Home Buying in Chicago>Question Details

Ukievillageb…, Home Buyer in Chicago, IL

I'm interested in one and only one house and looking for a buyer's agent offering a significant rebate

Asked by Ukievillagebuyer, Chicago, IL Wed Nov 9, 2011

I have been watching houses in our neighborhood for two years and am now very interested in one particular house. That is the only house I want to see and either I will buy it or just continue to stay in our current place. There will be no looking at multiple properties. If we decide to buy it will be an easy commission. I am looking for a significant rebate on your commission. More than I could get from redfin. The house is in the Ukrainian Village neighborhood of Chicago and is priced in the low 300's.

If you are interested please contact me at risprasa@gmail.com or provide your contact info.

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Answers

33
In all fairness people..........we are independent contractors, and therefore are free to run our "businesses" how we see fit (or how our brokers permit us to run them).

Rebating is legal in approximately 41 states.
We don't have to agree with that concept, but there's no need to attack the Poster and be rude....or denigrate those who have adopted that business model.

To each his own.

My personal opinion of why agents may offer rebates is just that...........personal.......I see no reason to share it in a public forum, plus, imo, it makes you look rather strident and banal when throwing out those cliches like "you get what you pay for".


The poster simply asked a question.......if you're not in Chicago, or are, and not interested in working with him on those terms.......then just say no!
2 votes Thank Flag Link Fri Nov 11, 2011
I'm with Debbie. Congratulations.

You are a unique client, and life is short enough that if there's only one house in the world that will make you happy and you just want to buy it, then have at it.

Outliers are interesting people, but they do not keep the doors of businesspeople open. Most people are best served by real estate agents, and that's why there's a million of us nationwide.

You do not have to be an idiot to use a real estate agent. In fact, you have to be somewhat smart, because even in this economy, the price of homes requires that you have some type of employment that requires intelligence, skill, and judgement.

The overwhelming majority of people do not have the time to catch up to a professional real estate agent's skill and networking level. Sure, you COULD learn all about homes, get a license, learn how to evaluate inspectors and lenders and all of that . . . meanwhile, we're learning more about homes every day . . . catch me if you can!

Anyway - the real point is that Trulia is to be congratulated for providing a forum for you to obtain the services you required.

Best wishes,
1 vote Thank Flag Link Mon Dec 12, 2011
Congratulations and thanks for the update.

Glad it has worked out for you so far.....hope you have a smooth trip to the closing table...

Enjoy your new home!

ps just curious - if it hadn't worked out for you with this particular home.........would the agent have continued to work with you offering a 50% rebate, or might that figure have changed if more time elapsed before successfully finding and buying a home?

Best wishes
1 vote Thank Flag Link Mon Dec 12, 2011
An Update:

Within 30 minutes of posting this I had at least ten offers in my email. Three went as high as 50% of the commission rebated. I think I could have bargained for more but did not. I chose the 50% offer that seemed like the best agent.

I visited the house three days later. On day 9, I visited for a second time. This was the only house I ever saw in person. On day 13 I made an offer. On day 16 I had an accepted offer. The inspection period was a little rough but we have come to an agreement with the seller over inspection items.

For those of you who reply that the realtors job is not to open the door but to guide you through the process, I would point out that you are asking about $700 an hour for your services.

For those of you who responded that I don't cut my salary because I'm asked to do so, so why should realtors. My answer is because the market demands it. There are realtors who are willing to work for less. If you have all the work that you can handle then I guess good for you. You probably do not need to cut your rate. However it seems that most realtors are looking for clients. I also wonder if my half price offer is any less per hour than your full price clients. I'd bet that my realtor will make over $300 an hour at the conclusion of this deal. If you make $300 an hour, 50 hours a week, then you would make over 750K a year.

Also I provide consulting and other business services. I will indeed cut rates if the rate cut is justified. I have to compete just like anybody else. And even salaried employees have to compete too. I think that Michigan auto workers should have learned by now that there are auto workers elsewhere willing to work for less. There are also realtors willing to work for less.

