Comission Rebate trend

[thebazman]

[quote=SD Realtor]I think you are missing the point. It is not about falling in or out of escrow. It is how much work do you want the person to do for you? Are you expecting the agent to run comps for you? If you want a history of the home, has it been sold or listed before, if so how much, how many times? Is the current seller in distress? How many homes in the neighborhood have sold? How much background grunt work do you expect the agent to do for you? Alot or none? Do you want opinions on repairs, on inspections, on roofs, on foundations?

Or do you want a guy to open a door with the keycard and let you in a home.

There is a big difference right?

***********

–deleted–
[/quote]

You make an excellent point on the other services a Realtor provides. For someone like myself who is familiar with all the interior features of a home and likes to look around, the “key card access” is what I crave when looking at listings because no pictures on the MLS can really substitute for how a property feels on the inside.
I don’t really need someone to explain to me “what this does” or other basic information.

What someone like myself tends to forget, however, are the external items of importance like neighborhood, seller’s motivation, and market movement. Also, HOA information and fees. A Realtor would know these things and how to research them.

Let’s not forget the time and expense of driving around a client to look at all the properties…obviously, it’s less expensive for fewer visits, so if clients do most of the running around and decide which ones they really NEED to look at up close, thereby limiting the number of required supervised Realtor visits, then a larger rebate would be a nice way of building a partnership and saying “thank you” to the client.

Interesting explanation at the end how the rebate process is fulfilled from the sale proceeds…I never knew how that was structured! Thanks for the information, SD R.

[SD Realtor]

Hi UR

Not a problem.

The way I execute the protocol is simple inasmuch as it is very much defined by a only a couple of parameters. The less the better.

Agent has to net $x no matter what.
Agent has to net y% of the sales price no matter what.
Agent will rebate z% of the commission that is offered to the client based on number of showings.

If the net received does not match $x or the percentage of the sales price does not match y%then simply deduct the difference from z.

Itemizing beyond that is possible but not anything I do. Providing the services is more important. Some clients utilize it and some are more self sufficient. Basically whenever an offer is submitted by a client the agent should take what is posted above and put it in an addendum and have it signed by the client with the RPA and other docs.

[SD Realtor]

Hi UR

Not a problem.

The way I execute the protocol is simple inasmuch as it is very much defined by a only a couple of parameters. The less the better.

Agent has to net $x no matter what.
Agent has to net y% of the sales price no matter what.
Agent will rebate z% of the commission that is offered to the client based on number of showings.

If the net received does not match $x or the percentage of the sales price does not match y%then simply deduct the difference from z.

Itemizing beyond that is possible but not anything I do. Providing the services is more important. Some clients utilize it and some are more self sufficient. Basically whenever an offer is submitted by a client the agent should take what is posted above and put it in an addendum and have it signed by the client with the RPA and other docs.

[SD Realtor]

Hi UR

Not a problem.

The way I execute the protocol is simple inasmuch as it is very much defined by a only a couple of parameters. The less the better.

Agent has to net $x no matter what.
Agent has to net y% of the sales price no matter what.
Agent will rebate z% of the commission that is offered to the client based on number of showings.

If the net received does not match $x or the percentage of the sales price does not match y%then simply deduct the difference from z.

Itemizing beyond that is possible but not anything I do. Providing the services is more important. Some clients utilize it and some are more self sufficient. Basically whenever an offer is submitted by a client the agent should take what is posted above and put it in an addendum and have it signed by the client with the RPA and other docs.

[SD Realtor]

Hi UR

Not a problem.

The way I execute the protocol is simple inasmuch as it is very much defined by a only a couple of parameters. The less the better.

Agent has to net $x no matter what.
Agent has to net y% of the sales price no matter what.
Agent will rebate z% of the commission that is offered to the client based on number of showings.

If the net received does not match $x or the percentage of the sales price does not match y%then simply deduct the difference from z.

Itemizing beyond that is possible but not anything I do. Providing the services is more important. Some clients utilize it and some are more self sufficient. Basically whenever an offer is submitted by a client the agent should take what is posted above and put it in an addendum and have it signed by the client with the RPA and other docs.

[SD Realtor]

Hi UR

Not a problem.

The way I execute the protocol is simple inasmuch as it is very much defined by a only a couple of parameters. The less the better.

Agent has to net $x no matter what.
Agent has to net y% of the sales price no matter what.
Agent will rebate z% of the commission that is offered to the client based on number of showings.

If the net received does not match $x or the percentage of the sales price does not match y%then simply deduct the difference from z.

Itemizing beyond that is possible but not anything I do. Providing the services is more important. Some clients utilize it and some are more self sufficient. Basically whenever an offer is submitted by a client the agent should take what is posted above and put it in an addendum and have it signed by the client with the RPA and other docs.

[NotCranky]

Dan and Adam,
Where are you getting the idea that the rebate has to be disclosed to the seller?I don’t mind doing it. It just seems like the rebate is a contract between the agent and the buyer only. I like the idea of putting it in with the offer BTW. That way the lender is notified ,if there is one.

How do you handle taxes on the rebate? Is it technically commission earned? Technically should the buyer pay taxes on the rebate?

[NotCranky]

Dan and Adam,
Where are you getting the idea that the rebate has to be disclosed to the seller?I don’t mind doing it. It just seems like the rebate is a contract between the agent and the buyer only. I like the idea of putting it in with the offer BTW. That way the lender is notified ,if there is one.

How do you handle taxes on the rebate? Is it technically commission earned? Technically should the buyer pay taxes on the rebate?

