Home Buying in 54913>Question Details

Raj_kumar, Home Buyer in 54913

Do agents split tthe comission with the buyer. I was told some agents split the comission 50-50 I am looking to buy a house in Appleton, WI -54913

Asked by Raj_kumar, 54913 Fri Oct 1, 2010

I am looking to buy a house in Appleton, WI - 54913.

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21
JOSEPH RUNFOLA JR, BROKER, GRI’s answer
Hello Raj, I am not familiar with the real estate law in your state, but I thought no individual may legally accept a commission for performing any of the activities regulated by the license law, unless he or she holds a valid New York real estate license at the time the activity is performed, and they maintained the license from the start of the transaction up to the point that the compensation was received, and brokers could only share commissions with their own salespersons and associate brokers or with other licensed brokers. I also thought the law against sharing a commission with any unlicensed person effectively prohibits kickbacks.
Web Reference: http://www.clovelake.com
1 vote Thank Flag Link Wed Oct 6, 2010
To Your question, We can not give out any legal advise. If you were a licensed Realtor on the other hand we could maybe help you out there.
Your first step in finding a home is finding a Great Realtor. We Sell over 150 homes a year, we know the market, we know how to treat Buyers and Sellers. Treat All fair. We also get a lot of foreclosures and not all are treated like they should be, I hear a lot of things from buyers, some say "foreclosures are just down right discussing" Not true, we have some really nice foreclosures that I would buy myself.
Mike Werth
Direct 920-702-0162
Click on all our listings HERE
The Werth team finished #3 in Sales in WI. as per sales
http://www.AppletonProperties.com
2835 W. College Ave
Appleton, WI 54914
Fax 920-560-5438
RE/MAX 24/7 REAL ESTATE



Michael Werth
(920) 702-0162
http://www.werthteam.com
mike@werthteam.com
1 vote Thank Flag Link Fri Oct 1, 2010
We are professionals just like Doctors, Lawyers etc. Do you ask them to split their pay with you? We work hard for our clients and we offer knowledge in Real Estate!

Good luck!
1 vote Thank Flag Link Fri Oct 1, 2010
Raj,

The quick answer is no. Commission is the service fee paid by the seller to the agent(s) who provided service during the sales and closing process. The money comes from the proceeds of the sale.

I think you are confusing the buyer's agent with buyer. This is a real estate agent a buyer hires to represent them in the process. This person is paid, usually, from the sales proceeds.

Polly Briley
RE/MAX On the Water
920-203-1155
1 vote Thank Flag Link Fri Oct 1, 2010
As an instructor for pre-licensing law, I can tell you that many agent are confused by 452.19. Specifically, 452 specifies which actions would require a person to have a real estate license. It also says that if you perform any of those action, you must be licensed to be paid a commission (fee). The parties to a contract, however, are not regulated by the DRL nor 452, and we as agents are allowed to give things of value (including money) to any party to the contract as long as all parties are aware and agree

You may also call the hot-line to verify this
0 votes Thank Flag Link Fri Oct 15, 2010
An agent can split his/her commission with a buyer as long as that is disclosed to the principals in the transaction at the time an offer is made.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Fri Oct 15, 2010
As I stated in an earlier post, there are many business models out there. Although a Real estate License is required in Wisconsin for a person to receive payment for a "Referral", this same rule does not apply if the person is a party in the transaction ie: The Buyer or The Seller. Here is a quote directly from the Department Of Regulation and Licensing:

"Can a real estate broker offer a finder’s fee to people who make successful referrals to the broker?

No. Wis. Stat. § 452.19 prohibits the payment of a finder’s fee or a commission to a person not licensed as a salesperson or broker. However, there are no restrictions on a licensee giving a gift or an incentive to a buyer or seller. "

If an incentive is being offered to a buyer or seller it must be disclosed in writing and in advance.

The practice of sharing the proceeds from the purchase or sale of Real Estate is rare but it is also a business practice that a brokerage could adapt. Because of this, If a brokerage received a $2000 commission on the sale of a home they may be able to give half of that to the buyer or seller.

Hope this helps!
0 votes Thank Flag Link Fri Oct 15, 2010
Are you thinking of rebates (instead of commissions?). Refer to http://www.justice.gov/atr/public/real_estate/faqs.htm

But goodness, if the realtor worked for you and got you the house, doesn't that realtor deserve his commission? We're hired professionals just like anyone else.

If a plumber fixed your leaky toilet, are you going to ask him for 50% of what you pay him? Or if the dentist put a crown on your tooth, are you going to ask him for 50% of his bill paid back to you? Or if you got contractors to work on your house --- etc....
0 votes Thank Flag Link Fri Oct 15, 2010
Love Donna's answer :

Commission splits are contractual and set by the broker. Referrals commissions can only paid to licensed realtors. Put your focus on finding the perfect house and working with a licensed professional realtor that has your best interest in mind.
0 votes Thank Flag Link Fri Oct 15, 2010
Brian,

I have researched the statute you quoted and I am finding nothing other than licensees or licensed people. I have taken the time to do this because I was shocked at your answer regarding this. What I have found is the following:

"A. Wis. Stat. § 452.19 permits a broker to pay referral fees and finders fees to other Wisconsin licensees as long as that person's license is active, regardless of the fact that the person holds a salesperson's license (rather than a broker's license). The fact that the person is not currently employed by a broker is not relevant.
Pursuant to Wis. Stat. § 452.14(3)(f), any referral fee received by an employed salesperson (whether licensed as a broker or a salesperson) in connection with a real estate transaction may be received by the salesperson only from the salesperson's employing broker. A non-employed or inactive salesperson, however, can make a referral and receive a fee.

