Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Even if your agent only shows you three or four homes and you buy one with a quick closing they will have somebody else that will look at 50 and not buy anything. At least I have had my fair share of those that I think are going to buy something any day and never do. The agent usually pays all expenses driving buyers all over town, pays advertising, mls fees errors & emissions insurance. The broker gets a cut of the commission or the agent pays transaction fees for each sell. Then there are all the office supplies, computers, huge cell phone bills and so on.
If you ask for 1% cash back and the agent is paid only 2.5 or 3% you are taking 1/3rd or more of their pay before expenses. Can you afford to give someone 1/3rd of your gross pay for the privilege of working with them? If you were one of the best in your field would you work for 1/3rd less than the average person in your field?
As the others have said, the work just BEGINS with the selection of a home. A good agent will make sure that you SHOULD be buying in that communiity (is it a financially solvent community? Does future appreciation/resale look good? Does the builder have a good reputation?). They will then help you find a good home inspector to do an independent home inspection (yes even on new homes!), help you negotiate any items that come up, deal with any appraisal issues if they arise, etc., etc...
I once listed a home for someone that bragged that he didn't use a buyer's agent when he bought so he got a better deal out of the listing agent. I tried not to say "I told you so" when he house wouldn't sell because of a large drainage culvert located at the back of his property. A good sellers agent would have have warned him not to buy that particular home--or at least made him aware him of its affect on resale and negotiated more money off the sale.
Using an agent can save you thousands of dollars, future lawsuits, etc. We think of things that could happen that you may never even dream of. Find a good one, use them, and don't begrudge them their commission. We work hard for the money--
Your agent should be doing more than writing the contract - they should:
1. research trends in the area and brief you on that
2. research the community to see how it's been and projected to be
3. research the contract to ensure that your interests are protected - those new construction contracts are heavily skewed to the builder
4. oversee the process and be invloved as/if needed
5. ensure that everything in the contract is upheld and the finished product is satisfactory
and most important - leverage the fact that they can influence the builder's reputation by speaking with other agents. Builders rely on agents to bring them business - a good experience means good reviews which means good business for the builder.
Now, if you want me to give you part of my commission, what part of my responsibility would you like me to no do? You don't pay for representation, why would you expect a kickback? If you think the work is minimal then you should just go in unrepresented and ask the builder's agetn for the kickback, don't waste your agent's time.
I would just get a good agent and have them advise you on the best way to make money on the type of property you want and let them do their job and let them get paid for doing their job. And you make money as the investor that gets a good deal because you have a good agent. New homes are not always the best deal.
The Adams Team at
Rothwell Gornt Companies
1170 Peachtree Street NE, suite 1200, office 1230
Atlanta, GA 30346
404 309 4936
Unlike people who get a regular paycheck, that one deal may be the only compensation a realtor has made all year especially in today's market. Out of that we have to pay our company a good chunk, sometimes almost half when you include all the other fees; office fees, technology fees, website fees, GAMLS, FMLS, Realtor Board Fees, then our expenses including gas, transportation, lock box keys, printing and the taxes we have to pay on the money we get. We have to pay double insurance, and have no benefits, so the only perk we have is a half way decent commission when we get a good deal like a $550,000 +/- transaction.
The danger is, forgetting to disclose to all parties. And even if you disclose it - your realtors Broker may not allow it, or the seller may not allow it. So Silas is right but most lenders won't let you do it even if you want to. And if you do it under the table the Realtor would be in jeopardy of losing his or her license. Furthermore Georgia Real Estate Code may allow it as mentioned above but RESPA may not - and the Realtor could be in trouble. So, unless a realtor is as sharp as I am on Real estate law and RESPA - they best let you walk.
Furthermore, the problem with this is when you start asking Realtors to give you money for their business, its like blackmail. And if they accept, that is a sign of desperation, and thus the ethical line is questionable. What other unethical thing will this Realtor do? And you as a client would scare me. Because I would wonder about your ethics. Don't ask Realtors to share their paychecks no matter how "easy" you think their work is. It is not. It requires training at our expense, time and dedication - let us earn our money without our customers and clients coveting it.
So, that brings that amount to $14,000 ASSUMING the Realtor doesn't have to give half of the commission to the Broker. This is going to narrow your Realtor search to those who don't pay a percentage of their earnings.
In the state of Georgia, the Realtor will have to pay 31% in advance taxes (25% estimated federal and 6% state). That's $4340 in taxes that she has to pay, again, assuming this is the highest tax bracket she will hit this year. If she makes more money, then she will have to pay more in taxes on the money she made, which means you will get less up front. You'll want to ask your Realtor how much money he/she makes on average in order to figure out his/her tax bracket going into this deal. After the reduction of taxes in the lower tax bracket, we end up with $9660. The Realtor is now ready to split pay with you (usually about 1% is paid out). Let's use 1.5%, in case you get lucky. You will get $4830.
The Realtor is going to send you an IRS form 1099 for the cash that she paid you, again, depending on her tax bracket. You will have to claim this money as cash income. If you don't have the means to write this off, you will have incur a tax hit from the IRS for about $1500 and additional debt to the state of GA. If you can write off the 31% tax hit of the $4830 ($1497.30), then excellent! This of course, assumes you make no income and are at the lowest tax bracket applicable.
Based on the size loan, I'd guess you are in a higher tax bracket. We'll assume that you don't have a job and this is all the money in the world that you will receive this year.
When all is done after your research of the Realtor annual fees incurred, the Realtor's net profit from the Broker, the Realtor's tax bracket, the taxes incurred from the IRS (you'll probably want to create an LLC for a few hundred bucks to avoid potential future lawsuits since receiving commission may implicate you if anything goes wrong during or after the transaction), you'll be happy to know that you netted about $3000.
What you may want to do is go get your Realtor license yourself and use the 3% commission to get more closing costs paid, pay for repairs on the house, lower the price etc. Anyone of these fine people would probably be happy to steer you to someone who can help you.
Agents have laws and ethics we pride in, our professional services are governed thusly.
I applaude your hardwork but I would suggest you seek the services of a licensed buyers agent
as the development you have researched most likely has a sellers agent working for them
It would be my pleasure to assist you!
Bob Wood Realty of Atlanta
770 906 1222
Everyting in real estate is negotiable. Buyer's agent can contribute towards your closing costs, home warranty, repairs or otherwise. The amount has to be discussed beteween you and your agent. Some times agents have to obtain permission from their brokers.
Feel free to give me a call so we can discuss it in greater details.
Veronika Barash, RealtorÂ®,
CERTIFIED SKILLED NEGOTIATOR
REO & SHORT SALE CERTIFIED
CERTIFIED MARKETING SPECIALIST
Keller Williams Realty Consultants
Congrats on your decision to buy a home! I could be mistaken, but GA Real Estate law regulates how/what/how much money any Realtor can pay, as a referral, to a non-licensed person. Take into consideration that the buyer's agent will be taxed on any monies given to you as a gift or "refund".
It might be a better option to ask the buyer's agent to pay for an electric garage door opener, or maybe pay for the cost of an extended home warranty for you.
Hope this helps and congrats again on your impending home purchase!
Keller Williams Realty Intown Atlanta
621 North Ave. c-50 (behind Ponce City Market)
search here for your dream home:
...the greatest compliment you can offer me is the referral of your family and friends