I found a homeowner who wants to sell their house to me directly. Is it wrong to ghost my real-estate agent?

We’ve been approached by someone who is going to sell their home, but is not on the market yet. They want to sell to us directly as a home for sale by the owner. We are OK with that. 

However, we are also looking for advice on how to fairly compensate our real-estate agent for the work they have done so far.

What’s the best option for us? Is it wrong to ghost my real-estate agent?

Fortunate 

Dear Fortunate,

The clue is in the question. Ghosting does not treat others with respect, and does not give them the explanation they deserve. Tell them the truth. Explain your situation, and have an open and honest conversation. You will feel better for doing so.

It’s great that you found a home, and one that is directly sold to you by the owner. That will save you thousands of dollars in commissions and fees that you don’t need to pay real-estate agents, so that’s a big win.

Typically, when a home is sold, the listing agent and the buying agent each get a 3% commission, both of which are paid for by the seller. The stage is set for the buyer’s agent to no longer automatically receive a 3% commission. 

Last month, a Missouri court found the National Association of Realtors and two real-estate brokerages guilty of conspiring to inflate real-estate commissions, a decision that will likely have a deep impact on the U.S. housing market.

Negotiate a fee

Just because you found a house by yourself doesn’t mean you should ghost your real-estate agent. They scoured through listings for you, took you to 20 open houses, and even helped you put in two offers. For that work, you should think of how you would want to compensate them. And you seem to agree.

Have you signed anything that would require you pay them a commission if you find a house? Typically, sellers sign such contracts for a period of around six months.

Obviously, if the seller was using a real-estate agent, it would make no difference: The seller’s real-estate agent would simply have to split their 6% commission with your agent. 

Assuming that the seller does not have a real-estate agent, you could negotiate a fee for the services provided by your real-estate agent thus far. Have a number in mind — say 2%, slightly less than the fee they would have gotten — and see if you and your real-estate agent are comfortable with it. 

Enlist your real-estate agent’s help

But here’s another route that could be a win-win for the both of you: Consider keeping them until the transaction is finalized, and make that 2% contingent on them providing those services.

After all, real-estate agents do more than just setting up open houses and showing you the property. They can help you with paperwork, purchase agreements, contacts, schedule inspections and appraisals; help you find multiple lenders; and help get you a good mortgage rate. Plus, they may be able to spot any potential red flags that you would’ve overlooked. 

“I would recommend formally utilizing their [agent] in the transaction, with a negotiated fee paid by the buyer at closing,” Erin Sykes, chief economist and real-estate wealth adviser and broker at Nest Seekers International, told MarketWatch. 

“This gives the buyer protection as the Realtor will have their best interest in mind, doing due diligence, and they gain the benefit of full representation,” she added. 

Putting a value on time

The leverage you have is goodwill: They are getting something for their time, but they also have no other option. Many other people would simply ghost their real-estate agent, buy the house and run.

Ultimately, if you decide that you don’t want to pay your real-estate agent for not playing a role in closing on your new home, then that’s your prerogative. You can choose to not pay them a dime.

But remember this: How would you like that if the tables were reversed? Is their time not as valuable as yours? And is this the kind of karma you want buying your new home?

This week’s Big Move question was spotted on Reddit.

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‘The Big Move’ is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage.

Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Aarthi Swaminathan at [email protected].