Also I think that there should be some recognition that not every buyer is an idiot who needs there hand held throughout the process. Some of us are capable of finding homes that meet our needs, finding comps, preparing bids, negotiating bids, finding inspectors, and learning the general real estate procedures for a specific locale. I wanted a full service agent this time because it was my first time and I was not sure what to expect. Next time I am going to look to pay by the hour. If getting a license is simple enough then I would be happy to go that route.
1 vote Thank Flag Link Mon Dec 12, 2011
Contrary to what you might think....our work is not opening doors to homes, it's navigating the process once the contract is signed.
1 vote Thank Flag Link Wed Nov 16, 2011
Buyers insist you to give part of your commission to them represent them in a transaction. hmmm
1 vote Thank Flag Link Fri Nov 11, 2011
Thanks, guys & gals!

It's just lazy to play the "stick it to the man" card against real estate brokers, who are pretty much the least "man"-like industry there is.

Almost all of us are independent contractors, free to come and go between brokerages at will, we are always in competition with each other and, regardless as to what the FTC thinks, our commissions are not fixed or standard. There's a basic price line where it makes sense to stay in business; the market won't bear more and our business (often) won't tolerate less.

Anybody who has ever been on more than three listing appointments is aware that agents compete on price. If you've never heard, "We're going with so and so because they'll (either cut the commission or add something of value to the deal)," you need to get out more!

Real estate brokers do often compete on price, and some compete on service. IKEA furniture has its place in the market, and sometimes, IKEA is all a consumer wants.

All the best,
1 vote Thank Flag Link Fri Nov 11, 2011
I agree with the lady from New Jersey in that we are all independent contractors and run our businessess as we see fit. However, if we make an environment to get into a rebate price war Where small independent brokers will inevitably be run out of business. For example one could run a promotion forgoing all but $500.00 of commission half to the buyer for decorating half to make a larger offer. Who would get the buyers, and all future buyers will expect the same from all brokers they deal with...I agree you, do what want but in my humble opinion that is a bad business model that may put one using it out of business if that's all they can offer. I see the question as taking advantage of the agent..That is only my individual viewpoint
1 vote Thank Flag Link Fri Nov 11, 2011
A buyer asking for a kickback shows what he thinks of the industry. At a recent seminar I attended it was revealed that Real Estate Agents rank lower than used car salesmen. Even with the extensive and ongoing training we have to undertake. I believe the professionals practicing in the field establish the standards. Word gets around, establishing giving kickbacks as a standard operating procedure is not good for the industry, how do you plan how much of your hard earned income you will give away to a person who thinks so lowly of your profession to in essence say you're not working for it any way. This is just one man's opinion
1 vote Thank Flag Link Fri Nov 11, 2011
I don't always agree with Mack, but he is 100% correct here. I would add that we live in a more or less free market economy and we are free to offer our services for less (or more) money. Times are hard right now, and if offering deals makes financial sense, I see no reason not to.
1 vote Thank Flag Link Fri Nov 11, 2011
I actually lauged out loud when I read your posting. You will get exactly what you pay for and it won't be a great agent it will be someone who is so unsucessful that they are willing to do almost anything to earn a little money.
The comments that you will be demanding less service are even funnier.

Good Luc and no complainging when you realize later that the agent you hired while demading a kick back actually did you no favors.
1 vote Thank Flag Link Fri Nov 11, 2011
Mack - I will just say "Ditto" to your remarks..........no need to be repetitive, and you said it all so well!

Seth - just out of curiosity - you gave such a lengthy response....but...you were so busy "assaulting the syndicate" (whatever that means),and venting or trying to make your point .......that I am still not sure if you were offering a "significant" rebate to the poster or not!!

