Home Buying in San Diego>Question Details

homebuyer, Home Buyer in San Diego, CA

do buyers agent give a portion of there commission back to buyers in San Diego ? if yest what is typical or average amount (%) ?

Asked by homebuyer, San Diego, CA Tue Oct 2, 2012

Help the community by answering this question:


It is not comun that the buyer's agent give a portion of there commission back to the buyer, but today with millions of foreclosures all over the United Estates, lending standards are very difficult to meet and If a real estate agent is being working with a buyer with low or modest income and that buyer needs a little help to close on his dream home. Why not? Of course, any decision that the agent will take has to be authorized by his or her broker.

Best of Luck,

Maria Cipollone
Century 21 Tenace

2 votes Thank Flag Link Tue Oct 2, 2012
To answer your question, rather than lecturing you......yes, there are some agents out there who may offer "rebates", as they are legal on CA.

Whether those agents are, or are not, "full service" depends on the agent and their company's business plan.
Rebates need to be disclosed upfront, and on the HUD.

And...........sorry, but I always take issue with the cliche that "you get what you pay for"........sometimes you DO, and sometimes you DON'T!

Ever pay for an expensive meal that just wasn't good?
I have..
Ever pay for an expensive haircut that looked awful?
I have.......
Ever buy an expensive pair of designer shoes that hurt your feet?
I have..........

Ever know a "full service" agent who left a lot to be desired?
I have...

Paying more doesn't assure anyone of getting top value or the best service.
That's why you need to do your due dilligence before hiring anyone.
Interview and ask lots of questions.........

Best wishes........
1 vote Thank Flag Link Wed Oct 3, 2012
It is not typical for the buyers agent to credit a portion of their commission back to the buyer unless it is a negotiated amount up front between the agent and the buyer. Generally the buyer respects that their agent works hard on their behalf and would not expect their agent to earn less. Realtors are professionals with fiduciary obligations to their clients, this position is worthy of the full commission owed to them at the close of a transaction and generally any such request would cause serious consideration for dismissal.
Commissions have been cut down due to short sale negotiator fees that need to be paid or the seller is looking to net as much as they can in this market. With those costs being factored in the agents piece of the pie is reduced even more. Folks tend to forget that there are broker fees as well that need to be paid out so at the end of the day if it took 6 months from conception of the accepted contract to the close of escrow that already reduced 2.5% commission minus the broker fees minus a negotiator fee (of course we are using a short sale as an example) then divide whats left over the 6 month period that the agent worked on the buyers behalf....this is a minimal amount. So with that being said, it is up to the agent of course if they choose to credit their client but it is highly unlikely.
Chris Boudreau
1 vote Thank Flag Link Tue Oct 2, 2012

Everything is negotiable, in order for someone to be paid, they need to have a valid CA Real Estate License, going outside that puts the paying person at risk of fines and losing their license. Personally, I don't do it. I respect myself too much as professional to do that, I do send referrals with folks that send me business and everyone is happy and most importantly in compliance.

The best advice I can give you is to hire a REALTOR, it doesn't matter how many seminars you attend or how savvy the make you feel, you need to hire a REALTOR, specially in this market. In this litigious state and society you need to be protected, we have access to real time information and lets face it, we are experts at this, no disrespect, but you are not.

Hector R. Gastelum
Realty Executives Dillon
REALTOR #01382940
efax 619-270-2516
1 vote Thank Flag Link Tue Oct 2, 2012
It is not typical for the buyer's agent to give their client a portion of their commission. The agent may cover some costs or absorb some costs. For instance many agents use a transaction coordinator and they charge a fee for that service. Sometimes the agent pays for that and sometimes the client does.
Realtors work hard to find you a home that suits your needs, negotiate the price and watch out for your best interests during the transaction. Realtors also have lots of expenses: Realtor Association fees, MLS fees, insurance and office costs.
1 vote Thank Flag Link Tue Oct 2, 2012
Home Buyer,

Broker Commisions are negotiable. The individual agent may or may not have a say in what the brokerage allows or if they allow it.

