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Cindi Hagley,…, Real Estate Pro in San Ramon, CA

Have you ever been offered an alternative to a cash commission?

Asked by Cindi Hagley, Prudential, San Ramon, CA Fri Aug 17, 2007

A deed to a home, an automobile, etc?

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In 1994 I was offered a second mortgage on a vacant lot by a buyer, in order to reduce his cash to close down payment requirements. I hesitated because I needed the cash, and he came up with it. (they still live in that house)

I did the due diligence on the vacant lot, during the negotiation, and would have accepted it, as the value, the LTV, the terms, and the marketability were all good.

I recently wrote a commercial lease where barter from the represented tenant was entertained as part of the deal. As it turned out, the landlord also wants the bartered goods and services, so I get cash for my commission anyway.

Sometimes, the willingness to be creative and imaginative (while obeying all codes and laws) is enough to help the deal move along to a conclusion. - Neither deal might have happened if I hadn't shown that wilingness to at least consider an alternative.
0 votes Thank Flag Link Sat Aug 18, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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Notes... Boats... or Goats!?!

In 1989 - 1991 it was a fairly common occurance to be creative with the commission, especially with foreclosure sales.

I bartered all or part of the commission on many transactions.

Examples:

I traded my side for braces for my step-daughter on one deal.
1950 Dodge pickup truck in pristine condition.
1963 2-door Mercedes convertible.
1957 42 foot live-aboard boat with slip docked in Stockton.
Equity in a 1 bedroom condo at Adams Point in Oakland.
Note against another property.
Jewelery and contractor services.

I re-sold the items. The seller took the trade items in some cases.

Whatever it takes to put deals together.
1 vote Thank Flag Link Tue Aug 21, 2007
My answer would probably be similar to Deborah's. I have seen in our area bonus' that are in conjunction with a property being in escrow by a certain time period, or closed by a certain time period. Usually a chunk of cash, but we have been offered a week in Costa Rica, cars, etc. I have never had the opporunity to have the right buyer at the right time for one of these, so I don't know what the broker would do in the case of trips or "stuff"! That's the kind of silly thing with these bonus'. If we had a buyer for the property, we would have probably taken them there anyway- and if you don't, you can't pull one out of a hat to get the bonus!

Patti Phillips
800-680-9133
Your San Diego County Realtor
1 vote Thank Flag Link Sat Aug 18, 2007
In most instances, if an agent received an item such as a car, the agent would need to pay cash to their broker in an amount equal to the share split. Additionally, the agent would be responsible for taxes. In most states you have regulations about payments going through the broker.

After all is said and done, it is much easier and cleaner to simply pay cash.

I have seen bonuses offered such as trips, extras cash, gift certificates, and plasma televisions. These offereings were in addition to the buyer agent commission. Often they had time limits associated.........i.e. for an acceptable contract before x date. I have only seen non-cash offers associated with bonuses, never the base compensation.

Would be interested to hear what others say? Does it interest you? Do you think non-cash compensation is good? As base pay? As bonus?
1 vote Thank Flag Link Sat Aug 18, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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In the early 1980s when cash was somewhere between scarce to non-existent, I had an artist for a client. He paid me in atr work he had done. I sold some, traded some for second trust deeds (which were VERY high-yield at the time!) and kept some. I still have about 5 paintings today and they are holding nicely. Ah, those were interesting times!
0 votes Thank Flag Link Tue Sep 1, 2009
I heard about someone receiving an HDTV from a cash-poor guy who owned a stereo shop in lieu of commission.
0 votes Thank Flag Link Mon Nov 12, 2007
There are a lot of discussions about commissions, rates, splits and what not and of course none cash offering. I wonder if in this slower market, for a very demand client with set mind on the commission rate, would it be wise to negotiate upfont saying that we will accpet a certain commission (depends on what you are comfortable with and what your brokerage requires), but if we do an outstanding job, then we would like to have a bonus for that deal. This will all be spelled out, of course.

This is a very common practice in all other businesses (salaried, none salaried, construction, stcok broker, ...,etc), where if you do a great job, exceeds the expectation, then you get a bonus, a raise, or whatever.

Just to clarify, I work for a very large (proudly, #1 in Marin) real estate company with very high standards, strict rules and regulations that we have to follow; so this is a completely out of the box thinking purely for discussion purposes.
0 votes Thank Flag Link Sat Aug 18, 2007
Sylvia Barry,…, Real Estate Pro in Marin County, CA
MVP'08
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Cindi,
Where do you come up with these questions?! I personally have never been offered anything but cash! I do think it would be a little harder to split an object with your broker. I doubt most brokers would allow it. Although it would be interesting to hear if someone has been offered something else and what their outcome was.
Web Reference: http://carriecrowell.com
0 votes Thank Flag Link Sat Aug 18, 2007
Interesting question.....would you like to share more?
Web Reference: http://pamwinterbauer.com
0 votes Thank Flag Link Fri Aug 17, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
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No and my brokerage probably won't allow that.
0 votes Thank Flag Link Fri Aug 17, 2007
Sylvia Barry,…, Real Estate Pro in Marin County, CA
MVP'08
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