Changing a Realtor

[oldtrader]

Maybe the buyer gets 3.5% of the commission. If he buys $ 200k, the agent gets 3%, so $6,000, and then he's willing to give 3.5% of that $6000 which is a mere $210.

No you are wrong. Lets say the Builder is paying a 5% commission on the total sale. For a $200,000 home that is $10,000. The OP has found some unethical agent, willing to take only 1.5% for himself, or $3,000, and give the buyer back $7,000.

It shows the honesty of the OP. What would he think, if he worked all week on a job paying $1,000 per week, and his boss wanted to cut him to say $200 for the weeks work. He would want the whole thing.

Agents that are willing to kick back 3.5% is a very unethical and an agent that no one can trust. He just wants to sit there, let others do the work, and get the gravy.

If the office would get $10,000 commission, it would be split probably 50% to the office and to the same to the agent. The average number of homes a typical successful agent sells is about 6. Out of that, they have a lot of expenses. So the typical agent would take in $30,000 if the homes sell for $200,000 before expenses. The majority 80% of new agents will not last 2 years in the business, and many will never even make one sale. So you can see, Real Estate agents do not make a fortune on the average.

The best in the business do very well, but most do not. I entered the business in 1972 and stayed in it till I retired. I did not sell homes for personal residences. I was a commercial/investment/1031 exchange broker, and sold 2 small high end apartment buildings my first week in the business, and the second week working, exchanged a 16 unit quality apartment house for a large irrigated farm in an area of high priced farms. I would never have sold homes, as I could not afford the cut in income.

The agent is not going to get rich on the home sale, and he is the registered agent that will get the commission if the OP buys it. If someone else writes the contract, the registered agent will get paid, or there will be one heck of a law suite and the OP will win.

[Bill Keegan]

Originally Posted by ransom32

It is funny when someone sarcastic based on assumptions. First of all, I showed the realtor the community we want to be in, I went to the builder initially to find out about the property. I knew about the community more than he did....I thought it should be other way around.

I contacted the realtor to help me negotiate a better deal and help me in closing. He only showed me 1 house to compare and all he did was to email me average cost in that neighborhood.

Luckily I have not signed anything with anyone. Just so you know, I heard about the rebate offering for the 1st time on the radio when I was driving from the airport. If it's on the radio, I am assuming all the realtors know about it.. I guess you have a lot to catch up with regards to what's happening around. I guess it's the Texas law as I have not heard anything like this in NJ.

But that's not what you said when you were asked why you wanted to change agents. You said,

I want to out of this agent as I can get cash back which I can use for upgrades

You didn't complain that he hadn't done what you needed, you never mentioned that you lost faith in his abilities, you didn't suggest that he was a poor agent. You said you'd like to dump him because you wanted the money and he didn't want to give it to you.
Feel free to complain about the agent in other ways now that you've seen some of the responses, but we all saw your motivation right there in post 4.

[Silverfall]

Builders offer 5% in Texas? I think I need to move.

[Rakin]

Originally Posted by Silverfall

Builders offer 5% in Texas? I think I need to move.

No they don't. OP is mistaken on their facts.

[SmartMoney]

SIX WORDS: You get what you pay for.

I work with many of the large builders and there is a reason for "registering a buyer" and this shines a bright light on why. Suck it up or move onto another builder. And, as hard as it is for any professional to ignore your "we don't think you are worth your commission" vote of confidence, don't be surprised if your agent now feels slighted should you stay with that builder.

I am all about the buyer not getting ripped off, but when I witness the mess people make chasing the dollar and forgetting about the integrity of their actions, I am not motivated to help them unravel their mess.

There is a reason some agents have to rebate their commission - it's the only way they get clients over those that know what they are doing. I once saw someone kick one of the most experienced negotiators in my area (probably state, she owned most of the KW offices in my area) to the curb for a rebate from a credit union agent referral program. Over 25 years experience for a 2% rebate. Well, 6 months later when it was discovered the rebate agent just took orders from the builder and never challenged some HOA docs and cost the buyer a couple thousand at closing for a capital contribution (that was to be named later) AND it also bumped my brother's monthly payment by almost $200 when they had to increase the monthly HOA fee. (He also paid too much for the home, because no one checked the resales closely in the new neighborhood to see numerous for closures were on the market).

Six little words.