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I'm reading lots of replies that no gift to the buyer's agent is necessary. Is this because the buyer indirectly pays part of the commission that the buyer's agent receives? (The seller pads the asking price in order to cover some of the commission that will be paid to the agents).
I'm also reading that buyer's agents are expected to give a gift to the buyer (welcome mat, bird feeder, champagne/wine bottle). Was it awkward when the buyer is given a gift, but has nothing to return back to the agent? (Except for a "thank you"). Kind of like one of those holiday occasions where one person unexpectedly gifts someone who did not get anything for the other.
the buyer's agent said she had a "little something" for me after the house closed.
Still waiting...................
but to answer your question, no, I do not think one buys the buyer's agent a gift - as others have pointed out, the commission received is ever-so-nice...................
I'm reading lots of replies that no gift to the buyer's agent is necessary. Is this because the buyer indirectly pays part of the commission that the buyer's agent receives? (The seller pads the asking price in order to cover some of the commission that will be paid to the agents).
I'm also reading that buyer's agents are expected to give a gift to the buyer (welcome mat, bird feeder, champagne/wine bottle). Was it awkward when the buyer is given a gift, but has nothing to return back to the agent? (Except for a "thank you"). Kind of like one of those holiday occasions where one person unexpectedly gifts someone who did not get anything for the other.
I have never received a gift from a buyer or seller beyond a thank you note. I give gifts to my buyers, usually I leave something for them in the house after the final walk through for them to find when they go to the house after closing. So, no awkward exchanges there.
OP, don't forget that a gift to an agent can be considered as income by the IRS over $50 (I think) and must be reported as such. The buyer's agent is compensated by their commission earned.
Do most buyers give a gift to their buyer's agents after closing?
No...but it might be a welcome trend. Actually, if anything, I'll give my buyers a small gift.
Quote:
Originally Posted by dontaskwhy
OP, don't forget that a gift to an agent can be considered as income by the IRS over $50 (I think) and must be reported as such.
I doubt that is the case--but I'm not certain. The commission paid is income. If it's truly a gift it is not earned or expected. (dontaskwhy - do you know of any special rules towards commissioned salespeople?...ah, the glorious tax code.) But...if the giver goes overboard (over 12K) they could be the ones subject to gift tax (I doubt that would ever happen!).
(dontaskwhy - do you know of any special rules towards commissioned salespeople?...ah, the glorious tax code
No, I cannot confirm tax rules/codes on the matter, just stating what I have heard in my Realtor education classes. I have never been in such a position where I would have to report gifts to the IRS, but I am certain there is a $$ threshold where it would need to be reported. The advice I has always been given is "consult your CPA".
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Actually, if anything, I'll give my buyers a small gift.
