Real Estate Question (Raleigh: sale, lender, buying a home)

[new home buyer]

Hi! I am in the process of buying a new home from a production builder in the Raleigh area. This builder pays a percentage as commision to my real estate agent.

Anyway, I have heard from some folks that have purchased homes this way that my agent can share some of that commission money with me. It can somehow be written into the HUD. I have mentioned this to my agent, but she was unaware of any such thing.

Does anyone have any experience with this? I am curious to know, as we could use all financial help possible with closing costs.

[jln69]

Yes this is true. The buyers agent usually receives a commission in the transaction. Remember that the commission is paid to the firm and not the agent. This amount does not represent what the agent receives. The agent can make a contribution on the HUD-1/Settlement Statement at closing if he/she wants. This is done on occassion.

I know I am sounding like a Real Estate Agent now but don't expect them to embrace your idea. Remember that this is their paycheck. This is how they make a living just like you. In most cases, they have earned this. How would you feel is someone asked you to give up a portion of your pay.

Why not ask the builder or the builder's lender to pay a portion of your closing costs. This is done in alot of cases. Hopefully your agent was able to negotiate a good sale price if this was an inventory home or hopefully they were able to negotiatge some upgrades at no additional cost if it were a presale.

Good luck with your purchase.

[new home buyer]

Thank you for the response. I am glad you sound like a real estate agent - I needed the assistance of one. As you mentioned, this is my realtor's paycheck - however she has been pretty much useless as my realtor. She represented me on the sale of my home - but didnt even show up at the closing. She didnt even put on the open house - cancelled at the last minute so I had to do it. Ultimately, it was my husband's conversation with the buyer that sold my house.

As for the new home, we have asked many times for her assistance, and she always cancels at the last minute. It is quite a shame, as she is a friend of mine as well and I gave her the opportunity to represent me, and she has failed numerous times.

Anyway, sorry for the griping. I really just wanted to say thanks for the response.

[jln69]

Your welcome. Sorry to hear that you are having such a difficult time. We don't all work that way. Don't want to sound negative against another agent but there should have been someone else in the office that could have done the open house for your agent since she wasn't able to. In our office, we all try to suport and help one another out when needed. It is difficult sometimes to do business with friends and family especially when situations like these arrive. Again, best of luck with your new home.

[sacredgrooves]

heck, my own mother wouldnt give up her commission to me when I bought lol. Most realtors earn that money though. If you feel your friend has not performed their job, then try to work something out. good luck!

[leighbhe]

Just to add a note, yes, realtors can give a rebate at closing, and yes it does have to appear on the HUD, which means it has to be approved by your lender. That is the big one, some lenders will not approve the rebate, most will, but some will not.

I do give a rebate to clients for many of the reasons you have stated, that you and your husband have put a lot of work into selling your house and buying a home. That doesn't mean I don't do work, but it just means you too are very involved in the process.

Now, that is just my philosophy, and my take on it, I do not want to get blasted by realtors who do not do this, that is their decision so don't blast me for mine.

Leigh