Getting paid/not paid, if buying a personal property

[Spottednikes]

I reduce sales price the amount of commission. My broker charges me a 650. Flat fee on my personal homes.

[Sand&Salt]

Originally Posted by Thinking-man

Hi,
as a realtor, how do you typically handle your own property purchases?
obviously, you want the 3% commission, but you'd probably prefer it be applied to the home's price as opposed to come out as 'income'.
What's the protocol?

thank you.

State: Virginia

A realtor bought my TX condo. She insisted on deducting that amount, so OK. Came out the same in the end.

[BoBromhal]

you buy a house today for 100K.

you take $3K commission: you're paying your marginal income tax rate today on that money.

you make the contract price 97K and take no commission. that 3K becomes (most likely) an untaxed capital gain when you sell in 5 years for 140K. You theoretically "get" the 3K, tax-free, when you sell.

[jdhall1]

Have it applied toward your closing costs with your lender and deal with paying your broker later.