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I'm getting ready to make an offer on a home in Austin, TX.
I don't have a buyer's agent. (Something I've avoided, since having our pockets picked, repeatedly, the first time we bought a home.)
I need to know the best strategy for getting as much of the commission rebated as possible.
As I see it, some of my options include:
1.) Telling the seller's agent we'll forgo representation if he'll reduce his commission to 4% - returning 2% to us.
2.) Going to one of the discount agents who advertise on the web - like this one: Cash Rebate - Flat Fee Listing - Austin Realtor - Mary Liu (http://www.localrealtypros.com/FAQ.html - broken link)
Unfortunately, while the large font says "2% rebate," the small print says "one."
I'd really like to get a 2% rebate on this deal, especially since it'd represent virtually no work whatsoever on the part of the agent who represented us.
I see your idea but unless your paying cash the lender (not your broker) but the one lending the money does not allow the buyer to walk away with additional cash in hand after closing.it is considered fraud and can mean loss of lic, and jail time for all parties envolved. We have seen this type of transaction really hammered on lately by the feds. I would not recommend that you try it. on the other hand why not ask the agent to contribute some of the commision towards your closing costs or may be they could negotiate the seller to pay your closing costs. Either way it needs to be documented and completely above board. I have paid for flooring,closing costs ect. but the buyer does not actually ever get the cash in their hands it is paid through escrow to the flooring company ect.or as a credit towards closing costs. hope this helps
I see your idea but unless your paying cash the lender (not your broker) but the one lending the money does not allow the buyer to walk away with additional cash in hand after closing.it is considered fraud and can mean loss of lic, and jail time for all parties envolved. We have seen this type of transaction really hammered on lately by the feds. I would not recommend that you try it. on the other hand why not ask the agent to contribute some of the commision towards your closing costs or may be they could negotiate the seller to pay your closing costs. Either way it needs to be documented and completely above board. I have paid for flooring,closing costs ect. but the buyer does not actually ever get the cash in their hands it is paid through escrow to the flooring company ect.or as a credit towards closing costs. hope this helps
It actually depends on the state. There is a company called BuySide Realty that will rebate 75% of the buyers commission back to you. This is cash in hand after closing (actually a check 2 weeks later). The company operates in 5 states including mine (GA). Also, it is not considered taxable income.
there is a company called Zip realty that will pay 20 percent of there commission. I have not used them because I would rather have experienced representation, which will save me more, but if you are very confident in your real estate knowledge, you might try them. Maybe you will find a real good one too.
I don't understand. Do I have to pay my agent for finding a house for me?I never did that before only when I sold a house.So if that is true I have to pay one agent for buying a house and another for selling my house. We bought this house three years ago and didn't have to pay our agent. Plus I have not signed a contract with my agent in NC.
Lorriem - no you won't have to pay an agent to find you a house, unless you choose to hire a buyers agent that requires you to do so. Very few buyers agents will do that, but there are a few. As you mentioned, the commission is customarily paid exclusively by the seller.
What the folks here are talking about is asking a buyers agent to take part of his commission (the co-broke) that he gets at closing from the sellers proceeds, and to rebate part of that to his client, the buyer.
Some agents/companies are doing that. Some of these agents/companies are of the "find it yourself/negotiate it yourself" type. You're pretty much on your own to negotiate the best deal and followup during the inspection/repair and escrow process. Based on the amount of work and level of representation and service these agents/companies offer, they should offer some sort of compensation to their customers.
Last edited by Gretchen B; 10-04-2007 at 01:26 PM..
Reason: typo
I don't understand. Do I have to pay my agent for finding a house for me?I never did that before only when I sold a house.So if that is true I have to pay one agent for buying a house and another for selling my house. We bought this house three years ago and didn't have to pay our agent. Plus I have not signed a contract with my agent in NC.
buyers still don't pay a commision . On rare occasions finds a for sale by owner . Where the seller doesn't want to pay a commision but the buyer wants representation that's when a buyer decides if they want to pay a buyers agent for their services.
Lorriem - no you won't have to pay an agent to find you a house, unless you choose to hire a buyers agent that requires you to do so. Very few buyers agents will do that, but there are a few. As you mentioned, the commission is customarily paid exclusively by the seller.
What the folks here are talking about is asking a buyers agent to take part of his commission (the co-broke) that he gets at closing from the sellers proceeds, and to rebate part of that to his client, the buyer.
Some agents/companies are doing that. Some of these agents/companies are of the "find it yourself/negotiate it yourself" type. You're pretty much on your own to negotiate the best deal and followup during the inspection/repair and escrow process. Based on the amount of work and level of representation and service these agents/companies offer, they should offer some sort of compensation to their customers.
Actually gretchen the op is not working with a buyer's agent and does not want to work with one. the op is looking for the seller's agent to "give back" part of the commission percentage that was negotiated and agreed upon between seller and seller's agent. the other option is using a discount broker with one of those funky offers.
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buyers dont pay a commision
