Home Buying in 33558>Question Details

Mark, Home Buyer in Tampa, FL

Found home in Lutz we want to buy. Any realtor interested in sharing commison to represent us?

Asked by Mark, Tampa, FL Thu Mar 27, 2008

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Mark,
Bottom line is that with the proper structure of the contract, what you are asking is possible. All this correspondence back & forth has probably has given you more questions than answers. Ethical agents know how to get this done the correct way and still represent their client properly.
There has been a lot of inference to aspects that need to be know and good buyers agents can structure the deal the way you are asking. Most of the negativity towards your request is based on you asking Realtors to reduce their commission. From both side, yours and theirs, I can understand.
If you want to consult about the deal structure, seems like Mark Z. is the most responsive.
4 votes Thank Flag Link Fri Mar 28, 2008
Mark,
In a nutshell... We CAN work out a deal if ALL parties involved in the transaction. It would not be cash directly back to you, but a contribution to closing costs OR a reduction in price for reduced commission.

If it's a contribution to closing costs it means you would need to bring less to the table to close, therefore leaving you with more in your pocket. I will make sure and have my broker agree to this in advance and all parties would be aware of what's going on, everything will be on the up and up!

Think it was your wording and a bit of naivity that upset the apple cart.

weichertmarkz@yahoo.com
3 votes Thank Flag Link Fri Mar 28, 2008
Mark,

When I saw your post earlier today I just knew it would stir up a hornet's nest.

I think (I don't know for sure) that what has people buzzing here is the term "sharing the commission". Commissions are shared all the time in real estate, it's what makes our world go round.

The caveat is, the sharing, under law has to be done between brokers and is more commonly called "the split". If you find a buyer;s agent willing to give some portion of his commission as a rebate that is legal and ethical BUT it must be represented as what it is on the HUD-1. In other words, who it comes from, who it goes to, and exactly how much it is.

Sharing a commission can only be between Brokers PERIOD.

I believe what you are asking about is a rebate.

Good Luck

JD “Dan” Weisenburger, GRI
Broker-Associate REALTOR®
Vanguard Realty, Inc. GMAC Real Estate
Web Reference: http://www.neflahomes.com
3 votes Thank Flag Link Thu Mar 27, 2008
There is nothing unethical about sharing commission. Some brokers have this in their business plan and push this to get leads and listings. My main point, is that would you ask your Doctor to give back part of his fees to help you. I understand your point, Phil, and if want they want is someone just to fill out the paperwork and not truly represent them as an ethical realtor, then maybe it is best to pass on them. Not being represented correctly & ethically can be more costly than the rebate they are looking to gain. Good Luck
3 votes Thank Flag Link Thu Mar 27, 2008
Mark, as long as rebates are legal in Florida, there's absolutely no reason not to ask. A Realtors paycheck is not your problem- although it appears that many would like to make it so. Ignore it, and call the agent interested in working with you. Unpopular, I'm sure, but bottom line is, you found a house, you'd like representation, and you've made the real estate community an "offer"- nothing wrong with that. Just make sure that it's on the HUD1 and cleared through your lender.
Web Reference: http://optionsrealty.com
2 votes Thank Flag Link Tue Apr 1, 2008
I think the reason you are getting the answers you are getting is because people don't understand the difference between buyer rebate and buyer gift as I feel some are thinking that you want to get "paid" out of this transaction. Agents cannot pay others unless they have a Lic. in the State of Florida but a buyer rebate can be done. If you are in fact working with some other agent that represents you in some fashion, then I think the answer you will get from this board is NO. But if you are unrepresented, which is not a smart thing in todays market, then it should be no problem. http://www.findmyfloridahome.net
2 votes Thank Flag Link Fri Mar 28, 2008
eLoan is a good place to get a loan, they are an upfront lender : http://www.mtgprofessor.com
Chuck Bolles with Wells Fargo often beats ELoan on the rate and "lender related" fees. Call Chuck , Toll Free Phone: (866) 407-6748 Ext.102 to compare with your eLoan offer.

