Comission Rebate trend

[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.

[zzz]

I have tried working with a few different agents in looking for a home, and invariably I’ve found that I’m actually more knowledgeable about the comps, the neighborhood, etc because I am pretty diligent in my research and the agent doesn’t specialize in the neighborhood I’m looking in….Im looking across a number of neighborhoods. Clearly I need to find a better agent. In the meantime, there are a few properties specifically that I want to see. How does it work if I just want to contact the listing agent so I can gain access to the home? If ultimately I want to put in an offer, do I ask for the credit that would have been paid to a selling agent that I can use towards closing costs?

[zzz]

I have tried working with a few different agents in looking for a home, and invariably I’ve found that I’m actually more knowledgeable about the comps, the neighborhood, etc because I am pretty diligent in my research and the agent doesn’t specialize in the neighborhood I’m looking in….Im looking across a number of neighborhoods. Clearly I need to find a better agent. In the meantime, there are a few properties specifically that I want to see. How does it work if I just want to contact the listing agent so I can gain access to the home? If ultimately I want to put in an offer, do I ask for the credit that would have been paid to a selling agent that I can use towards closing costs?

[zzz]

I have tried working with a few different agents in looking for a home, and invariably I’ve found that I’m actually more knowledgeable about the comps, the neighborhood, etc because I am pretty diligent in my research and the agent doesn’t specialize in the neighborhood I’m looking in….Im looking across a number of neighborhoods. Clearly I need to find a better agent. In the meantime, there are a few properties specifically that I want to see. How does it work if I just want to contact the listing agent so I can gain access to the home? If ultimately I want to put in an offer, do I ask for the credit that would have been paid to a selling agent that I can use towards closing costs?

[zzz]

I have tried working with a few different agents in looking for a home, and invariably I’ve found that I’m actually more knowledgeable about the comps, the neighborhood, etc because I am pretty diligent in my research and the agent doesn’t specialize in the neighborhood I’m looking in….Im looking across a number of neighborhoods. Clearly I need to find a better agent. In the meantime, there are a few properties specifically that I want to see. How does it work if I just want to contact the listing agent so I can gain access to the home? If ultimately I want to put in an offer, do I ask for the credit that would have been paid to a selling agent that I can use towards closing costs?

[zzz]

I have tried working with a few different agents in looking for a home, and invariably I’ve found that I’m actually more knowledgeable about the comps, the neighborhood, etc because I am pretty diligent in my research and the agent doesn’t specialize in the neighborhood I’m looking in….Im looking across a number of neighborhoods. Clearly I need to find a better agent. In the meantime, there are a few properties specifically that I want to see. How does it work if I just want to contact the listing agent so I can gain access to the home? If ultimately I want to put in an offer, do I ask for the credit that would have been paid to a selling agent that I can use towards closing costs?

[NotCranky]

Thanks Adam. That is what with the CBC. My commissions rebated to buyer have been verbal up unitil the offer is underway.This is because I almost always work with people I have known on a social basis for years. I have put it in the RPA or a counter or and addendum with no problems.

ZZZ That is a little bit of a can of worms. You might lose leverage asking for a rebate after the listing agent has been the “procurring cause”. You can go to open houses and simply state that you are working with an agent, but if you have the listing agent show you the place by appointment it could get tricky. It might work depending on the agent and the office they work from.

[NotCranky]

Thanks Adam. That is what with the CBC. My commissions rebated to buyer have been verbal up unitil the offer is underway.This is because I almost always work with people I have known on a social basis for years. I have put it in the RPA or a counter or and addendum with no problems.

ZZZ That is a little bit of a can of worms. You might lose leverage asking for a rebate after the listing agent has been the “procurring cause”. You can go to open houses and simply state that you are working with an agent, but if you have the listing agent show you the place by appointment it could get tricky. It might work depending on the agent and the office they work from.

[NotCranky]

Thanks Adam. That is what with the CBC. My commissions rebated to buyer have been verbal up unitil the offer is underway.This is because I almost always work with people I have known on a social basis for years. I have put it in the RPA or a counter or and addendum with no problems.

ZZZ That is a little bit of a can of worms. You might lose leverage asking for a rebate after the listing agent has been the “procurring cause”. You can go to open houses and simply state that you are working with an agent, but if you have the listing agent show you the place by appointment it could get tricky. It might work depending on the agent and the office they work from.

[NotCranky]

Thanks Adam. That is what with the CBC. My commissions rebated to buyer have been verbal up unitil the offer is underway.This is because I almost always work with people I have known on a social basis for years. I have put it in the RPA or a counter or and addendum with no problems.

ZZZ That is a little bit of a can of worms. You might lose leverage asking for a rebate after the listing agent has been the “procurring cause”. You can go to open houses and simply state that you are working with an agent, but if you have the listing agent show you the place by appointment it could get tricky. It might work depending on the agent and the office they work from.

