Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Just out of curiosity, is it usual for a realtor to offer 50% of his or her commission to the buyer as a rebate at closing? I just googled the name of the subdivision I'm building in and a Realty company in the area had an ad that they give 50% of the commission to the buyer! My realtor never said anything of the sort and to be quite honest...had I found that company's ad before I found my realtor, I might have gone with someone who would give me cash back! Is that really allowed? Or is it just a sign of the times and that realtor is desperate for business?
Legal in some states, not in others. I don't know who you speak of so I comment directly on them, but typically their model is this: name goes down as your agent, you won't see them again until closing, if they show up for that even. They get paid for their name being on the contract and you do everything yourself. If you're Realtor is even half way decent, you're probably better off with him/her.
Just out of curiosity, is it usual for a realtor to offer 50% of his or her commission to the buyer as a rebate at closing? I just googled the name of the subdivision I'm building in and a Realty company in the area had an ad that they give 50% of the commission to the buyer! My realtor never said anything of the sort and to be quite honest...had I found that company's ad before I found my realtor, I might have gone with someone who would give me cash back! Is that really allowed? Or is it just a sign of the times and that realtor is desperate for business?
It's legal in some states. I'd say you get what you pay for. I know there are some companies who have this as an integral part of their business model. They offer a limited set of services, and let the buyer do most of the work themselves. In return for opening lockboxes & providing some forms, they take a portion of the buyer agent commission, rebating the remainder to the buyer who did all the work & took all the risk. For a buyer who truly knows what they are doing, and doesn't want or need the full range of service offered by other real estate agents (like myself) this can be a great way to run the transaction and save some money.
The problem comes when people THINK they know enough to manage the transaction themselves, and use a company like this in order to save the money, but don't actually know what they need to know. That can end up costing far more than the rebated commission.
Great idea, but not necessary for good agents, as when you see all that is required,and needed, probably get exactly what you earned, and then some. Some foks will do anything, to make a living!
My agent does this. She is from PayBack Realty in Youngstown. It's GREAT! When we close, I will get a nice check from them. And she has been a LOVELY realtor, not trying to get me to buy houses that I can't afford or houses that are not a good investment. In addition, the company has a 3% fee for listing your house to sell. However, if you also buy a house through them, the fee is only 1% (that's CRAZY when other companies are charging like 6%!). Further, if you want a cheaper route, they will help you do a FSBO for around $500 and post your house on the MLS and Realtor.com with a lock box and all. They believe that it's not fair for some realty companies to charge 6%, because if the house sells within a week, there's no way that 6% was even earned! So they believe in good service and volume!
I REALLLLLY recommend Claire from PayBack Realty. She's who we're using!
I AGREE WITH RAKIN. Had a Broker who was willing to do that, turn out we are not able to live in the home we purchase from her, because of serious problems with the home. SO BUYER BEWARE!!!!!!!!!
In addition, the company has a 3% fee for listing your house to sell. However, if you also buy a house through them, the fee is only 1% (that's CRAZY when other companies are charging like 6%!). Further, if you want a cheaper route, they will help you do a FSBO for around $500 and post your house on the MLS and Realtor.com with a lock box and all. They believe that it's not fair for some realty companies to charge 6%, because if the house sells within a week, there's no way that 6% was even earned! So they believe in good service and volume!
I think something is getting lost in the translation, here.
You will need to offer a competitive commission to a buyer's agent if you expect anyone to show your property. That is typically 1-3%, depending on the area.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