Here's the law about commission rebates:

Florida Administrative Code rule, 61J2-10.028(2) provides “the sharing of brokerage compensation by a licensee with a party to the real estate transaction with full disclosure to all interested parties is not considered a violation of Chapter 475, Part I Florida Statutes.”

Realtor commission rebates to buyer or seller are perfectly legal provided it is disclosed on the HUD-1 Settlement Statement via a cash credit to you at closing. Non-licensed persons cannot receive a rebate unless they are the buyer or seller in the transaction. Some lenders may not allow the buyer to receive a rebate but many will.

How did you "find" the Lutz home? If another Realtor showed you the house and other properties, it may be unfair for another Realtor to step in now to write your offer.

If you just happened to go to an Open House and fell in love with the house and merely browsed listings online and at Open Houses, you may want to see several other similar homes with your realtor to make sure this is truly the best house and best value for you. Has the property been repaired for subsidence (sinkhole)? Also is the home in a CDD community? Have you looked at the CDD and HOA financials to see what potential liability you could have as a homeowner because of golf course losses or other problems? Is it a bank owned foreclosure or is the Seller attempting to get the lender to take a loss via a short sale? You may want to have a Realtor show you competing properties as this home may not be the best deal out there. With a plethora of inventory, you have many choices. There are exceptional bargains out there. If this home you're considering is a true bargain, if you delay, you may miss out. Of course others will become available in this Buyer's market so may be able to find a similar deal, if not better. Some listed prices of bank short-sales are not acceptable to the lender so it may not actually be available even at the full listing price shown.

It's smart to hire an attorney to assist you with your transaction but you may also need advice from an experienced Realtor. Attorneys may know the legal ramifications of a contract but may lack knowledge of the practical side of the business. Smoothing out the emotional side is one of the most important benefits a Realtor brings to the transaction. Many Buyers and Sellers get very emotional and combative and may nix the transaction if it weren't for the counseling of Realtors.

Because I have an arrangement with my broker that allows me to keep almost 100% of my commissions (many Realtors give away 1/2 of their earned commissions to their broker), I may be able to offer a significant rebate. Realtors often pay rebates to other Realtors via a "referral" fee. Please call or email for details of my offer if you're still looking for a Realtor to help you. I would need more details about the transaction before making an offer to rebate commission.

Please call or email if you would like to discuss this.
Web Reference: http://www.SoldOnTampa.com
2 votes Thank Flag Link Fri Mar 28, 2008
JR...and all...
It's funny how everyone is finger pointing, but yet would "give away" 25 or 30% of their commission on a refferal if I said I had a solid buyer that needed help.
We ALL have done deals where things had to be negotiated at the last minute to make things happen, including coughing up commission.. So I fail to see my willingness to help someone out as a "Cut in Pay!
To me it's part of the business and the direction this industry may be heading toward, so I roll with the times.
Those who are willing to make deals happen will, those of you who don't won't and can sit here and post there objections.
2 votes Thank Flag Link Fri Mar 28, 2008
I like all the correspondence on this question. Goes in hand with calls that I receive from lead sources touting their agreed rebates after the closing. This all has to be on the HUD. The lender has to approve the rebate/kick back to the buyer. Do any of you remember the details of the Realtor/Broker in Pinellas that is being investigated about his companies practices for the investor groups that he plugged for business.
This has to be disclosed to the lender, not saying that it is impossible, an particularly since this would, I assume, be to an unlicensed person.
Do your homework first and make sure that the lender accepts the rebate.
Mark, you stated that you have an RE attorney. And his position on this is?
2 votes Thank Flag Link Fri Mar 28, 2008
Thanks for the education, everybody. I was referring to rebate. Antonio, I know nothing about real estate other than there are a lot of laws and potential pitfalls and entanglements. That's why I called and spoke to two attorneys to select one. I admit I was naive. I know it is hard work and didn't mean to disrespect it, if that's how it came off. I thought it was a simple enough question. Mark, if we decide to go forward I will call. Thanks everyone!
2 votes Thank Flag Link Fri Mar 28, 2008
Thanks for the feedback. Let me respectfully explain. When I applied at E-Loan, I was given an offer to use their preferred real estate agent and get a rebate. Some of the lenders that responded made similar offers.
I thought perhaps I could put this idea on the board. Perhaps there would be a local realtor near Heritage Harbor (where we are going to buy) that would be interested. I know these are tough times and I thought maybe somebody could benefit. This is "found money". I also have a real estate attorney. After reading Phils silly posts I called him and he assured me that there is nothing unethical or illegal about this practice
.Antonio. I understand your thoughts about taking a cut in a paycheck. I reasoned that I shouldn't pay as much as somebody you need to drive around for a month looking at houses. The house is chosen, the financing is lined up and the attorney is in place to review the paperwork. Your overhead is extremely low and the pay would be commensurate with the job..
Keith. Doctors negotiate and charge less to many people who belong to insurance groups and other organizations.
Phil. Before you read between the lines I suggest you read. I also suggest everybody read Phils profile and then read between the lines on her.
Thank you Mark. The house is $350,000. If you are interested in this proposition, leave a message here on the board.