Kind Regards,

Marcie Sands, REALTOR
SImply The Best Real Estate Co., Inc.
1 vote Thank Flag Link Tue Oct 2, 2012
I don't work in the San Diego market, so I can't comment specifically on what agencies do there. However, the idea that because a company rebates a portion of the commission makes them automatically a lesser product is simply not true.

My company is a full service company and we typically offer a much higher level of service than other full service companies, but we also rebate a portion of our commission to our buyer clients. For the purposes of this conversation I won't go into why we developed this philosophy. That said, it is typical that companies offering rebates, discounts, etc... often offer a lower level of service.

What I would suggest is that you hire the best person/company you can, and if they happen to also offer a rebate great, but to hire them purely because of that is not very smart with how much money is on the line.
1 vote Thank Flag Link Tue Oct 2, 2012
Commissions are always negotiable.

Sinead McAllister
McAllister Homes Real Estate
1 vote Thank Flag Link Tue Oct 2, 2012
It varies. Generally, agents rebate a very small percentage of their commission. I reduce or rebate half my commission and share with my clients. I went to college in San Diego and I am willing to commute down to the area if you are a serious buyer or seller. Feel free to contact me if I can ever be of assistance.

Jared Turner
0 votes Thank Flag Link Thu Apr 24, 2014
Certainly, the trick is how to negotiate the rebate itself. We wrote a great blog post on how to negotiate a real estate rebate which you can check out here --> http://www.trulia.com/blog/upnest/2014/04/how_to_negotiate_a…
0 votes Thank Flag Link Wed Apr 23, 2014
i have done that in the past and in fact even bought gift cards for my rental clients/tenants .
Its a perfect way to say thank you for your business.

0 votes Thank Flag Link Tue Nov 19, 2013
First, not all buyer's agents are willing to consider contributing a portion of their commission as an opening concession to work a deal. Many are working for brokerages that are already taking a percentage of the commission and their are a lot of other considerations.

So there is no typical or average amount.

With that said, I just closed 2 transactions last week in which I provided both buyers a portion of commission to go toward their closing costs. Part of the consideration for me is how much time did I spend on the transaction - in other words, were they a buyer who was ready to buy, knew what they wanted, were highly qualified for their loan (or a cash buyer), and reasonable to work with.

If that is you, feel free to contact me tomorrow and we can further discuss what arrangements we can make - with me, the talk about pay less, get less is non-sense. I am in the top 1% in San Diego County in terms of serving the needs of buyers and sellers. I sell from the coast to Escondido to Santee to Chula VIsta.

Talk soon.

CA DRE 01775528
(7600 525-8698
0 votes Thank Flag Link Mon Oct 8, 2012
Hi Homebuyer,
The buyers agent commission comes from the seller - buyers pay the agent nothing. I know there are a few sites that advertise a rebate to the buyers, however this is for limited service. Remember the expression, " You get what you pay for"?, there are many very hard working agents who go above and beyond their fiduciary responsibilities in order to Help their client it is because they are professional agents who know that in order to stay in business they need to provide the highest level of service.
The buying process is very complicated and I guarantee that you will not be saving any money by taking some out of your Realtors pay check.
Good Luck
Janet McCarthy
Connect Realty
0 votes Thank Flag Link Wed Oct 3, 2012
Technically, the agent wouldn't be "giving back the commission" because buyers don't pay any commission when purhasing real estate. A majority of the time, the seller pays the buyer's agent for bringing a buyer and only if they close the deal.

Real estate agents work on a straight commission basis, they don't receive any benefits and have regular fees that must be paid just to stay in business. So, an agent that would would be nice enough to give the buyer some portion of the commission to a buyer (perhaps as a gift) is actually giving up some of their income.

My answer here is that although I have heard of some very generous, non monetary gifts, I have never heard of any agent giving a buyer money at closing. So, there is no 'typical or average' amount for this in San Diego.
0 votes Thank Flag Link Tue Oct 2, 2012

No, why would they?The buyer's agent gets payed by the seller when the transaction is closed, they don't charge the buyer anything. We work hard for our work and many people don't realize that until the transaction is complete.It's like going to trial without a lawyer.Check these links below.




After finding the perfect house, which can take a week or up to a year or more. Writing all the paperwork,submitting offers,getting offers accepted,using our gas,paying for realtor fees, using our time and alot more work. Once escrow opens,there is more work is involved. Here is checklist below.

