Realtors that pay some of the commission to the buyer (Orlando: short sales, insurance) - Florida (FL) - City-Data Forum

mira4581 · 01-11-2010, 06:45 PM

Hi guys, I heard that in some Cities / States some realtors pay the buyer back some of the commision(1% - 1.5% ) after closing . Anyone knows of such a realtor in Orlando area. I am thinking about buying a townhouse and figured getting some money back would be great. Thanks

Broker Dave · 01-11-2010, 07:18 PM

We exist, can't say more due to forum rules.

Hope this helps,

bearz · 01-11-2010, 08:58 PM

Quote:

Originally Posted by mira4581

Hi guys, I heard that in some Cities / States some realtors pay the buyer back some of the commision(1% - 1.5% ) after closing . Anyone knows of such a realtor in Orlando area. I am thinking about buying a townhouse and figured getting some money back would be great. Thanks

Interesting... didnt know that...

Johnny Davis · 01-12-2010, 08:20 AM

They are definitely around. You just have to ask one!!

cfIfan · 01-13-2010, 10:05 AM

I would also say keep in mind what price range you are looking in aswell. Ive had clients who were looking for a home that was $50,000 on a 2.5% commission. After my split i would have recieved around $800 and I have to pay taxes on that. They wanted a 50% rebate and I told them that was not going to be possible. The max i would offer in the past was 25% and certainly not on a home at that price.

I have given a rebate in the past but it really depends on the price range and the commission being offered. On short sales i dont offer a rebate at all because the commission is variable and could go down to 1%, and after all I am a businessman. It doesnt make sense for me to run my business at a loss.

These are all things i would keep in mind.

AONE · 01-15-2010, 10:18 AM

Actually, a kickback on the commission would be on the HUD and the amount payable to the agent would be reduced as would what he is taxed on. I Do agree that with some of the low prices it is getting pretty petty to try to split what is so small in many cases. I'd be happy to if you want to split the appreciation with me after I find you a great deal. It is always up to the agent as to what they will negotiate with their clients. nothing is set in stone. Sometimes some of the benefits you get far exceed cutting into what an agent makes.

cfIfan · 01-15-2010, 11:29 AM

It should be noted the only time a rebate can be put directly on the HUD and done in this fashion is if the lender will allow it. I have come across a great many instances where they will not allow it. In those instances it has to be done outside of closing.

Quote:

Originally Posted by AONE

Actually, a kickback on the commission would be on the HUD and the amount payable to the agent would be reduced as would what he is taxed on. I Do agree that with some of the low prices it is getting pretty petty to try to split what is so small in many cases. I'd be happy to if you want to split the appreciation with me after I find you a great deal. It is always up to the agent as to what they will negotiate with their clients. nothing is set in stone. Sometimes some of the benefits you get far exceed cutting into what an agent makes.

dnc19694339 · 01-15-2010, 02:53 PM

Is this how some people shop for an agent? I have heard about shopping for a good deal on a house, but shopping for the least comission on the agent side?

Sounds very petty to me. I could see a reduced comission on the whole deal, but to have your agent make less than the other agent on the deal bothers me.

Im sure some agents are hungry enough to do this, but it just bugs me. I can see the agent driving you around to 25 houses and months of short sale offerings just to get a reduced comission?

I am not an agent either.

Broker Dave · 01-15-2010, 03:44 PM

I choose to give rebates to buyers and advertise it up front, everyone is hurting in this ecomony and this is my way of helping.

I also look at it as a way to help a buyer purchase a home, face it to come up with 3.5% for a loan downpayment (FHA) and another 3.5% to 4.5% for closing cost and .3% to .5% for insurance then there is the moving truck etc...

Every dollar helps,

AONE · 01-16-2010, 06:56 AM

Quote:

Originally Posted by cfIfan

It should be noted the only time a rebate can be put directly on the HUD and done in this fashion is if the lender will allow it. I have come across a great many instances where they will not allow it. In those instances it has to be done outside of closing.

You can not kick anything back to the owner of a short sale. If you do so it is loan fraud and a jailable offense but on the buyer side you absolutely can. If you are taking something under the table it is not an honest transaction. I have had lenders come to the agents to make the deal work. In fact, I recently closed a $400k short sale home both agents gave a concession to the buyer to make the deal work and of course it was on the HUD.

If you take it under the table yes indeed you are being taxed for it, but you are also likely doing something illegal, hence the need to cover it up. I suggest your license is not worth the risk nor are the penalties if caught... remember it is your brokers license at stake as well.

Gifts to clients...Great service, help them move, make them dinner on moving day, a Lowes gift card, a welcome mat for the front door, only $25 is deductible. You can spend more but keep it reasonable

I just found a $5000 error on a HUD for my client... now there is a gift!