John, or whatever your name really is. Is working for the borker you referenced below really the best option for a Realtor? For the seller? Is their site/company a real competitor in the marketplace? Poll 10 random people and see if they've heard of them. Then ask if they'd want their sign in their yard. Bet the answers are no and no. Why wouldn't the seller want a full-time, experienced, national/Global marketing expert company marketing their home?

I predict in next 2 years, rebates will go as high as 75% of buyer's agent commission. Current highest is 66% by REDFIN but REDFIN hasn't come to detroit metro yet.

Some agents are paying only $750 per closing fee to their broker. See link below. If you are paying more than that, it is time for you to shop for a new broker.

Gina, my thumbs down belie your opinion, but please know that I am very appreciative of your comment-
THANK YOU. Too much opinion floating around that's not only inaccurate, but offensive to those of us looking at flexibility as the key to better transactions all the way around. To equate that with incompetence is ridiculous. To have the same agents participate in the "all commission is negotiable" is very transparent, as well- clearly, there's a push to make it NOT negotiable. Sellers and buyers will make the call, as Jasemanus has done. Again, thank you.

Scott- you ask what Derek's motivation was? I think that Derek is thinking ahead of the game. Thinking realistically about the market AND reacting accordingly.

What I find interesting is that NO AGENT ever responds with any realization about the Sellers. AGENTS-- do you think that ONLY the SELLERS have to take a hit in this market?? If you do, you wont for long. Sellers that have owned, maintained, upgraded, and remodeled their homes are getting NO APPRECIATION . Some have owned their home for many, many years. All of the out of pocket money they spent is gone, not to be recouped. And you think that this doesn't affect you too? Wow. Must be nice to be so isolated. Sure, you think because houses are selling for less, that is enough of a hit for you--well, that is simply not going to be enough. Sellers are way to sophisticated these days and you really need to come up with something better than "you get what you pay for" to engage with them. That is a tired, old, tactic. I am sooo tired of hearing it.

Thank you, Laurie with Options Realty for some of the most intellegent, and refreshing comments I have seen EVER on this board.

Wow! Has this gotten interesting! I felt I had to weigh in to make sure my previous response wasn't part of the problem.

The real estate market is changing - faster than what most people believe. And the people most mystified are the agents who are actually in the business. As an example, it's interesting to watch seasoned Realtors struggle with the simplest technology yet forcefully expect to be paid the same commission as the Realtor with more up to date tools.

I see this question as growing pains from the change that's occurring. We'll all be taking lower commissions (and already are) whether we like it or not. Bank foreclosures and short sales are creating a business model that will be hard to deviate from if we don't snap out of it soon. Our business model is changing to one where a few Realtors close a lot of transactions - for a smaller percentage and for less direct service.

I just got back from a doctors appointment. In times past the doctor knew who you were and what was happening in your life. Today many of them wouldn't recognize you if they met you on the street. This is the way the new real estate model will eventually work. Perhaps not quite as impersonally as I've described but similar just the same.

For example, one of the main complaints about working with an agent who has a team is that you don't get to talk to the agent very much - you spend so much time talking with their assistant that you wonder who your agent is. Another complaint is with foreclosure agents is trying to get to the listing agent and be heard above the "noise and clutter" of the activity foreclosure listings create. Both of these situations are examples of the new real estate model that's coming.

So is Derek's motivation that he already has an edge in his business model? Is he hoping for volume or referrals from this client? Is he happy living on a low income? Or does he just have a better idea? We don't know, and it's Derek's choice to handle his business the way he chooses. That’s his right and the clients right as well. Clearly Derek has what this client was looking for.

It is noteworthy that some Realtors don't know if this is legal or if it violates RESPA regulations. I see that as just another growing pain of change - agents that don't know their own business and how to respond to such an idea!

Agents have the right to run their business as they see fit - provided it's legal and ethical. I hope both Derek and his new client get what they want and both profit from the relationship.

But, as I said earlier, be careful what you wish for. You may get it.

J-

Thank you for your post, as I think it took this discussion in an entirely different direction ... a direction in which it needed to go. As you and I discussed, it is not a RESPA violation as long as accounted for on the HUD-1, which it will be.

Someone in the office in which I work felt it necessary to print the early goings-on of this conversation, put an " * " by my post, and put it in my mailbox. I don't understand what the purpose of this action was ... maybe just to let me know they were policing the postings and didn't approve of mine.

At any rate, I am excited about working with you, as you know, and am thankful that a resource such as this was able to connect us. The world is changing, Real Estate is changing, and I feel the only way to survive is to adapt...in business, and in life.

Derek

If the responses were simply, "my broker doesn't permit it", "I can't afford to do a rebate", or "I don't believe in rebates, and here's why", it would make more sense to someone asking. Instead, it is often about the "inferior" services of those that are fine with rebates. Jasemanus asking about rebates isn't asking about the service level provided; agents that offer rebates have the opportunity to present this to a buyer/seller themselves. It's bad form to "badmouth" the competition, particularly with generalizations, and smart consumers see right through it. Is your "split" with the broker, or personal financial circumstances their problem? Only if you can convince a buyer or seller to make it so- otherwise, you're left with explaining your value, and marketing- if it's worth more, great. If, as is up to the buyer or seller, it isn't, there's no reason to denigrate a practice that is becoming very common.