Geez, I was only asking guys!
2 votes Thank Flag Link Thu Mar 27, 2008
Since we live in a post-modern society where everyone believes they're entitled to their own facts, you may continue to believe whatever you want.
~~~~~~~~~~~~~~~~~
As are all the other professional kibbutzers and lookers.
1 vote Thank Flag Link Sat Apr 12, 2008
Mark, thanks for asking this question. The 'other Mark', thanks for recognizing that your business model is changing. To those who believe they are similar to medical doctors, OMG! Do you really believe that what you do is similar to 8 years of college, an internship and additional schooling? EVERYTHING is negotiable. The buyer is the ONLY one bringing money and signing for the loan. All proceeds are paid from that money. Mark, check out my link on the latest FORBES article listing Tampa as the 9th riskiest market in the US. I know this will be voted thumbs down, but please, please, please tell the truth!
1 vote Thank Flag Link Tue Apr 1, 2008
I checked with my coach and BIC. They say that they would give a discount/rebate of 1% of their commission to be on the HUD statement ONLY if the buyer listed their home with them or let them send a referral to a listing agent in their town, or if the buyer was in the position, i.e., knowledgeable enough to know how to send repeat business to them by referrals to off set the rebate. I just learned that any of the principal people in the transaction can receive a rebate if it is stated on the HUD and if the lender will approve it. I think that Keith mentioned it in his post. Good luck to you two Marks in getting this job done.

The end result is do what it takes as long as it is ethically possible. But I do hope you the buyer, Mark, will sing the high praises of your agent and send them more business but problem with your referrals to your agent will be that he will ALWAYS be a discount agent with all your sphere of influences that you send to him.

By the way, I did cut my commission on a lot purchase because my client listed another lot he owned with me. It has not sold yet. The listing agent cut her commission too. My opinion on the purchased lot was that the listing agent had the commission up too high as well as the price of the lot so I did not feel that I really lost anything. EXCEPT that my buyers were looking for a home in the $500,000 range but after we looked at 15 homes and wrote two unaccepted offers, they opted to buy the $135,000 lot and build. The commission on a $500,000 property would have been so much more than the two lots put together. So you can understand that we do a lot of work before even knowing if we will get a paycheck or how much our check will be. I have had this same discussion with my brother who wanted to know how much of my commission I would pay him back once he purchased a home with me as the agent!

It is not about ME and MY commission but rather Bringing home results for my clients. But I do have to pay my mortgage too. So there are ways to make all situations a WIN-WIN for all involved.
1 vote Thank Flag Link Fri Mar 28, 2008
Buyer Mark, it looks like there's one agent here who's just dying to give away his paycheck. Frankly, it's a little hard for me to believe anyone is hungry enough to post 6 times begging to give away his paycheck, but , hey...everyone's different.

In the meantime:

Mark(Buyer): Thanks for the feedback. Let me respectfully explain. When I applied at E-Loan, I was given an offer to use their preferred real estate agent and get a rebate.
Some of the lenders that responded made similar offers.

JR: Very interesting! They must be very "successful" to have to take peanut referrals from a lender.

Mark: I thought perhaps I could put this idea on the board. Perhaps there would be a local realtor near Heritage Harbor (where we are going to buy) that would be interested. I know these are tough times and I thought maybe somebody could benefit. This is "found money".

JR: Of course it is. The agent doesn't even have to buy gas or open a door in this case. You make it sound as if all they have to do is answer "yes" and then walk out to the mailbox and pick up the check.

Mark:Antonio. I understand your thoughts about taking a cut in a paycheck. I reasoned that I shouldn't pay as much as somebody you need to drive around for a month looking at houses.

