Question about realtor behavior (incentive, 3%, mortgage, mortgage)
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jaindow and Greatday both said some very good info. I will also add that MOST buyers when even reading the write-ups are QUICKLY scanning it and are only picking up on the "KEY WORDS" like "hardwood floors", "bay windows", "tall ceilings", "large walk in closets", etc. The way a normal person reads things like MLS listings is not in the same way one would read a book. They are quickly looking at multiple listings and sorting out the ones that don't have the EXACT features they want. I'd recommend to the OP to take some time and just pull up the listings in your area. Sit and go thru ALL OF THEM!!! Don't skip them as your trying to pretend like your a serious buyer just like those looking at your home. After awhile see what REALLY stands out and I'd be willing to bet the adjectives to describe a feature are NOT even thought of or looked at. Do this for even other areas and do it for a couple of days. Pretty soon you will get to the point that the only listings you even click on have pictures available and more often than not you will look at the pics first, check the room and lot size(s) and a few other things and will totally SKIP the "puffery".
Another question, did you buy this house for an investment or did you live there at one time? If my Sellers live (or have lived) in the home, I ask them to write down what made them buy it in the first place. What features made it most attractive to them? I try to use at least some of those things in my descriptions without getting too flowery. What attracted them, may not necessarily attract another Buyer.
Anyway.......
Pretty soon you will get to the point that the only listings you even click on have pictures available and more often than not you will look at the pics first, check the room and lot size(s) and a few other things and will totally SKIP the "puffery".
Oh yeah, I have to totally agree to that.
This is my process at least:
Look at the ratio of bedrooms and bathrooms and if photos are available. One or no photos... then I move on!
Do a quick flip though photos
Look at when the house was originally built
Look at the estimated value of the home, along with when the home was last sold and the last purchase price (if this is listed).
Depending on #4, I will either move onto the next listing or continue on to see what features the house has and if it fits what I like BASED ON A SLOW, THOROUGH, CRITICAL EVALUATION OF THE PHOTOS
The last thing I may do is look at the written description, but that is usually only if I get past all 5 steps without giving up on the listing. And even then I am only scanning for items that I consider nice to have in a home that were not shown in any of the photos or a clarification of what I saw in the photos (i.e., where the countertops really granite, did that master include a regular or walk-in closet, is that a soaking tub or jet tub, was that ceramic tile, is that a separate laundry room that the washer and dryer is in).
Are realtors allowed to share their commision with a buyer? I friend of mine who is a realtor told me that it is (In Florida) not allowed to do so and there are penalties against a realtor doing so. Is this true? If so why can a realtor split the 6% with a buyers agent and not with a buyer or seller?
What can you do if a realtor has given you a paper to sign so a buyer knows that the realtor will disclose all he knows about the transaction and he doesn't, and that the realtor will act fair and honest, what if he doesn't, and you find out. Is there anything you can do?
Are realtors allowed to share their commision with a buyer? I friend of mine who is a realtor told me that it is (In Florida) not allowed to do so and there are penalties against a realtor doing so.
Most state laws do not allow an unlicensed person to receive any compensation for a real estate transaction. So, to specifically answer your question, no, an agent cannot share their commission with a buyer.
A listing agent can split the commission with a buyers agent because that agent is licensed.
The penalties for violation vary from state to state but losing ones license to practice real estate would not be an uncommon penalty
Most state laws do not allow an unlicensed person to receive any compensation for a real estate transaction. So, to specifically answer your question, no, an agent cannot share their commission with a buyer.
A listing agent can split the commission with a buyers agent because that agent is licensed.
The penalties for violation vary from state to state but losing ones license to practice real estate would not be an uncommon penalty
Thanks for your answer. What do you do when a realtor offers this and signs a paper to say he going to split it?
Take the paper to an attorney and get advice.
When a Seller Agency pays a Buyer Agent, it's actually to the Buyer Agent's brokerage, not the individual Agent. The Brokerage, pays the Buyer Agent.
Thanks for your answer. What do you do when a realtor offers this and signs a paper to say he going to split it?
You mean that the realtor is going to GIVE a seller/buyer a kickback? If so they are probably giving the person getting the kickback this "contract" to sign and then will EXPECT them to report it as an income on their taxes. Cause the realtor sure should not have to report the whole commission amount as an income if they gave part to someone else.
Most state laws do not allow an unlicensed person to receive any compensation for a real estate transaction. So, to specifically answer your question, no, an agent cannot share their commission with a buyer.
A listing agent can split the commission with a buyers agent because that agent is licensed.
The penalties for violation vary from state to state but losing ones license to practice real estate would not be an uncommon penalty
Comeon GD that is flat wrong in most states...including AZ I believe. A Buyers Agent can rebate to a buyer in the transaction if fully disclosed. I don't see any reason a seller's agent can't rebate to a buyer as well...you know something different?
Thanks for your answer. What do you do when a realtor offers this and signs a paper to say he going to split it?
Split it? With who?
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Are realtors allowed....?