1)Offer to purchase accepted by seller.
2)Check submitted to escrow by Buyer’s agent.
3)Buyer meets with loan officer and submits loan application and pre-qualification letter.
4)Buyer’s appraisal of property scheduled thru lender with seller’s agent.
5)Seller’s Disclosures given to buyer for signature receipt and approval.
6)All inspections reports forwarded to buyer, seller and agent as per contract date.
7)Buyers written response to inspections submitted to seller’s agent as per contract date.
8)Seller responds to Buyer’s request from the inspection reports.
9)Escrow instruction sent to buyer and seller for signatures.
10)Buyer and Seller sign escrow instructions and complete additional information required by escrow. All documents are returned to escrow holder.
11)Preliminary title report & CCR’s ordered for buyer to review and approve .
12)Seller schedules termite company for inspection with all information sent to buyer’s agent. If necessary, seller also schedules work to be completed and submits clearance to escrow for buyer’s signed approval.
13)Home warranty is ordered and confirmation is submitted to escrow.
14)Seller completes water retrofit and gives copy to buyer’s agent.
15)If necessary, seller completes permit research and gives copy to buyer’s agent.
16)Lender gives final loan approval. Docs are ordered/ sent to escrow for buyer to sign.
17)Buyer and Seller meet for final walk-thru and operational information exchange.
18)Buyer signs loan docs at escrow and brings remaining down payment to escrow holder.
19)Lender funds the loan thru escrow and title records the trust deed in buyer’s name.
20)Keys are typically exchanged thru the agents when escrow closes.

These are just a few things which is needed to be complete in escrow.

Michael Alex
Real Estate Consultant
cell. 619.581.9348
email. AskMichaelAlex@gmail.com
Pacific Sotheby’s International Realty
San Diego, CA
0 votes Thank Flag Link Tue Oct 2, 2012
You are asking a great question but chances are no one will provide you with the specifics of what they offer. I provide a full service to all of my clients and I will offer incentives on a case by case basis.

As Realtors we are known for making a descent commission, but little is discussed as far as how much time and money a "Good Realtor" invests. I can tell you that I will provide you with a FREE Outstanding service and not make you pay for it.

Ask yourself this, would you rather have a hospital resident operating on you or would you want a Surgeon? I would love the opportunity to meet with you to discuss what I can do for you and to answer any other questions you may have.

Feel free to contact me directly or visit my website http://www.militaryhomesinsandiego.com


Rashard Scott
Keller Williams Realty
Cell: 619-565-3604
Email: rashardscott@kwrealty.com

CA DRE# 01703306
0 votes Thank Flag Link Tue Oct 2, 2012
A full service realtor generally does not give their commissions back to their buyers.
It's just not profitable. Does a car salesman pitch in their commissions when they sale a car?
No, because they would not make any money if they did that. They would not be able to sell cars.
If a buyer wants a discounted realtor, they would have to face the fact that they would have to receive a limited service, and would be taking on greater risk for major problems to occur.
Hope this helps!

Kevin Sanderlin
Keller Williams Realty
Cell 858-212-4702
0 votes Thank Flag Link Tue Oct 2, 2012
Depends on what kind of agent you want to represent you? Do you want an agent that's going to fight for their income just as hard as they fight to get you into the right property? Or do you want an agent that is going to just give in? You're hiring an agent to negotiate what will likely be the biggest purchase in your life. Do you really want to put your trust and financial well being with someone just because you got an extra couple thousand dollars back in closing costs?

Good luck with your home search,

Ryan Bourda
Coldwell Banker
0 votes Thank Flag Link Tue Oct 2, 2012
Every transaction and client/broker relationship is unique so this is not an easy question to answer. I can tell you that I have provided clients with a very large percentage of my commission under some circumstances. Rarely do I discuss this with the client ahead of time though and the clients are not expecting anything in advance.

Sometimes, negotiations may require a relatively small amount of money to close the gap between the buyer's offer and the seller's desired price. Agents can use part of the commission to allow the transaction to be closed as long as everyone involved is aware of it and approves.
0 votes Thank Flag Link Tue Oct 2, 2012
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