Howard, I suggest you remove your answer as many realtors and people will respond with this. I am sure you were unaware of this.
>> Thanks Howard. But I thought that typical commission was 3%, for the buyer's agent. So if the house was 740K the commision would be 22.2K...... I thought the relo company took 40%, leaving $13,320. and the remainder was split between the broker and agent, depending on their agreement.....which typically is 50%.
YES Jim that's very close to being a perfect understanding. Except that the more typical total commission is 5% not 6%. So the ACTUAL buyers agent would only make 1.25%, not 1.5%.
Anyway, this is academic. Your friend is not allowed to accept official compensation from you for your transaction. This would be completely illegal. BUT ... GOOD NEWS is he IS YOUR FRIEND and Christmas is just around the corner. So get him something really nice if you like. Assuming that your friend is a typical guy and likes electronics, either of these would be a really nice thoughtful gesture:
Western Digital WD TV Live (I own this and it's awesome)
Roku HD XR (I'll be getting this very shortly - excellent for streaming movies from the Internet)
Congratulations that you have a really good heart though! And West Chester is an awesome town. I forget the name of the Japanese place there but it's great.
Why on earth would you purchase a property without professional representation?
Did your agent have you sign a representation agreement?
Let me suggest this: why don't you sit down and ask your "friend" the agent. If i had shown someone property and helped them for a YEAR, then they bought without me, two things:
1. Written buyer broker agreeement would have been set at the beginning...to avoid this very issue.
2. I would have had them represent me the purchase....boy, I cannot understand you logic.
Agents can charge an hourly rate for consulting. As far as I know, it must just be paid through the brokerage as an agent cannot get paid directly for services.
Really? Why is that? I mean, I know that it would have to go through his broker, but ... here in Washington State, brokers can be compensated for their services even if they did not broker the sale.
I appreciate Jim, because apparently he received real value from his friend, the agent, and is willing to show his appreciation. Now, let's hope your new home starts to show some of that appreciation!
LOL!!!! You may not be allowed to discuss this topic but Jim and I can do exactly as we please! The %s are incredibly well-understood by consumers and the general public. These are not trade secrets. Just because there are things that agents can't discuss openly on the Internet has nothing to do with answering Jim's question. Thanks anyway.
The only legal way for a Realtor to accept compensation in regard to a real estate transaction is through their broker. One nice thing you could do for your friend is to make sure you refer any and all real estate business to him. You can do that for years to come and he will benefit much more than you "making him whole" after all the homes he's shown you. This is something you would have done anyway if he had written the offer for your new home. Real Estate is a referral business, so become his advocate/promoter.
Recent post on Active Rain about a Trulia thread being revied by the Feds for prosecutable violations. Always remember that there is no typical or usual or customery brokerage fees all are negotaiable.
Any validity to this?