Licensed Broker - Self Represent or Find Agent Willing to Credit Part of Commission?? (Houston: for sale)

[alannav]

I am a licensed Texas Real Estate Broker. We are relocating from Dallas to Houston and I had planned to self-represent in our new home search. We are looking to purchase a new inventory home from a builder in the Cinco Ranch or Bella Terra area.

We were trying to decide whether it was best to ask for a standard commission to be paid to me as the broker or just negotiate the sales price down in lieu of them paying the commission. We discussed with our mortgage broker and he advised against either scenario and instead suggested we find an agent to partner with us and credit some of the commission back. He reasoning was that he thinks we will get a crappier deal on the house because the builder will be less willing to with us on price or upgrades since we are representing as the broker.

The builders we are looking at are Lennar and Taylor Morrison in the $450 - $550 range.

So to recap, should we

1) take a traditional commission in the way of cash
2) ask to credit the commission towards closing costs
3) ask to reduce the sales price in lieu of the builder paying commission
4) use an agent familiar with the area and see if they are willing to credit us a portion of the commission in hopes of scoring a better overall deal on the house.

Thanks

[DSL_PWR]

I would opt for this "negotiate the sales price down in lieu of them paying the commission" because that is what I did. I think they will be more likely to work with you on the price since they are not paying out to someone else.

I am thinking there is something more in it for your mortgage guy if he suggested a certain agent.

[HoustonBornNRaised]

If they pay you commission, you bear the tax burden. Negotiate it off the price.

And what is it lately with the posts wanting Realtors to reduce their commission on here? Especially from a fellow Realtor?

[alannav]

Thanks. I have already done a good deal of the legwork and was just considering another rep as a formality. Trying to get a good deal that would require minimal work on their end and put a little $ in their pocket.

[huma281]

Originally Posted by HoustonBornNRaised

If they pay you commission, you bear the tax burden. Negotiate it off the price.

And what is it lately with the posts wanting Realtors to reduce their commission on here? Especially from a fellow Realtor?

If you're a realtor and you had to do zero work for 1% of a sale, I think that's pretty fair. I don't know of many other jobs that will pay you a few thousand for a few hours of work.

[marksmu]

Originally Posted by HoustonBornNRaised

If they pay you commission, you bear the tax burden. Negotiate it off the price.

And what is it lately with the posts wanting Realtors to reduce their commission on here? Especially from a fellow Realtor?

I agree, as an agent who represents himself quite frequently, I would negotiate off the price....I have had some folks (mostly other agents) refuse to do this though b/c it reduces their commission...You are also able to have an non-taxable event if it just shows as a credit against the sales price. I have had to do this twice because the other agent refused to reduce the price and lower their commission a few hundred dollars...this confuses title companies a little bit, but its possible, and stood up to my CPA's inspection.

As to asking another agent to reduce their commission - if I have already done ALL the work, and just want your name on the other end of the contract for convenience, you be darn sure I expect 2/3 reduction in commission. What is it with greedy realtors thinking they should get paid full price for any amount of work they do...Especially from another Realtor?

[HoustonBornNRaised]

I read the original post about five times, and nowhere in there does it say that the other (original poster) Realtor would be doing all of the work.

If my name is attached to a sale, I'm doing the work, and I'm pretty sure that's the way my broker would want it, considering his name is on the line. That's just the way I operate.

Original post:

I am a licensed Texas Real Estate Broker. We are relocating from Dallas to Houston and I had planned to self-represent in our new home search. We are looking to purchase a new inventory home from a builder in the Cinco Ranch or Bella Terra area.

We were trying to decide whether it was best to ask for a standard commission to be paid to me as the broker or just negotiate the sales price down in lieu of them paying the commission. We discussed with our mortgage broker and he advised against either scenario and instead suggested we find an agent to partner with us and credit some of the commission back. He reasoning was that he thinks we will get a crappier deal on the house because the builder will be less willing to with us on price or upgrades since we are representing as the broker.

The builders we are looking at are Lennar and Taylor Morrison in the $450 - $550 range.

So to recap, should we

1) take a traditional commission in the way of cash
2) ask to credit the commission towards closing costs
3) ask to reduce the sales price in lieu of the builder paying commission
4) use an agent familiar with the area and see if they are willing to credit us a portion of the commission in hopes of scoring a better overall deal on the house.

[marksmu]

It was not in the original post, it was in post #4, which was not available when you commented...I am just overly critical about agents that require full payment regardless of work involved. I think there is a way too much collusion, dishonest job-protection occurring in real-estate between agents.

[HoustonBornNRaised]

Originally Posted by marksmu

It was not in the original post, it was in post #4, which was not available when you commented...I am just overly critical about agents that require full payment regardless of work involved. I think there is a way too much collusion, dishonest job-protection occurring in real-estate between agents.

We'll have to agree to disagree on that one. I work my rear end off for my clients, and I earn every penny I make. What I get paid, is between myself, and either the buyer or seller. It has nothing whatsoever to do with the cooperating agent.

[DSL_PWR]

I don't use agents for buying or selling properties. Too much BS going on behind the scenes. Wasted money for a few hours total of paperwork.

I don't think with the internet, HAR, etc that agents are truly earning their money anymore.

I have bought properties off HAR and listed them on HAR for sale without an agent. I use my real estate attorney to handle the transaction at a fraction of the cost.


To the OP:

If I were you I would handle this transaction myself and reap the benefits.. good luck