So.....was that a "yes", you're interested......or a "no"?
As it stands.........Several others here (from the syndicate) already agreed to work with him!
1 vote Thank Flag Link Fri Nov 11, 2011
I work hard for my clients and do not do rebates. Did you employer ask you to take a reduced salary when you went to work?
1 vote Thank Flag Link Wed Nov 9, 2011
It’s great when you find the right house to buy! my advice is to make sure you find an experienced agent that knows your the market well and who can negotiate aggressively on your behalf and inturn get you the house you want …I would not concern yourself with a rebate… you get what you pay for has been my experience
1 vote Thank Flag Link Wed Nov 9, 2011
A good agent can save you literally thousands in negotiations. Someone who is willing to forgo 40% or more of there commissions isnt someone who does business. Its a desparate agent. I would suggest getting your own real estate license and representing yourself. If you want a great agent looking to represent you, I would be happy to help. But I dont offer rebates. Also, in the state of Illinois, I am not sure how much one can give back legally. Regardles, best of luck.
Web Reference: http://AmericorpRe.com
1 vote Thank Flag Link Wed Nov 9, 2011
If that is the house you want, make your own offer to the listing agent, If you use a real proffessional you will not get a rebate (kickback) not squat on their commission.
1 vote Thank Flag Link Wed Nov 9, 2011
I would be concerned about the level of experience and professionalism of any agent willing to take you up on this offer. Finding the house is just the first step. A good agent will save you far more money due to negotiation skills, post offer procedures, and industry contacts than you will save on a commission rebate.
Best of luck,
1 vote Thank Flag Link Wed Nov 9, 2011
By the way..if you do not see it today - you really do not want the property and if nobody buys it today its not a great deal.. $100,000,000 in experience makes that a fact
Web Reference: http://www.joeschiller.net
1 vote Thank Flag Link Wed Nov 9, 2011
That is not happening, the buyers agent has no control over the commission and the listing agent has a contract for commission from the seller, you either buy it at asking price and be happy with that or you can watch it eventually get sold to some one else!
1 vote Thank Flag Link Wed Nov 9, 2011
There is no such thing as an easy commission. Finding the right house is the easiest step. If you want to see which agents may be compatible with you, check out the link below connecting you to Active Agents in the Chicago area.
If you decide to go with a discount broker, remember that the seller is not using a discount broker; they are represented by a full time, full service professional.
1 vote Thank Flag Link Wed Nov 9, 2011
You do not indicate if the one house you want to buy, correction, may want to buy, is listed with a broker and under what conditions. Exclusive right to sell means anyone who buys it, a commission is paid by seller. A split with buyers agent may or may not be offered. You want a share of the agent's commission, usually half of a half of the listing fee. 6% to list, 3% to buyers side, 1.5% to agent for buyer. If not listed and under a contract to list and sell, you deal with the owner directly.
1. Why don't you knock on the door of the house you want and make an offer? See what happens.
2. If listed, It may not be exclusive right to sell and owner will deal with you directly. Get a lawyer to write to the contract.
3. My fee for this advice is nothing.
But, what happened? Tell us how it goes.
0 votes Thank Flag Link Mon Dec 12, 2011
outstanding answer from Karen Parsons.
0 votes Thank Flag Link Mon Dec 12, 2011
I can assist you in financing your next home. As a professional Mortgage Banker, I have the expertise and lending base to structure the best loan in the market for you..

I will issue you a $450 closing credit if you apply today at the website below.

Alex Romo
Senior Vice President
Chicagobancorp
Direct: 312-738-8430
0 votes Thank Flag Link Mon Nov 14, 2011
I'm interested in assisting you. My current coupon that I offer is $750.00. I'm a top agent in my field amd with a powerful name brand, REMAX. I will honestly and professionally guide you.

Sylvia Martinez-Johnson
RE/MAX Platinum
312-842-2600
0 votes Thank Flag Link Sun Nov 13, 2011
Well, Seth, calling real estate agents a "mafia" doesn't really help your case at all.

The reality is that in most enterprises, you don't get a discount by doing some of the work yourself. Nordstrom's doesn't give you a rebate for knowing your own size and style. Art galleries don't give you a rebate for pointing to something and saying, "I want it." General contractors don't give you a discount for getting your own plans drawn up.

Real estate commissions are not service based, they are results-based. The states license us as salespersons or brokers, not as stagers or marketers or home showers or contract writers. The fact that we provide these services doesn't mean that we can necessarily charge for them (a real estate license isn't sufficient to start a staging business); what we can get paid for is brokering real estate.

