Home Buying in Reading>Question Details

Jim Stokovsky, Home Buyer in Reading, PA

Buyer Agent Representation - Jim Stokovsky

Asked by Jim Stokovsky, Reading, PA Wed Oct 24, 2012

Are there Realty Agents out there who is interested to work with new home buyer (who will build a new home) - willing to share the buyer agent's comission?

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I'm not 100% sure I know exactly what you're asking - are you looking for a Buyer Agent representative who will represent you as the Buyer in a new home transaction but will give you half of their commission the Builders listing agent in return?

The reason I ask is twofold: (a) If you are the buyer and are financing the purchase through a lender, ALL buyer commission "rebates" have to be disclosed to the lender, and have to be shown on the settlement statement - and if the lender will not allow the rebate to be shown on the closing statement, it CANNOT be paid to the buyer outside of the closing either. Lenders often permit certain percentages of the purchase price to be offered as incentives to buyers. Once they have met the defined percentage, a buyer is not permitted to receive further incentives in the transaction under the loan as approved. Buyers should be alerted up front that they will only receive such a rebate if the lender allows it. Because it will affect the lender’s calculation of loan-to-value ratio for buyers’ loans, the lender may not permit the buyer to receive the rebate.

(b) a Buyers Agent is a professional (like a lawyer or a doctor) who gets paid for all the man-hours they put in representing your interests, meeting with you, attending inspections with you, and for all of their real estate expertise in all the various aspects of the negotiation - and as in almost all professional situations, you get what you pay for. Having someone work for you while they're paid half of what they would normally get paid is a dangerous way to set about buying the most important asset you will ever own.......I'm sure you'll find people who will do it, but is it a good decision on your part?

Plus, it is never a good idea to hire someone (especially in real estate!) based on how little pay they will accept - I strongly advise you to ask your friends, family or co-workers for their recommendations as to realtors they've worked with, and then sit down with a couple of them in their offices and literally interview them, to see how much expertise and experience they have with new home construction and with representing buyers (there are buyer agents who exclusively represent buyers, and agents who mostly list houses for sellers and don't have a lot of experience representing buyers.) THEN make your decision - since the buyers agent commission is paid by the seller, it doesn't come out of your pocket, and it would be much better to have someone representing you and willing to help you through the entire house building process without having to worry that they're only giving you half the assistance they would normally give because they're only getting paid half of what they would normally get!

Good luck with your new home purchase!

Valerie Mackey, REALTOR
Cell: 610-207-0172
Office: 610-670-5900, EXT. 7542
0 votes Thank Flag Link Wed Oct 24, 2012
You need to see if your state allows sharing and if there is a maximum, in addition if teh buyer is getting a mortgage, it has to be approved by the buyers mortgage company. When it comes to new construction, a good buyer broker who is well expereinced can easily guide you through the building process and get you discounts, comps and upgrades at cost or even free in some cases. When you start looking for discount brokers, you may end up with a discount service which could cost you money in the end which more than wipoes out your small rebate.
0 votes Thank Flag Link Wed Oct 24, 2012
Jim - Feel free to contact me directly, my info is listed below. I would be more than happy to work with you.

Coldwell Banker Select Professionals
0 votes Thank Flag Link Wed Oct 24, 2012
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