JR: We spend many hours driving around and showing houses to folks who never buy. And you know what? Sometimes we happen to pick up the phone, someone buys the first house we show them! That is what helps pay for all the time we spend with the other "buyers" who never buy. Just like how any other sales person may walk up to a number of people and demonstrate a particular product in the store, but one person may walk in, pick it up and buy it. Do you think they should pay less for it?

And you do understand we don't get a salary, right?

Mark:
The house is chosen, the financing is lined up and the attorney is in place to review the paperwork. Your overhead is extremely low and the pay would be commensurate with the job..

JR: In other words, you don't have a clue what's involved in this, do you?

Mark;
Keith. Doctors negotiate and charge less to many people who belong to insurance groups and other organizations.

JR: Mark, you do understand that doctors are paid by every person who comes into their office, don't you? They don't treat 10 patients for free, hoping that they're paid, then finally the next one pays. I spent a lot of time a couple of weeks ago working with a couple who wanted to sell, but were upside down intheir house. They didn't know how a short sale worked. I printed out articles, recommended 2 attorneys to them, and spoke to those attorneys about their situation both before and after, worked up a plan and a strategy, and basically let them cry on my shoulder. They listed with an agent who told them their house was worth $40,000 more than I did. I believe they made the wrong decision, i don't think they are going to get offers, but this was all unpaid labor, Mark. How often do you do your job and then at the end of the week you don't get a paycheck?

Mark: Phil. Before you read between the lines I suggest you read. I also suggest everybody read Phils profile and then read between the lines on her.

JR: I read Phil's profile. What are you getting at. Sorry, I'm missing it.

Mark: Thank you Mark. The house is $350,000. If you are interested in this proposition, leave a message here on the board.

JR: Good luck to you both.

Mark: Geez, I was only asking guys!

JR: And I'm asking you: how often do you work all week, and then your boss refuses to pay you? How often do you discount your services? What is it that you do for a living?
1 vote Thank Flag Link Fri Mar 28, 2008
I agree with J.D. "Dan". Realtors can not split their commission with anyone other than a licensed Realtor/Broker. However, your buyer's agent can go to the listing agent and negotiate his side of the commission to be lowered to make your low offer become more acceptable to the seller. But the listing agent isn't necessarily going to lower his own percentage of the commission to get the low ball offer that you plan to make work out for you and your Realtor. My doctors don't run specials and give me discounts on my bill and I wouldn't dream of asking them to for fear that they would not look after my best interest. If I was in your area and you presented your question to me, first I would have asked you more questions to get a better understanding on what you were trying to save. If you only want me to write the offer at the $350,000 that you are willing to pay then I would have you sign that my only duty to you is functionary and not fudiciary. You asked for a "discount package". No CMA's of the area. I would not attend any inspections to be done on the home. That means that if you have a home inspection done and something needs to be repaired you are on your own to negotiate that out with the listing agent who has a fudiciary responsibility to his client. If your lender is dragging their feet and looks like they are not going to get you to closing on schedule, again you are on your own there. Should your closing attorney decide that they are going to bump you to another date and you already have the moving van scheduled to come, well you have to work that out. Would you be needing my services on the day of closing to go to the closing table with you to make sure that everything on the contract is also on the HUD? Numerous times the HUD statements have to be corrected at the closing table. What if the day of closing, you (without a Realtor) do the walk through of the house and find that they took with them the light fixtures, the free standing range, microwave, refrigerator and the outdoor spa that you thought was staying plus they messed up the hardwood floors and walls that will cost you to have fixed. I just shared my commission with you the day we signed the offer so are you going to start paying me back for all the extra necessary things that I would have to do to get you to closing? It is true you get what you pay for.
