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Negotiating when selling is one thing, but I think giving a buyer "kick back" is another. Maybe a realtor can give a better explanation. But as I see it, unless your realtor is a broker with their own agency, any kick back would come directly out of their "salary". They would still be responsible for the taxes and for whatever percentage they have to pay their broker.
Quote:
Originally Posted by coastalgirl
my question is why would it be ethically wrong for a realtor to work out a deal with you? any good realtor should be willing to negotiate. my neighbor is a realtor and he offers all of his friends that are clients a percentage back when he gets his commission. is this a NC thing? we interviewed 7 or so realtors when we were selling in SC and negotiated with each one of them.
OP: if you want this builder, find a realtor who will give you a percentage back.
Negotiating when selling is one thing, but I think giving a buyer "kick back" is another. Maybe a realtor can give a better explanation. But as I see it, unless your realtor is a broker with their own agency, any kick back would come directly out of their "salary". They would still be responsible for the taxes and for whatever percentage they have to pay their broker.
that makes sense about the taxes, but I don't see how it's unethical. If they want that client, they might just have to make a little less money. Maybe I'll ask my neighbor about it.
that makes sense about the taxes, but I don't see how it's unethical. If they want that client, they might just have to make a little less money. Maybe I'll ask my neighbor about it.
ask your neighbor and specifically ask about New Construction. I "believe" there are specific guidelines concerning new construction that prohibit that sort of kick back. That's one of the reasons this builder is probably unwilling to give the OP the 3% personally. I would have to look it up specfically for NC (and I don't really feel like it now) but if my memory is on tonight, it has something to do with new construction.
ETA: ALso occured to me that the buyer's agent has an obligation to disclose the kick back. For example, I sell a 100k house with 10% commision. If I knew the buyer was going to get 5 from the agent, prehaps I would have lowered the price and commission. There are tax implications here. Not sure. Maybe a real estate pro will weigh in
my question is why would it be ethically wrong for a realtor to work out a deal with you? any good realtor should be willing to negotiate. my neighbor is a realtor and he offers all of his friends that are clients a percentage back when he gets his commission. is this a NC thing? we interviewed 7 or so realtors when we were selling in SC and negotiated with each one of them.
OP: if you want this builder, find a realtor who will give you a percentage back.
A realtor is not allowed to give the buyer any portion of the commission after the sale is consumated. if there is any "rebate" to the buyer it must appear on the HUD statement at the time of the closing and be disclosed to all parties (buyer, seller, and mortgage holder).
I think it is hilarious that some people think that the OP should give money to a realtor because "Times are Tough". It is their money. I can understand that a buyers agent should get a commision on finding a house for a buyer. However, the OP owns his own land and wants to build a house on it. He isn't buying a house....he is building a house.
I also think it is funny how someone mentions ethics that it would be unfair to discount a house just because the person didn't use a realtor and other people do. If they don't want to pay for a realtor, then they shouldn't have to. You don't get the benefits of using a realtor, but if that's your choice....
I think you should look at it like you are hiring a general contractor. Everything is negotiable.
PLease read and try to comprehend before you make such comments.
1) It's not THEIR MONEY. It's the builders money. I think it is hilarious that people think they should be able to tell a business person how to spend said business person's money.
2) No one said it would be unfair to discount the house if the person didn't use a realtor
3) Realtors are bound by a code of ethics. If it is illegal for them to do a kick back, they could and should lose their license.
AGAIN, they buyer isn't paying for teh realtor's services. It's NOT their money. What is so hard to understand about that????
Quote:
Originally Posted by ncsustash
I think it is hilarious that some people think that the OP should give money to a realtor because "Times are Tough". It is their money. I can understand that a buyers agent should get a commision on finding a house for a buyer. However, the OP owns his own land and awants to build a house on it. He isn't buying a house....he is building a house.
I also think it is funny how someone mentions ethics that it would be unfair to discount a house just because the person didn't use a realtor and other people do. If they don't want to pay for a realtor, then they shouldn't have to. You don't get the benefits of using a realtor, but if that's your choice....
I think you should look at it like you are hiring a general contractor. Everything is negotiable.
I also think it is funny how someone mentions ethics that it would be unfair to discount a house just because the person didn't use a realtor and other people do. If they don't want to pay for a realtor, then they shouldn't have to. You don't get the benefits of using a realtor, but if that's your choice....
Unfortunately, that's the problem. Technically a buyer should never be paying for a realtor. The realtor fees should always be coming from the seller. Therefore, if the builder discounted the house because the buyer did not use a realtor, in essence that would be saying that other buyers who use realtors are paying for their services (when it should be the seller paying for the realtor). That is why giving the buyer money for not using a realtor would be unethical.
Doubleblessings, how did the builder come up with the price initially? Is the home you are hoping to build a standard one that they build elsewhere? Or is it custom...designed specifically for you? That could make a difference. I think with a truly custom home you could have more leeway with the price depending on what specifications you choose. You could have more ways to change the house to save money while still meeting all of your needs. I know that a lot of production builders can make only so many changes (because they get certain materials from their own plants, so they can't change them significantly and would have more difficulty altering plans), while true custom builders have more options.
Good luck to you...
Last edited by ugaillini; 11-10-2009 at 11:40 AM..
Reason: clarification
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