[quote=SD Realtor]e if you have not signed a specific representation agreement I see no problem with either situation you have posed. It would be…. polite for you to at least inform the agent you are working with that you are working with someone else. If they inquire why you can let them know. Any buyers agent can go ahead and reduce the commission they receive and rebate it back to you (yet most of thier brokers will not allow that).
It is all negotiable. I never understand why more buyers do not demand that. [/quote]
Regarding working with a different agent simultaneously:
I would consider it appropriate to mention that you may or may not use them on other offers you submit.
Regarding switching agents on a particular property:
It is legal to do that but unless you explicitly broke off relations with your previous agent, i would consider it unethical. If I found out that my buyer was in escrow on a property that I had represented her on (nice hanging preposition there), then I would make an ethics complaint with the other brokers involved in the transaction.
Regarding rebating commission:
I have not ever heard of a broker not allowing an agent to rebate their own commission back. If its my money, I can do with it what I like. I did have a situation where I covered the cost of a home inspection upon closing. However, the escrow firm wanted a new addendum signed around to process it as a rebate (that is not always the case). In the interest of simplicity, I just cut a check after I got my check.
Also, SD realtor is wrong (and this is an opinion) about getting rebates back. As a buyer you really become a losing proposition when you start asking for a piece of their paycheck to be kicked back to you. Take as an example this situation: A new Prudential Cal agent starts with a 35% broker split (last I check which was a couple years ago). He keeps 35 cents of every dollar he generates. He meets a client whom he goes out with 3 times for a total of 9hrs and 60 miles. Because he is an agent he drives a 4 door car with mid range mileage. The buyer is 1st timer and does not want to spend more than 200k. Considering a buyer side gross commission is likely about 3%, that means the most he can home to make off of this is 2100 bucks over the course of several weeks. Assuming an offer is accepted, that means that means 1-2 months of work making sure the escrow moves along. Figure 100 hours of work total between calls by the nervous buyer, explaining forms, attending inspections, requesting repairs, etc. In addition there are Realtor dues that total almost 1000 per year. Assuming this account for about 5% of his business that year, that means this transaction costs him $50 in dues. Finally, there are the other business expenses. He needs, at a minimum a laptop and a cell phone with a liberal calling plan. Figure another $50 in personal expenses for this transaction (that is likely a conservative estimate). So for 2100 dollars, the agent spends about 109 hours, about 100 dollars, and drives 60 miles.
This example does not hold if the buyer finds all the properties herself, or the agent never does any of those (fairly standard) things mentioned above, or if the purchase price is significantly higher, or if the split in the agents office is better. However, my point remains that having a cheap, easy, and financially lucrative transaction is an exception rather than a rule. Yesterday I spent 11 hours with clients. I don’t get paid unless they actually close a purchase. I will really re-think how much effort I put into helping them if they start asking me to kick back money.
Again my opinion.
