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6% commission, split with buyers agent, split again with me = 1.5% of purchase price.
Unless you're dealing directly with the broker, and not an agent of the brokerage, that probably doesn't work.
If your 6% estimate is right, the total commission in the $300,000 transaction will be $18,000.
Assuming it's split down the middle, half of that to the Listing Brokerage, half to the Selling Brokerage (also known as the buyers broker.) So your Brokers half is $9,000.
Further assuming that the agent is on a 50/50 split, your AGENT'S commission is $4,500.
The half he offered back to you works out to be $2,250.
Unless you're dealing directly with the broker, and not an agent of the brokerage, that probably doesn't work.
If your 6% estimate is right, the total commission in the $300,000 transaction will be $18,000.
Assuming it's split down the middle, half of that to the Listing Brokerage, half to the Selling Brokerage (also known as the buyers broker.) So your Brokers half is $9,000.
Further assuming that the agent is on a 50/50 split, your AGENT'S commission is $4,500.
The half he offered back to you works out to be $2,250.
Why would you assume his split is 50%/50%? and all agreements are between broker and client, what the agents split is doesn't mean anything to the client.
Unless you're dealing directly with the broker, and not an agent of the brokerage, that probably doesn't work.
If your 6% estimate is right, the total commission in the $300,000 transaction will be $18,000.
Assuming it's split down the middle, half of that to the Listing Brokerage, half to the Selling Brokerage (also known as the buyers broker.) So your Brokers half is $9,000.
Further assuming that the agent is on a 50/50 split, your AGENT'S commission is $4,500.
The half he offered back to you works out to be $2,250.
Unless you're dealing directly with the broker, and not an agent of the brokerage, that probably doesn't work.
If your 6% estimate is right, the total commission in the $300,000 transaction will be $18,000.
Assuming it's split down the middle, half of that to the Listing Brokerage, half to the Selling Brokerage (also known as the buyers broker.) So your Brokers half is $9,000.
Further assuming that the agent is on a 50/50 split, your AGENT'S commission is $4,500.
The half he offered back to you works out to be $2,250.
Rebate agents offer rebates based on the commission offered by the seller. A 50% rebate of the buyer's commission on a $300K home means $4500 back to the buyer at closing (assuming typical 3% commission). It has nothing to do with their brokership, "take home" commission, or other relationships the agent has. The OP is correct.
OP: I would get rid of the $3K seller subsidy. All it does is increase your loan by $3K and if your rebate alone will cover closing costs so you don't need the subsidy.
The second option is to not have any of the rebate applied at closing and instead ask to receive a check after closing. Redfin offers this option, but you will have to ask your agent if they will do this. This is a "roundabout" way of applying the rebate towards your down payment. It sounds like this might be what your agent is doing - writing a check personally instead of having the rebate listed on your HUD-1. Double check on how the rebate is applied.
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