Our offer was accepted and since we are first time buyers, we didn't know that we could negotiate with the agent for a commission rebate. The loan funding is next week. Is it too late now to ask for a rebate?
You Should have had a Discount Realtor. If you done so, You did not have to negotiate.
Anyway it is too late now, But if anybody else you know want to purchase, ask him to find a realtor in Area who gives commission Rebate.
It is easy to find one. Just go to Google.com and type commission rebate and then city and state you want to purchase in.
It would definitely be difficult to renegotiate a signed contract. It just isn't good business AND it is a signed and enforceable agreement.
At the rehava ~ Real Estate Store we always reward our clients with 50% of the commisison paid.
Someone, is it too late now to ask for a rebate? No. Is your agent in any way obligated ethically to accomodate you? No. The time to negotiate fees is at the start of a transaction; if your agent turned to you, nearing the closing of your house, and requested that you please pay them more, they could also ask.
Because the deal is "struck", ask- but don't let a refusal diminish the experience for you.
Rebates are legal in your state- but are entered into at the beginning of a transaction, so that full disclosure is in evidence to all parties, including the seller and lender.
The house was shown to the agent by us and the agent then helped us with the offer. I was saying whether we could ask him to contribute to our closing cost.
Hi,
Let me get this straight... The agent you hired to represent you helped you find the property you wish to purchase, helped you write the offer and the offer was accepted so now, after they have done the first half of their job, you want to cut their salary?
I don't see anything wrong with negotiating with your representation before you cement your relationship, but to try to do so after the fact is really unfair. Also, the money that the buyer's agent earns is paid by the seller's proceeds so, the buyer really has nothing to do with the transaction unless they have signed an exclusive for compensation agreement for a specific dollar or percentage amount.
In short, it might be too late to ask for a rebate and as the agent from Palo Alto states, might actually be illegal depending upon how the deal was structured. Especially if the offer you presented to the seller did not disclose that any part of the monies involved in the transaction would be rebated/given/credited to you. This information might have affected the seller's decision on whether or not to accept your offer as presented.
I don't think it would really be worth the possibility legal action over a couple of grand. Enjoy your new home, in this difficult market, you are fortunate to have found the property that works for your family and a lender that will help you make it a reality.
Take care and have a great day!
Tisza Major-Posner, Realtor, IVPG Realty
I know I'm going to stir up a hornet's nest with my answer, but technically rebates are illegal in California. To protect you and your agent (who should already know this), here's the difference.
A rebate technically means that you are getting something back, such as cash or a check from your agent after your deal closes. Cash inducements to attract clients are illegal. A licensed agent may share a commission with another licensed agent who provides a referral, but licensed agents are not allowed to share their commissions with anyone who is not licensed. In other words, if your agent promises and delivers part of their commission to you in cash after the deal closes, that's a rebate and it is illegal.
A discount, which I believe is what you are describing, is when the agent cuts their fee in order to reduce either the selling price and/or the amount the buyer brings to escrow for closing costs. It is perfectly acceptable to discount fees up to the full amount of the commission (but not more than the commission).
Keep in mind that if you ask for and get a commission discount now, you might have to amend your purchase contract or have escrow prepare instructions that you and the seller sign to document the reduction.
Someone -
Hmm, the answer is sure, you can ask for anything. I think it will depend on the agent and your relationship on whether or not you are going to actually get it. There are services out there that offers this type of buyer relationship. If a rebate was important to you, this would have been a better choice of service relationship.
Good luck.
CJ
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