[NotCranky]

Dan and Adam,
Where are you getting the idea that the rebate has to be disclosed to the seller?I don’t mind doing it. It just seems like the rebate is a contract between the agent and the buyer only. I like the idea of putting it in with the offer BTW. That way the lender is notified ,if there is one.

How do you handle taxes on the rebate? Is it technically commission earned? Technically should the buyer pay taxes on the rebate?

[NotCranky]

Dan and Adam,
Where are you getting the idea that the rebate has to be disclosed to the seller?I don’t mind doing it. It just seems like the rebate is a contract between the agent and the buyer only. I like the idea of putting it in with the offer BTW. That way the lender is notified ,if there is one.

How do you handle taxes on the rebate? Is it technically commission earned? Technically should the buyer pay taxes on the rebate?

[NotCranky]

Dan and Adam,
Where are you getting the idea that the rebate has to be disclosed to the seller?I don’t mind doing it. It just seems like the rebate is a contract between the agent and the buyer only. I like the idea of putting it in with the offer BTW. That way the lender is notified ,if there is one.

How do you handle taxes on the rebate? Is it technically commission earned? Technically should the buyer pay taxes on the rebate?

[SD Realtor]

The rebate itself does not have to be disclosed to the seller.

Also I don’t recommend to put it in the offer at all. When I have the buyer sign the RPA and associated docs to be delivered to the listing agent, I have the addendum that specifies the rebate between myself and the buyer also signed at that time. It goes into the file that I carry on the transaction. In the offer you can specify the credit back to the buyer simply for NRCC and RCC. You also submit a CBC that reduces your commission. From the sellers standpoint it is a wash.

Because of the way I structure the rebate what does need authorization from the seller is that the seller will be crediting the buyer directly with X$.

You will note this is also a handy way for the buyer to maximize the return. The credit back is used for recurring/non recurring closing costs and is not any different then any other credit back from a seller to a buyer in a real estate transaction. At the same time you have specified in the CBC form to the listing agent a reduction in your commission. Thus you the agent/broker only receive the reduced commission. Your client receives the rebate, it is all done in a well documented manner.

This should be done at the very beginning of the transaction so the lender for your buyer is aware of a credit back to your buyer from the seller. Escrow is also made aware so the document trail has everything correct numbers wise.

[SD Realtor]

The rebate itself does not have to be disclosed to the seller.

Also I don’t recommend to put it in the offer at all. When I have the buyer sign the RPA and associated docs to be delivered to the listing agent, I have the addendum that specifies the rebate between myself and the buyer also signed at that time. It goes into the file that I carry on the transaction. In the offer you can specify the credit back to the buyer simply for NRCC and RCC. You also submit a CBC that reduces your commission. From the sellers standpoint it is a wash.

Because of the way I structure the rebate what does need authorization from the seller is that the seller will be crediting the buyer directly with X$.

You will note this is also a handy way for the buyer to maximize the return. The credit back is used for recurring/non recurring closing costs and is not any different then any other credit back from a seller to a buyer in a real estate transaction. At the same time you have specified in the CBC form to the listing agent a reduction in your commission. Thus you the agent/broker only receive the reduced commission. Your client receives the rebate, it is all done in a well documented manner.

This should be done at the very beginning of the transaction so the lender for your buyer is aware of a credit back to your buyer from the seller. Escrow is also made aware so the document trail has everything correct numbers wise.

[SD Realtor]

The rebate itself does not have to be disclosed to the seller.

Also I don’t recommend to put it in the offer at all. When I have the buyer sign the RPA and associated docs to be delivered to the listing agent, I have the addendum that specifies the rebate between myself and the buyer also signed at that time. It goes into the file that I carry on the transaction. In the offer you can specify the credit back to the buyer simply for NRCC and RCC. You also submit a CBC that reduces your commission. From the sellers standpoint it is a wash.

Because of the way I structure the rebate what does need authorization from the seller is that the seller will be crediting the buyer directly with X$.

You will note this is also a handy way for the buyer to maximize the return. The credit back is used for recurring/non recurring closing costs and is not any different then any other credit back from a seller to a buyer in a real estate transaction. At the same time you have specified in the CBC form to the listing agent a reduction in your commission. Thus you the agent/broker only receive the reduced commission. Your client receives the rebate, it is all done in a well documented manner.

This should be done at the very beginning of the transaction so the lender for your buyer is aware of a credit back to your buyer from the seller. Escrow is also made aware so the document trail has everything correct numbers wise.

[SD Realtor]

The rebate itself does not have to be disclosed to the seller.

Also I don’t recommend to put it in the offer at all. When I have the buyer sign the RPA and associated docs to be delivered to the listing agent, I have the addendum that specifies the rebate between myself and the buyer also signed at that time. It goes into the file that I carry on the transaction. In the offer you can specify the credit back to the buyer simply for NRCC and RCC. You also submit a CBC that reduces your commission. From the sellers standpoint it is a wash.

Because of the way I structure the rebate what does need authorization from the seller is that the seller will be crediting the buyer directly with X$.

You will note this is also a handy way for the buyer to maximize the return. The credit back is used for recurring/non recurring closing costs and is not any different then any other credit back from a seller to a buyer in a real estate transaction. At the same time you have specified in the CBC form to the listing agent a reduction in your commission. Thus you the agent/broker only receive the reduced commission. Your client receives the rebate, it is all done in a well documented manner.

This should be done at the very beginning of the transaction so the lender for your buyer is aware of a credit back to your buyer from the seller. Escrow is also made aware so the document trail has everything correct numbers wise.

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