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I am on the lookout for a good realtor in the San Francisco Bay Area, and willing to offer a buyer rebate. Although RedFin offers these rebates, I've found their agents to be overloaded and not willing to give me the time I need. On top of that, most realtors seem to get offended and take it as a personal affront when I ask about it. Any recommendations on how to good realtors willing to offer rebates, or tips on how to approach this would be appreciated.
Thanks.
Others have explained the reasons, I'll just state the reality: You can't have a good agent if you want to confiscate a portion of his or her salary. It's really that simple. Buy your house like an adult, with your own money. Asking for a handout from the agent's paycheck doesn't seem like a personal affront. It is a personal affront. Case closed.
I am on the lookout for a good realtor in the San Francisco Bay Area, and willing to offer a buyer rebate. Although RedFin offers these rebates, I've found their agents to be overloaded and not willing to give me the time I need. On top of that, most realtors seem to get offended and take it as a personal affront when I ask about it. Any recommendations on how to good realtors willing to offer rebates, or tips on how to approach this would be appreciated.
Thanks.
So you want a Realtor to PAY YOU for their service and for doing their job for you? You do realize we don't do this for fun, its our jobs?
Question...when you go to work, does your company take a portion of your salary back as a rebate?
You will end up with a very low volume agent who is desperate for clients or a newbie who will take anything just to get going. Good luck with that!
Can I ask a question? Or three. And they may derail this thread, but maybe not.
When did buyer's agents become common? I remember when we bought our house in 1987 they didn't exist, at least here. I mentioned around that time to an agent I knew that representing buyers might be an income stream and he acted as if I had committed a blasphemy.
Why on God's Green Earth would an agent, any agent, rebate part of his commission.
Following on that, I've seen here that some agents will cover part of the closing costs. Really? Why?
In AL, we became able to represent buyers as single agents in 1998 under the Real Estate Consumer Agency Disclosure Act. Before that, we were subagents of the seller.
Can I ask a question? Or three. And they may derail this thread, but maybe not.
Maybe. Maybe not...
Quote:
Originally Posted by North Beach Person
When did buyer's agents become common? I remember when we bought our house in 1987 they didn't exist, at least here. I mentioned around that time to an agent I knew that representing buyers might be an income stream and he acted as if I had committed a blasphemy.
Just about the day after you closed on your house. Into the 1990's.
Up to that point, buyers had no one on their side at all, legally. All "talent" was legally aligned to get the house sold for the seller. Yes, there was a great deal of resistance to buyers' agency from many firms that took a lot of listings and kept all commission in house.
Quote:
Originally Posted by North Beach Person
Why on God's Green Earth would an agent, any agent, rebate part of his commission.
Why not?
Never hire anyone in any industry who doesn't know their cost of doing business and the margin they need to succeed.
Unfortunately, and the consumer stands to get burned by either:
Too many agents can only calculate "their money" as a lump sum, and don't have any idea of their costs of doing business.
Too many agents can only market themselves based on their low fee and cannot support their clients fully with skill and character.
Commission amount is in no way relevant to character or skill, but when an agent starves to death, commonly the level of service diminishes proportionately to their health. Ergo, avoid any vendor who clearly does not have a grasp of the economics of their business.
Quote:
Originally Posted by North Beach Person
Following on that, I've seen here that some agents will cover part of the closing costs. Really? Why?
These were questions that have been percolating for awhile. I can answer real estate questions in a general manner if they concern zoning/code issues but the ones I asked here about the industry itself were bugging me.
So, ... it sounds like you are a potential Buyer who is attempting to find a Seller's Realtor (whom the seller is paying), to give you a kickback for buying a house ... in a Seller's market (??) -- (Are you hoping to raise your down payment via this scheme ... or something else?)
Even if you could find such a Realtor willing to compromise their client and ethics, what would make you think you could trust them? ... or them, you?
Wouldn't you accomplish the same thing by simply seeking a price reduction on the home purchase?
I think you are mis-characterizing the situation. It is the Listing Agent who is normally splitting their commission with a buyer's agent. A buyer's agent does not represent the Seller, so they are not compromising "their" client. There is also nothing unethical about rebating a portion of a commission, if an agent chooses to do so. A price reduction may result in the same net payment from a buyer--if a seller were to accept--but that may be less likely since the seller would net less (they still have to pay the full commission).
Why do agents who are adamant about not rebating any commission to a client readily agree to a referral agreement with another agent or company? There have been many posts here about the referral process and most agents seem OK with paying another agent or company a quarter or more of their commission for a client. The referring agent pockets a big chunk of the working agent's paycheck with no effort other than the referral. Doesn't seem very different in principle than rebating a client. I don't like giving up any of my hard-earned money but it seems contradictory to rail against rebates while defending referrals. Just my opinion. For the record, I detest the entire referral extortion game.
Because when you have a relationship with a referral partner, they are sending you MANY leads....for example, we are in a referral network for a well known financial advisor (who I can't name because we can't advertise his name), and get several qualified leads every month. We pay him a referral fee but its no where near what many charge, like relocation companies. Its different from rebating one buyer/seller who may or may not even refer to anyone else. If I gave buyers a portion of my commission, after already having to split with my broker, it wouldn't be worth it because I would literally be making peanuts, and we do have business expenses we have to cover on our own....its a JOB, remember that. We are not employees, we are typically independent contractors, so we have to cover expenses like office space, office supplies, travel expenses, gas (you should see how much I spend yearly on gas alone), license fees, education fees, MLS fees, computer/phone, etc. Its also my livelyhood and my very valuable time. Agents in our area that send out "coupons" for freebies and such are the ones that really are not doing much business, which should tell you something. If someone wants a "coupon" Realtor, go right ahead. I'll stick with my business model of high service and knowledge to entice clients.....I don't have to "buy" my clientele.
Its also illegal in AL to pay anyone that is not licensed anything of "value" in regards to a real estate transaction, but agents skirt around it and do it.
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Maybe. Maybe not...