Realtor credit (selling a home, buying, living)

[ga_sam]

Originally Posted by Captain Bill

Also, ask your mortgage broker if they will allow you to receive a rebate off the HUD. They won't charge you for their answer.

If the lender doesn't allow any rebates from Broker, then what is the solution ?

[rjrcm]

Originally Posted by Captain Bill

...Also, ask your mortgage broker if they will allow you to receive a rebate off the HUD. They won't charge you for their answer.

Originally Posted by ga_sam

If the lender doesn't allow any rebates from Broker, then what is the solution ?

ga_sam, you missed the point. Most lender's will allow rebates in states where it's legal, but will have to be on the HUD. Do you have a concern about putting it on the HUD? If a particular lender denies the rebate for some reason, then it's simple - you don't get one for that transaction.

[azriverfan.]

Originally Posted by Zippyman

If you really want to save some money and learn a few things as well, you can get your own agent's license by jumping through a few hoops. The requirements are a bit of a hassle - 96? hours of class, a state test, fingerprinting, etc, but it is possible to "sell yourself" a house and get a check for the buyer's agent commission yourself. I went that route myself, not so much to save money, but so I would have access to listings as soon as they posted, and the ability to tour as many homes as I wanted to without having to beg for an agent's time. I was later able to negotiate deals for my family members & rebate most of my commissions to them, less expenses.

I agree. I'm in the process of doing this for the reasons you stated. I don't want to have to depend upon a realtor and pay them thousands in commissions for a job I can do myself. And like you said, it's not so much about the savings as it is the flexibility and ability to have access to listings as soon as they are posted. It also gives you an opportunity to help out family and friends

[ga_sam]

Originally Posted by rjrcm

ga_sam, you missed the point. Most lender's will allow rebates in states where it's legal, but will have to be on the HUD. Do you have a concern about putting it on the HUD? If a particular lender denies the rebate for some reason, then it's simple - you don't get one for that transaction.

I think, I understand the situation really well, there are some lenders which are not allowing this rebate in cases where Loan to value ratio is more than 95%, i.e. only 5% down conventional loan , does it makes sense now ?

[rjrcm]

Originally Posted by ga_sam

I think, I understand the situation really well, there are some lenders which are not allowing this rebate in cases where Loan to value ratio is more than 95%, i.e. only 5% down conventional loan , does it makes sense now ?

OK, then I think we entirely misunderstood the intent of your original question and followup. It seems you already knew the answer.

[ga_sam]

So it seems there is NO solution to this, correct ?
If lender doesn't allow, then realtor will not pass-on the rebate ?

[rjrcm]

Originally Posted by ga_sam

So it seems there is NO solution to this, correct ?
If lender doesn't allow, then realtor will not pass-on the rebate ?

Only if they want to be open to a mortgage fraud charge and lose their license . If you want more discussion I suggest you talk to an RE attorney.

[phoenix_new]

Interesting topic here, if the realtor rebate is on the HUD, then will that rebate be taxable to the buyer ?

[rjrcm]

Originally Posted by phoenix_new

Interesting topic here, if the realtor rebate is on the HUD, then will that rebate be taxable to the buyer ?

According to my broker, no. It's treated as a gift from the agent and taxable to the agent as part of the gross commission income.

[unit731]

Originally Posted by Zippyman

If you really want to save some money and learn a few things as well, you can get your own agent's license by jumping through a few hoops. The requirements are a bit of a hassle - 96? hours of class, a state test, fingerprinting, etc, but it is possible to "sell yourself" a house and get a check for the buyer's agent commission yourself.

I went that route myself, not so much to save money, but so I would have access to listings as soon as they posted, and the ability to tour as many homes as I wanted to without having to beg for an agent's time. I was later able to negotiate deals for my family members & rebate most of my commissions to them, less expenses.

FWIW, on many short-sales, the seller's bank won't allow an agent to collect a commission if they're the one buying the house - however it's often still worth it to have a license, just because it makes it much easier & more convenient to find deals, and having unrestricted / unfiltered MLS data available makes it easier to write offers and know your offer is based on truly comparable properties.

This is the best way.

I also took the Real Estate license course. I did not obtain the license as above - but above is the best way.

I just wanted to learn how things are done and what pitfalls one can run against. And this is information that is with you for a lifetime.

The last two homes that I owned and lived in I sold myself without any broker/salesperson. Both were listed with a RE agent. But in my contract I put the clause in to have ability to sell myself. The RE agents did work hard to sell my homes but I worked harder and got it done and one was in a real bad market/time. None of the RE agents wanted that clause in contract. But it is legal in the two states that I accomplished this. No commission paid.

It is a good idea to know the rules know the laws and to learn some of the tricks that a good agent uses.