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.
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.
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.
JD â€œDanâ€ Weisenburger, GRI
Vanguard Realty, Inc. GMAC Real Estate
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 â€œthe 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.â€
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.
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.
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?
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!
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.
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?
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?
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?
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.
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.
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.
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!!!!!!!!!!!!!!!!!!!!!!!!!!!
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
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,
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.
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.
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. :)
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.
P.S: if the commission is at least 3% and you back it up......I'd be glad to be your "Transaction" broker.... :)