Jasemanus,
I am glad you found a good realtor who is working hard for you. I think that is the bottom line, however my feelings on rebate is not fear of change. Believe me, with our market these day I change with it (sometimes on a daily bases- : ) ) I guess what bothers me when someone asks for a rebate is this......This rebate comes directly out of my pocket. My company does not give the rebate, but me.
so it is like me going to where you work and buying something you sell and ask you to give me a rebate out of your paycheck. Most of us Realtors are already working harder for less money due to the fact sales are down and prices have dropped. Mind you I LOVE what I do, and it is what it is right now, but I feel like when giving a rebate on my services it puts me in the same catagory as buying electronics and sending in a rebate card..........I value myself and my services more then a blue light specail. You got one of the good ones and that is great, I am working on a sale right now (buyers side) and the listing agent has given a rebate to his seller, the listing agent down right told me he is not doing much to get this sale through, I need to do it, as his commission is cut! I am very proud about what I do, I love my job.....I am lucky as my customers have not asked me for a rebate as of today..........so it is not change I am worried about, it is the value that people put on us and ot jobs.
Bet wishes in your new home!

I wasn't going to comment, but my question seems to have sparked quite a bit of interest. There seems to be a lot of misinformation propagated simply out of fear of change. My advice to homebuyers is to remember that everything is negotiable, including (if not particularly) services.

As to the implications that a realtor willing to concede to a buyer's rebate is somehow worth less than a realtor who is not; this is simply propaganda and in my experience, it is the opposite of the truth. I've been working with Derek Bauer, who was not only the first to reply, but also the most positive towards this idea. He is resourceful, hard working, and highly ethical.

In fact, I think that there is more going on here than people have chosen to see. I believe that realtors willing to concede to a buyer's rebate are stronger than the average realtor. They do not fear change because they are confident in their ability to provide an uncompromised level of service in a changing marketplace; these are true competitors and you realtors who fight change need to look out for them, not buyers like me.

Yes, you will probably find someone who will do that for you providing the law permits in your state. Discount brokers give discount service. Full service brokers give full service. Getting preapproved and locating the available properties are the first two steps. The steps to follow next are where you save your money.

Every week I hear stories from people about how dissatisfied they were with the deal they got when purchasing a home; then I learn that they used a discount broker, bought from a FSBO, or did not have a buyer's agent at all. I am sorry for these people but they made their choices and have to live with their decisions. There is nothing that we full service agents can do to help you after closing.

Buying a home is one of the largest financial investments most people make in their lifetime; why would you risk so much to save so little?

hello,
I am a mortgage broker, you can ask for 3% for a down payment and up to 6% sellers consessions form the seller.
feel free to contact me if you have any questions regarding this.
I have extremely competitive rates and been a broker for 10 years.
Bambi 248 933 9398

Jasemanus, you might visit this website in order to understand the positive side of rebates for consumers:
http://www.usdoj.gov/atr/public/real_estate/index.htm

Very good - Well said Scott!!!!

2 thoughts come to mind. The first is that you get what you pay for. I've seen Realtors skip showing houses because there was a 1/2 % drop in their fee. What you're suggesting may work - provided that you don't need much help from your Realtor. If you need a lot of help or want to look at other homes they're going to wish they had never met you - and their service will reflect this.

The second reason is: Be careful what you wish for, you may get it. I wouldn't waste my time with a buyer like you. Any refunds/compensation offered by me are to my very best clients only - the ones that have purchased repeatedly or referred people that did.

Your agent must be very, very careful doing something like this. While it may (and I emphasize "may") be legal it skirts the real meaning of the RESPA laws.

I find it interesting that, in this period of incredible deals, a buyer would focus on taking part of their agents commission. I strongly believe you'll wind up better off skinning the seller rather than the person working for you.

Okay, thanks! I was not sure about this...........hmmmmmm? Not sure I am a big fan of this, Kind of feels like a K-mart coupon!

Rebates to buyers & sellers from licensees are permitted, according to the 2006 Michigan Association of Realtors Legal Report. The Michigan Department of Labor & Economic Growth (DLEG), "has taken the position that compensation paid by a licensee to a buyer or seller in a transaction does not constitute a referral fee and is not prohibited. Realtors are therefore free to offer merchandise and/or cash rebates to their clients and/or customers.(...as long as there is no element of chance" (violating gaming laws). Real estate licensees cannot pay REFERRAL fees to non-licensees. Read about it at: http://www.mirealtors.com/members/legal/documents/legalupdat…

Maybe I am wrong, but I think it is a RSPA violation to give a rebate to a buyer...........buyer's cost paid by seller is one thing, but buyer rebate paid by realtor to buyer........is a violation.

Sounds like you may need seller’s concessions to complete the transaction. I don't offer rebates to buyers, I just get the best possible pricing for them. Would you work for around half of your pay and do your best? Most people won't. In Metro Detroit sales are way up this year and buyers agents are very busy, you may be setting your self up to lose 5% to get a 1.5% rebate at closing. My recommendation is to interview a few agents and see who will do the best for you. Good luck and I’m sure you can find an agent to do that if that’s what you want, maybe calling the listing agents of the houses might help as by Michigan law they are required to get the best possible price for the sellers and they could get the sales price up and double dip it and still give you the rebate you want. If you are looking for a good solid agent visit my web site.

You'll find someone.... But you u want the best service right? You shouldnd't limit realtor commisions on your purchacse, You might find the ideal agent to get you the perfect house but wont tell you about it because you already want to slice thier commision. You should get into that after they help you out. Dont bring it right now. Reators are more of a benfit than you know, nowadays alot of them work for free because of the market. Ask them for a limited service, I know their are alot around you.

Brent Bester
Mortgage Professional
614-622-8916

Good evening!

Yes, I would be interested in speaking with you about this and working with you. I would prefer to do it offline instead of blindy agreeing to a pre-set percentage before I know what price range you are looking in, etc.

Please call or email me, and we can discuss in detail.

Professionally,

Derek Bauer, Associate Broker / Realtor
Real Estate One - Farmington Hills / West Bloomfield
http://www.DoorToDreams.com
derek@doortodreams.com
734.678.4745 - direct