, the agent essentially benefited both you *and*
your friend, IMHO, and frankly I think he deserves at least 2.5%. Of
course without a written agreement, he has no legal grounds.

If it were me, I'd go to the seller and suggest that you split the
2.5% and pay him together. Then to get my full money's worth, I'd go
ahead and use the agent to finish the deal... one agent to represent
both seller and buyer.

jen