You may think that real estate is comparable to an open-air food market in a second-world nation, but I do not share that viewpoint. I do know that in most restaurants in America, the corkage fee pretty much covers the gap between buying the wine at retail and from the bar. I am curious to find out how it works out for you, going into a local two-star restaurant with your catch of the day, asking them to fry it up.

At the end of the story, if you are to ask those of us who do not provide rebates to accept those that do, then I think you have to accept those of us who do not. I don't care either way - if somebody wants to write this person up, that's their business, and I wish them well.
0 votes Thank Flag Link Thu Nov 10, 2011
The answers to your question show you how hard the realtor mafia will go to protect the 'trade' even when it's obvious by your query that you demand less service than the average buyer, so why not compensate you.

Look, I'm the first one to rip on idiot buyers who come on here for free advice and want to attempt to do what a professional does. But I'm also happy to assault the syndicate which I find myself a member.

Nothing in your question is insulting the real estate industry (which, if you haven't noticed, isn't exactly hard to do). Whoever said finding the home is the easy part should increase their medication effectively immediately.

As a dedicated buyer's agent, I can easily spend months, upwards of over a year finding the right home for a client. You, yourself, have spent two years! Sure, negotiating a contract, knowing what to look for, and how to make sure the buyer doesn't get screwed is an essential part of the realtor's job. But what percentage? I'd say at least half a buyer's agent job, if not more is working with the constantly in flux emotions of a buyer in order to deliver them one of the hardest material goods imaginable...a home that meets their various needs.

If I go to my mechanic and say I've already found the problem and here's the part, I get a discount. Always.

If the plumber comes to my place and says he's going to charge me more because it's a two person job, I work with him. I'm providing material value, so my price goes down.

In many open food markets of the world, you can bring your food to the stall, say some snapper to the fishmonger, and he'll cook it for you, much cheaper than if you bought his grilled snapper.

How idiotic is this industry to lambaste you for the most reasonable request a consumer could make?

However, your job is equally difficult. An agent gets paid regardless, so what's his incentive to get you the best price. You are taking part of his (or her...sorry, blame the British grammarians) commission. So why bargain lower. The only way you will find an honest reputable real estate agent is through a trusted referral. And when that isn't available, you need to find testimonials. Juicy personal testimonials (not, "Jon Doe was great, I strongly recommend him") that stand tribute to an agent's character. Check out their website, Linkedin, various review sites.

In the future, since the odds are split that you may not get the home you want, it is probably preferable to word your request more respectfully, and you'll probably get a better selection of qualified agents.

And if it's west of Western, it's not really Ukie Village so don't get sucked into Ukie Village prices.
0 votes Thank Flag Link Thu Nov 10, 2011
We offer buyer's rebate all the time. Give me a call.

Thank You,

312-217-3237
0 votes Thank Flag Link Wed Nov 9, 2011
Why not offer a retainer, rather than look for a rebate? You obviously want someone to look after your interests, but if they know they're only going to get paid if you buy this house . . .
0 votes Thank Flag Link Wed Nov 9, 2011
I want $300 an hour starting now
Web Reference: http://www.joeschiller.net
0 votes Thank Flag Link Wed Nov 9, 2011
Please call me. I've done this before. I can give you a huge rebate, and I will still represent your interests.

Anthony Cavalea IV
Managing Broker / REALTOR®, SFR
Able Realty, Inc.
Cell:(773) 368-5614
anthony.cavalea@gmail.com
0 votes Thank Flag Link Wed Nov 9, 2011
Give me a call. As an independent, I am flexible

Dirk
0 votes Thank Flag Link Wed Nov 9, 2011
If you know what you are willing to pay and not concerned about the condition of the house and not worried about the seller's disclosures, and not worried about inspections or loan contingencies, then just contact the listing agent! The listing agent will have the most commission to negotiate with if they receive both buyer and seller sides. Best, Terry Bell, Realtor, Santa Rosa, CA
0 votes Thank Flag Link Wed Nov 9, 2011
I would be happy to help. Please contact me by email jeffdonnellan@gmail.com or by phone. 773-828-8151.
0 votes Thank Flag Link Wed Nov 9, 2011
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