Builder's incentives going to realtor and not buyer (sale, real estate) - Houston - Texas (TX) - City-Data Forum

PFEdoc · 08-16-2009, 11:55 PM

I recently was upset because a builder who would not discount me an amount that I explained would go right back to the builder in options gave my realtor a referral incentive that was larger than what I wanted off....more upset because I referred the agent an not vice versa....seems very ridiculous since the realtor did nothing but give his name and we did all negotiations. Why would the builder not give more to the person spending the money....

I am wondering how people feel about extra incentives given to the realtor instead of more to

the buyer from builders. Crazy but I heard some realtors are getting TV, trips, gift cards, etc....

predatorprey · 08-17-2009, 06:02 AM

Why didn't you talk to the realtor to give you a large kick back for giving them free money?

caldvn · 08-17-2009, 06:09 AM

You need to provide some more details, there's a lot of variables. How much discount were you asking, what the realtor was getting, what discounts were already given.

TV = less than 2k, trips same, gift cards? Of course the buyer is paying for all of it. Nothing crazy about it, it's the builders way of telling the realtor, "find me more business." Better yet, since you know about the realtor incentive, ask realtor for it...

jas1999 · 08-17-2009, 08:06 AM

You should have had the realtor do thier job and do the negotiating for you. Our agent got us a discount that was 4 times what he got from our builder. I'm guessing if we walked in off the street we would not have gotten that.

Any incentives that an agent gets, comes out of the builders advertising budget. This is an expense they had already planned for. So, anything the agent gets should not impact the price you are paying for the home.

AlexTx · 08-17-2009, 08:19 AM

If the builder was advertising a Realtor bonus on the house, they can't exactly take that away from the realtor and give it to you. It sounds like they were offering an extra bonus on the house you picked out, and as a buyer, you wouldn't know this. But a realtor would have.

Builders give extra incentives to realtors all the time as a way to get a realtor to steer their clients to them. You just so happened to bring the realtor to them, but they still have to honor the bonus.

Yes, realtors get extra money, gift cards, even trips if they sell enough of the builder's homes. Sellers of a resale house can also offer a realtor bonus.

It would be nice if your realtor asked the builder to give the bonus to you in a form of a discount instead of taking the bonus themselves. But they don't have to.

You also might have been able to get more money off the house if you didn't use a realtor at all, but realtors do serve a purpose. They can help you negotiation a lower price, show comps to back up your offer, help you through the whole process, go on your buyer walks with you, and help you through the closing process. So use your realtor for all these things since you are using one.

PFEdoc · 08-17-2009, 09:05 AM

Exactly! You guys are all right in your responses. Bottom line is bottom line and I only got a realtor involved because I did get some kickback but nothing like what they got for my referral to the builder...I offered the builder to not use a realtor at the beginning but didn't even know that realtors actually got a huge referral fee on top of their commission. Just a little crazy since I'm the buying and the money has to come from somewhere and now teh builder is out $10k more than I asked for originally w/ no one else involved.
Oh well! I may walk now since I am more offended!!!

Topaz · 08-17-2009, 09:36 PM

I would be irritated, too.

jpm42 · 08-18-2009, 11:00 AM

Quote:

Originally Posted by PFEdoc

Why would the builder not give more to the person spending the money....

Why should the builder give you a discount? They want to maximize their profits, and you were obviously willing to pay full price. If you're not willing to walk away from a bad deal, you don't have any leverage. It may not be "fair", but it is how the world works.

westres1 · 08-18-2009, 08:21 PM

It is like an advertising budget. It doesnt have anything to do with your house. These are across the board btsa's given to Realtors who bring in business. Your Realtor was just lucky and I am sure she is very thankful to have an easy sale and client in this enviroment. The money doesnt come from your money it comes from the builders incentive/advertising budget. I dont understand why people do not want Realtors to feed and clothe their children when it isnt even their money paying them! Give them a break and if you like the house buy it.

Topaz · 08-18-2009, 08:37 PM

Quote:

Originally Posted by westres1

The money doesnt come from your money it comes from the builders incentive/advertising budget. I dont understand why people do not want Realtors to feed and clothe their children when it isnt even their money paying them!

But it IS our money. The cost for Realtors is built into most real estate transactions. I want Realtors to be able to feed and clothe their children, just not by being a Realtor. I want the entire system to be different.