It may be prudent practice to ask for a copy of an agent's license before entering into an agreement for a paid referral. The agent must have a valid, current license - he or she must complete the continuing education requirements and pay the renewal fee each biennium to keep his or her salesperson's license current, or must have an inactive license with the DRL per Wis. Stat. § 452.12(6). It is not necessary that the agent be a local Board or WRA member."

If you have information to the contrary, I would truly be interested in seeing it first hand.

Linda
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Fri Oct 15, 2010
Perhaps you could share the link to that statute?
0 votes Thank Flag Link Fri Oct 15, 2010
Raj,

I do agree with most of the content of the answers, but do want to correct one item repeated by just about every agent. In Wisconsin, it IS allowed for an agent to share their commission with any party to the contract with the consent of both parties. Wisconsin Statute 452 and Rule 24 should help you understand this topic more.

I am quite sure, like most agents pointed out, that you are simply confused by some bit of information that you heard from a friend about commission splits, but I did want to set the record straight
0 votes Thank Flag Link Fri Oct 15, 2010
Raj, You get what you pay for. Without being an attorney or licensed in your state I would have to agree with most comments in assuming you'd have to be licensed to receive a portion of the commission.

That being said, the seller will pay for the commissions so nothing is coming out of your poacket to pay a buyers agent.

Moreover, if it's important to you a good agent can try to negotiate up to 6% seller credit towards your closing costs. Rather than trying to get a good agent to give you half of his pay, try to get an good agent to negotiate you a seller credit. Mike Werth seemed to be in your area and have access to alot of foreclosures. Foreclosures often give seller credits. Call him and maybe you can end up with 6% instead of 1.25-1.5% and allow a good agent to get paid what he/she is worth too.

Hope this helps.
0 votes Thank Flag Link Tue Oct 12, 2010
Commission splits are contractual and set by the broker. Referrals commissions can only paid to licensed realtors. Put your focus on finding the perfect house and working with a licensed professional realtor that has your best interest in mind.
0 votes Thank Flag Link Wed Oct 6, 2010
Raj,

The agents pretty well explained the commission process to you. The commission is split between the listing agent and his/her broker (the person who lists the home is the listing agent )and the buyers agent and his/her broker (the agent that sells the home).

If I can be of further assistance dont hesitate to contact me, I specialize in the Appleton and surrounding area.

Nan Brennan
Century 21 First Realty
nbrennan@new.rr.com
920-427-0414
0 votes Thank Flag Link Fri Oct 1, 2010
Just be careful when you sign to work with an agent offering such a "deal" as I have known several to sneak in clauses that may be additional such as a transaction fee (or anything of the sort). Usually such programs show a savings in one area that are recouped in another.
0 votes Thank Flag Link Fri Oct 1, 2010
I think that Zip Realty has some sort of program where they give back to either the buyer or seller, but its not 50%. That's an awfully high number. The buyer can be given money back from the Realtor as a gift, because they are directly related to the sale of the property.
However, if you meant to write buyers agent, then yes, its normal to split the fees 50/50 or 60/40 between real estate agents.
Best of luck.
Web Reference: http://www.mikeconsoli.com
0 votes Thank Flag Link Fri Oct 1, 2010
My suggestion is to focus on the house, and less on what the agent who is trying to make a living helping you is earning on the transaction. There are different models and I think there are firms bubbling up that will provide some return of commission in some form. But I would investigage what you give up to get there.

In the end your goal is to successfully negotiate the purchase of a home you want to live in. I am of an opinion that what you gain in working with a really good negotiator will outweigh any commission savings you might realize.

....just a thought.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Fri Oct 1, 2010
In actuality there are all kinds of business models out there. In order for an agent to share a portion of his or her commission with a buyer it must be disclosed in advance to all parties. Although it is possible, it is very rare! Contrary to popular belief most Realtors are not walking around with hundred dollar bills falling out of thier pockets. The commissions they earn are well deserved. We work very hard for the money we earn as I am certain you do as well!

If you have questions about properties in Appleton I am happy to help out. Feel free to contact me at any time!
0 votes Thank Flag Link Fri Oct 1, 2010
Raj_kumar, It is illegal for an agent to pay you commission, unless you are a licensed realtor. Acceptable commissions and splits are set by the realtor's broker and their company. In some instances, the realtor has no authority to reduce the commissions at all.
0 votes Thank Flag Link Fri Oct 1, 2010
Raj,

The commission is paid by the seller. The seller contracts with an agent for a certain amount and part of that amount is offered as a "co-broke". The co-broke is the agent who brings the buyer. Your best bet is to interview a minimum of three agents and find a good fit for your needs and personality. If this is your first home, you will want someone who specialized in first-time home buyers. There are many challenges that arise with first-time home buyers and you will need an agent that is both knowledgeable and patient in this area.

Once you choose an agent, don't be afraid to sign a buyer agency. This will ensure that you are committed to that agent and therefore they will be committed to you.
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Fri Oct 1, 2010
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