1 vote Thank Flag Link Thu Mar 27, 2008
Sorry my email is weichertmarkz@yahoo.com

And I'm far from unethical
Mark
1 vote Thank Flag Link Thu Mar 27, 2008
Mark,
Give me a call at 813-849-8554 or email me and we can discuss how we can work something out. I used to live in Heritage harbor so i know it well and our office is in Lutz.
Mark
1 vote Thank Flag Link Thu Mar 27, 2008
Hello Mark,
I couldn't agree more with Keith..........
Altough you might instead ask, nicely, if a Realtor might contribute in other aspect that eventually you don't even account for.
I guess your employer doesn't ask you to take a pay-check cut in order to work there........ I I think if you have a minimum of self-esteem you wouldn't accept either.
That said..... do you have an idea of the overhead of a Realtor....i/e : I got a commission of $2750 which detracted all expenses and commissions, leaves me $850....... after taxes, let's say I drive you there, make few phone calls, due diligence etc.... I've been working at least 40/60 hrs, do the math, account all liabilities..... AND YOU'RE WEARING A REALTOR SHOES.
No offense, ask, you might get it.... but beware, you might get what you pay for!
best of luck.
Web Reference: http://www.hothomespot.com
1 vote Thank Flag Link Thu Mar 27, 2008
Thank You Keith for reading between the lines.

Phil
Web Reference: http://www.PhilFowler.com
1 vote Thank Flag Link Thu Mar 27, 2008
Hello Mark,

What do you mean by "sharing commission"? Is it a short sale, FSBO or are you suggestiong sharing the commission with you as a home buyer? If you are trying to do something unethical, the answer is No thank you.
Web Reference: http://www.PhilFowler.com
1 vote Thank Flag Link Thu Mar 27, 2008
Yes, call me ASAP;). Local area experts that can help. Experienced Buyers Agents that aggressively negotiate on your behalf. Short sales and new construction are our forte.
1 vote Thank Flag Link Thu Mar 27, 2008
Mark,
Please visit our website at http://www.freyrerealestate.com. We specialize in Realtor Rebates and have credited every single buyer's transaction that we have closed with 50% of our Commission. Every Time, Every Deal! If you have any questions at all call me at (813) 562-4033 or my Broker at (813) 318-2526.
0 votes Thank Flag Link Fri Aug 15, 2014
Don't think so unless you are willing to share your income with me.

I can sell you foreclosure resales properties that save you muche more than sharing a commission, but I don't share commissions because I don't charge full commissions to my clients. Why not just pay for the service you receive and get a larger discount on the purchase. You shouldn't really be asking for something for nothing. Not the american way to do business!!!!!!!!!!!!!!!!!!!!!!!!!!!
0 votes Thank Flag Link Tue Jun 30, 2009
Man, that is an oldy but a goody. SO, I'm just wondering how that V shaped recovery worked out for you Katrina? Is that crickets? It would appear that the data supported a continuing fall of prices in 2008 and even 2009. But of course, it is always a great time to buy, buy, buy. V shaped, Haaaaaaa! It will live forever on the internet and that's why you don't ask a salesman if it's a good time to buy, you evaluate your own circumstances and make the call.
0 votes Thank Flag Link Mon May 4, 2009
NO! I do not provide discount service and I expect full pay for protecting my buyer and client. I hope you do not get burned. Good luck. Lou
0 votes Thank Flag Link Sat May 2, 2009
Hello Mark. What do you do for a living? I'm sure you do something that I may have a need for. Would you also be willing to share your salary with me?
Web Reference: http://www.tampa4u.com
0 votes Thank Flag Link Thu Jan 22, 2009
WOW!! Lots of great dialog!! Did anyone ask along the way if you had already viewed the home you wish to buy and more importantly-WHO showed it to you? All this discussion could be a moot point if the listing agent has shown you the property because then ethically the commission will be owed to that agent unless you disclosed that you were already working with another agent(which you obviously are not). This is why we always recommend employing the help of a buyers agent at the beginning(which is free) so that you do not "show your hand" to the seller or listing agent.
