Home Buying in 10003>Question Details

Thaddeus Hac…, Home Seller in 11101

When real estate brokers purchase a home for themselves, do they get a commission?

Asked by Thaddeus Hackworth, 11101 Wed Jun 24, 2009

Can a licensed real estate broker collect the buyer's agent portion of a commission when buying a home? (In essence, acting as their own buyer's agent)?

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Hello Hackworth and thanks for your question.

In short, yes, I did get a commission to buy my own home. It is one of the rare "perks" to being an agent. However, keep in mind that whlie we do get the commission, our liability is slighlty increased in any transaction because we are no longer just an "ordinary man" purchasing a home, but an "expert" and that title greatly increases the assumption of what the agent "should" know in the transaction.

So, to answer your question, we do get a commission, but it comes with strings attached.

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
1 vote Thank Flag Link Wed Jun 24, 2009
Some types of information are imperative to disclose such as whether the agent is acting for himself or herself (SELF-DEALING). New York forbids brokers and salespersons to buy or sell property in which they have a personal interest without informing the seller or purchaser of that interest. It is prudent to make such a disclosure in writing as part of the purchase contract before it is signed. If a buyer's broker has a similar type of relationship with the property seller, that relationship must be fully disclosed to the buyer.

Problems can occur when a broker lists property, then decides to buy it and collect the agreed-on commission. At that point, those brokers represent themselves but continue to act as the sellers' agents as well. IT IS ADVISEABLE FOR AGENTS IN THIS POSITION TO GIVE UP THE LISTING, COLLECT NO COMMISSION, AND JUST REPRESENT THEMSELVES AS BUYERS.
Web Reference: http://www.clovelake.com
1 vote Thank Flag Link Tue Jun 30, 2009
Real estate agents are entitled to the buyer's agent portion of a commission when purchasing a home, It is possible for that agent to receive the commission as a credit when buying the home, which would reduce the total purchase price of the home.
0 votes Thank Flag Link Wed Dec 5, 2012
Wow, Robin; so how do real estate agents get loans to buy property?
0 votes Thank Flag Link Wed Feb 10, 2010
I don't have an opinion on whether the agent can collect a commission, but if they are applying for a loan, they will be highly scrutinized, and most lenders do not want there to be a relationship between the borrower and the property seller or real estate agent involved in the transaction.
0 votes Thank Flag Link Wed Feb 10, 2010
Hello Folks, I'm an underwriter at a small company. This specifically is quantified as an At Interest Transaction. It's not considered Non-Arms Length as the party representing themselves as the buyer is not also representing the seller in any capacity, however they have an increased interest in seeing the transaction closed. As such the underwriter is responsible for 1) verifying that the appraiser has full understanding that the buyer is representing themselves as an agent and collecting a commission, and 2) ensuring that the collateral value assessment is valid. For these transactions most lenders won't touch an investment property but will consider exceptions for Primary Residence & 2nd Home purchases.
Flag Mon Jan 6, 2014
Basically - the brokerage gets the commission, not the salesperson.

Policies do vary by brokerage.
0 votes Thank Flag Link Wed Feb 10, 2010
Usually yo negotiate asif a comission is being paid, then deduct it from the selling price. It saves the owner some transfer taxes as well.
0 votes Thank Flag Link Wed Feb 10, 2010
As stated previously it is legal for agents to represent themselves as a buyer agent and collect a commission. It is a good idea to disclose you license status when you make the original offer, when I buy real estate I usually have the attorney put it right in the contract that I am a broker.

All the best!

Kevin O'Shea
0 votes Thank Flag Link Tue Feb 9, 2010
Yes, they can. My former company had a policy that on a one-time purchase of a home for yourself, you could keep the whole buyer-side commission and did not have to split it with the company.
0 votes Thank Flag Link Sun Jul 5, 2009
Yes licensed real brokers can collect commission.

Anna
0 votes Thank Flag Link Sat Jun 27, 2009
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