If you bought a loaf of bread for a $1, you wouldn't expect it to taste like a $7 loaf from a bakery.
If you buy a yugo, you wouldn't expect it to drive like a Mercedes.
If you bought a Timex, you wouldn't expect it to worth what a Rolex is.
Come to think of it; you "expect" yourself till you're blue!
Hey you all, I donâ€™t work with any Realtors that offer rebates, are they taxable income to the party receiving them?
NMLS # 6395
Financing Kentucky One Home at a Time
If you were going to the dentist to get a cavity filled and the the dentist's assistant said she would be wiling to do the work for half the cost, would you let her? No, the dentist is a professional with tons of experience and knowledge.
In my opinion, the difference between a good agent and a great agent is their knowledge and their ability to use that knowledge to their advantage. One who will also fight for your money like it's their own.
I'm sure there are some good agents who will discount their commission, hopefully you will get lucky and find that person.
Good question, and I'm sure lots of debating.
Typically speaking, the answer is no. Most firms that I am aware of offer lower prices also offer less services in exchange for their reduction in price - see Redfin as a prime example - especially ones that offer significant discounts or rebates..
My firm is an anomaly - we are a full service firm and frequently do things for our clients that other full service firms don't, but we do offer a 10% rebate of our commission to all our buyer clients. There are lots of reasons why we do it - we've done it since the inception of the company - and happy to share those with you offline if you like.
Lance King/Owner-Managing Broker
King Realty Group
In our market it is crucial to have an active, respected agent who works hard and has an excellent reputation. Your offer with them will be seen much higher than if you are offering with a discount agent. The seller's agent knows they are hard to work with and thus run the risk and liability to the seller that the transaction could fall through. In our market, it is not worth it.
Coldwell Banker Menlo Park
My personal experience has been low prices equal poor results.
See, eg. http://www.propertyrevivalrealty.com/pages/14762/probuyer-bu
You asked a question that is going to touch a sore spot with most real estate agents, so you are likely going to get some biased opinions. Realtors have a vested interest in protecting the "no rebate" model, and ensuring that all agents follow the unspoken "rules" with respect to this. This is simply because most are afraid of a world where agents are competing on "price", and forced to undercut each other by offering a higher rebate than the next guy (i.e. "Agent A told told you they would you $1000? Well, I'll rebate you $1500 then" etc. etc.). Once this scenario happens, it would simply force many out of the industry - because the cost of doing business would be too high relative to what agents would "net" after fees, brokers splits, and now an additional rebate to the client.
At the end of the day, there are good agents that don't rebate, bad agents that don't rebate, bad agents that do, and good agents that do. The function of offering a rebate to a client does not automatically equal discount service. The quality of the agent and their level of service is really the only thing that matters.
I know agents that are on 100% commission plans, that offer a small portion of their commission back to their clients, because they don't have to pay the large broker splits that some other agents do. Instead of the inflated desk fees, advertising fees, and 60/40 broker splits that some agents pay to work for a company that has the overhead of TV commercials etc. - they simply pass a small portion of the 100% commission they earn onto their clients, and end up netting more at the end of the day than some of the non-rebating agents on traditional broker commission splits.
An example is - Agent A doesn't rebate, but forks over 40% of their commission to their broker. Agent B earns 100%, and gives 20% of that to the client. At the end of the day, often the "discount" broker is earning more money after the rebate, because they are on a more lucrative commission plan. So, it really depends on the commission model that your agent is on - if your argument is that rebaters "earn less so they will cut their service".
Choose your agent based on the quality of their service. If you can find it at a value because of a commission rebate - then all the better for your bottom line.
Hope this helps!
I don't think there is one answer that fits all agents. I know of agents who discount their services and still do a great job on behalf of their client and there are also agents out there who charge full commission and don't represent their clients well. So, you have to find the right agent first before thinking about getting a discount on fees. There is also more than one way to get a discount as some agents will pay for staging, moving costs etc., but not offer a cash rebate.
So, my advice is to find the right agent first who will do the best job for you, then discuss any potential discounts. You might find an agent you like and are so confident in their abilities to get you a great deal that you don't worry about any discounts.
If you discount your services whatever they are, are you motivated to the best job you can? You are probably thinking why would I take less for my job? I'd still be doing g the same amount of work.
This is the largest purchase of your life: get a professional.
You wouldn't want to fly with a discounted pilot or have surgery wi a discounted doctor or even go to a discount hospital.
Discount means disregard. Don't leave yourself feeling that way!
Treat yourself to top quality, you will get top shelf service.
Since a discount broker provides a different set of services than a full-service broker, we have to assume that the results will be different, too.
If we were to write a list of the measurable results wanted by a home buyer or seller, we could then draw a line from the broker's list of services to each desired result. With a full-service broker, we'd see that there is a specific service available to achieve just about any result. With a discount broker, we'd see that many of the desired results would have no line to a service that could support achieving it, therefore those results can't be achieved.
In short, if you want fewer results, go with the discount broker who provides fewer services.
Susan Penn, PA, SFR, CDPE
EWM RealtorsÂ® | A HomeServices of America Company | An Affiliate of Berkshire Hathaway
2000 Main Street, Suite 103 | Weston, FL 33326
T: 954.306.7337 | C: 954.557.5993 | F: 954.515.0200 | email@example.com
Further more if an agent compromise on his own money that he put in his pocket
what it's make you think that he/she will not compromise on your money? instead
to negotiate on your behalf and get you the best deal...
There is no hard and fast answer to that. Some agents advertise a discount and some will give it if you ask. Some discount brokers offer more service than others. Some full service brokers give you the moon and some give no more than a discount broker.
If I were a buyer in this market I would look for an agent who can get offers accepted and then listen to that agent's advice. This is a tough market for buyers and getting an offer accepted to so hard you need every advantage you can get.
If I were a seller in this market I would look for an agent who I would trust with my money and reputation. Any agent can get offers on a house in a seller's market, but there is a lot more to selling a home than getting offers. If you can not trust the person you are working with to look after your best interest than move on. There are many ways that your interest can be compromised from having the medicines in your bathroom stolen to being pressured to accept an offer where your agent gets both sides of the commission and you do not get the best advice and possibly price and terms.
So I would suggest you interview several agents and look at what they can do for you as well as how much you can trust them and then discuss money.
Keller Williams Realty Palo Alto
Just remember that you get what you pay for. If they are offering you a break on commission you need to ask what you are giving up in the service that they are providing. Typically how this works is the less you pay the less they are going to do. They might not host open houses now and in some programs they want you to field all calls and set-up the showings yourself. Hope this helps and good luck with the sale of your home.
We all want to believe that there's a Coupe de Ville in a Cracker Jack box, but at some point, when a person realizes they can earn more money by doing the same amount of work - or less - then, no surprise, they move to the more profitable model.