I live & work right here in the Lutz/LOL area if I can be of any assistance to you, please feel free to contact me at anytime.
RLandis@ERADennis.com or 813-997-3218
0 votes Thank Flag Link Fri Apr 25, 2008
The plural of anecdote is not data. The facts of the matter are that Tampa has been designated a declining market by most of the banks requiring a larger down payment and higher FICO. Additionally, the mortgage insurers have designated most of Florida a declining market and require 5% down and no more than 95% LTV. I understand what you think your seeing in the spring 'rush'. Since we live in a post-modern society where everyone believes they're entitled to their own facts, you may continue to believe whatever you want. I will check back in another year when we are deep in the recession and see how the market is doing.
Web Reference: http://www.sptimes.com
0 votes Thank Flag Link Sat Apr 12, 2008
Thomas, I wrote that blog post and it IS in fact 7 months old, but still right on the money. Tampa has a V SHAPED housing economy.

There was just a report that came out on west pasco and how the property values there have already started to rebound, we are not far from the bottom. Believe what you want, i work in this market every day. There isn't a day I don't work late!

All my best,
Katrina
0 votes Thank Flag Link Fri Apr 11, 2008
Funny, that's last year's article. Anyway.......
0 votes Thank Flag Link Wed Apr 2, 2008
funny I think people find what they are looking for.
http://activerain.com/blogsview/190809/Tampa-1-buyers-market
0 votes Thank Flag Link Tue Apr 1, 2008
WOW! What a TON Of responses! I have been out showing properties. We do not discount or rebate commission, but I DO offer SOLID buyer services, including previewing homes for you if you cannot be here.

I believe you get what you pay for, and in this case you aren't even paying for the commission - the seller is, so there really isn't much of a reason not to use a Realtor.

I live and work in the local area where you are talking about buying. Born and raised here in the Tampa Bay area. If you still need help, just click away.

Katrina Madewell
0 votes Thank Flag Link Mon Mar 31, 2008
Mark (buyer) JR...and all...
It's funny how everyone is finger pointing,
~~~~~~~~~~~~~~~~~
What do you mean? Who did I point my finger at? And what is it that I was supposed to read behind the lines for in Phil's profile? You haven't answered.
0 votes Thank Flag Link Fri Mar 28, 2008
"Mark".... the buyer; as I stated before, no arm, no argument just a civil conversation; at least you show some respect while other think we're just here to cut the pie :)
It has been a pleasure interacting on this subject........
Best of luck for your purchase, find a Realtor that gives you a "BIG" discount........negotiating the price down and find the best deal (steal) for you. :)
Ciao.
Web Reference: http://www.hothomespot.com
0 votes Thank Flag Link Fri Mar 28, 2008
"Mark" thank you very much for your measured and polite answer.
I still have a couple of question if you would answer:
How much does your lawyer charge?
What do you know about a (real) Realtor work to be done?
no arm.... just pure curiosity, I've 'fortunately" found myself writing 8 contract, at once of couse, (time is of essence) and wish I had an assistant I cannot afford to fullfil all requirements....... (not all contract close/accepted).
truly, and sincerely...... not an argument, rather what Trulia is, probably, meant to be.
Can i reinforce..... you get what you pay for.... :)
thank you for your concern and participation.
Ciao!
P.S: if the commission is at least 3% and you back it up......I'd be glad to be your "Transaction" broker.... :)
Web Reference: http://www.hothomespot.com
0 votes Thank Flag Link Thu Mar 27, 2008
ALL commissions are negotiable!!! Contributions to closing costs and prepaids, or negotiating commission off the price of the home happens all the time. As long as all parties are informed and agree to what is being transacted all will be fine and there is absolutely nothing unethical about it!
Mark
0 votes Thank Flag Link Thu Mar 27, 2008
Send me an email to WeichertMarkZ@yahoo.com, include MLS# or address and I'll run some comps.
My office is in Lutz.
Thanks again,
Mark
0 votes Thank Flag Link Thu Mar 27, 2008
Call me at 813-849-8554
Regards
Mark Zabilowicz
0 votes Thank Flag Link Thu Mar 27, 2008
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