[NotCranky]

Thanks Adam. That is what with the CBC. My commissions rebated to buyer have been verbal up unitil the offer is underway.This is because I almost always work with people I have known on a social basis for years. I have put it in the RPA or a counter or and addendum with no problems.

ZZZ That is a little bit of a can of worms. You might lose leverage asking for a rebate after the listing agent has been the “procurring cause”. You can go to open houses and simply state that you are working with an agent, but if you have the listing agent show you the place by appointment it could get tricky. It might work depending on the agent and the office they work from.

[SD Realtor]

zzz

“How does it work if I just want to contact the listing agent so I can gain access to the home?”

The listing agent contact should be available a few ways. If you drive by then the sign should get you to the LA.

If you view the home on Realtor.com then the listing agent or brokerage he/she works for should be on the listing.

“If ultimately I want to put in an offer, do I ask for the credit that would have been paid to a selling agent that I can use towards closing costs?”

There is not any “credit” that would have been issued to the selling agent. There is a coop commission. Use that terminology and the LA will know you are more knowledgeable then the average bear. You can ask him to divulge what the coop commission would have been had you been represented by your own buyers agent and maybe they tell you and maybe they do not. You may choose not ask and simply have him write you an offer and ask him to build a credit from the seller to you the buyer to be credited at close of escrow for recurring and non recurring closing costs. If you want to assume that the coop commission was 2.5% then ask for that much blindly.

There are many ways to play it. You can have him represent you in which he will be a dual agent or you can tell him you want to be unrepresented. In some cases brokers will not sell a home to a buyer who is not represented for fear of lawsuits.

Also word of warning. Lenders today are very leery when they see credits. The “general” rule of thumb is that credits for recurring and non recurring closing costs should not exceed 3% of the sales price.

[SD Realtor]

zzz

“How does it work if I just want to contact the listing agent so I can gain access to the home?”

The listing agent contact should be available a few ways. If you drive by then the sign should get you to the LA.

If you view the home on Realtor.com then the listing agent or brokerage he/she works for should be on the listing.

“If ultimately I want to put in an offer, do I ask for the credit that would have been paid to a selling agent that I can use towards closing costs?”

There is not any “credit” that would have been issued to the selling agent. There is a coop commission. Use that terminology and the LA will know you are more knowledgeable then the average bear. You can ask him to divulge what the coop commission would have been had you been represented by your own buyers agent and maybe they tell you and maybe they do not. You may choose not ask and simply have him write you an offer and ask him to build a credit from the seller to you the buyer to be credited at close of escrow for recurring and non recurring closing costs. If you want to assume that the coop commission was 2.5% then ask for that much blindly.

There are many ways to play it. You can have him represent you in which he will be a dual agent or you can tell him you want to be unrepresented. In some cases brokers will not sell a home to a buyer who is not represented for fear of lawsuits.

Also word of warning. Lenders today are very leery when they see credits. The “general” rule of thumb is that credits for recurring and non recurring closing costs should not exceed 3% of the sales price.

[SD Realtor]

zzz

“How does it work if I just want to contact the listing agent so I can gain access to the home?”

The listing agent contact should be available a few ways. If you drive by then the sign should get you to the LA.

If you view the home on Realtor.com then the listing agent or brokerage he/she works for should be on the listing.

“If ultimately I want to put in an offer, do I ask for the credit that would have been paid to a selling agent that I can use towards closing costs?”

There is not any “credit” that would have been issued to the selling agent. There is a coop commission. Use that terminology and the LA will know you are more knowledgeable then the average bear. You can ask him to divulge what the coop commission would have been had you been represented by your own buyers agent and maybe they tell you and maybe they do not. You may choose not ask and simply have him write you an offer and ask him to build a credit from the seller to you the buyer to be credited at close of escrow for recurring and non recurring closing costs. If you want to assume that the coop commission was 2.5% then ask for that much blindly.

There are many ways to play it. You can have him represent you in which he will be a dual agent or you can tell him you want to be unrepresented. In some cases brokers will not sell a home to a buyer who is not represented for fear of lawsuits.

Also word of warning. Lenders today are very leery when they see credits. The “general” rule of thumb is that credits for recurring and non recurring closing costs should not exceed 3% of the sales price.

[SD Realtor]

zzz

“How does it work if I just want to contact the listing agent so I can gain access to the home?”

The listing agent contact should be available a few ways. If you drive by then the sign should get you to the LA.

If you view the home on Realtor.com then the listing agent or brokerage he/she works for should be on the listing.

“If ultimately I want to put in an offer, do I ask for the credit that would have been paid to a selling agent that I can use towards closing costs?”

There is not any “credit” that would have been issued to the selling agent. There is a coop commission. Use that terminology and the LA will know you are more knowledgeable then the average bear. You can ask him to divulge what the coop commission would have been had you been represented by your own buyers agent and maybe they tell you and maybe they do not. You may choose not ask and simply have him write you an offer and ask him to build a credit from the seller to you the buyer to be credited at close of escrow for recurring and non recurring closing costs. If you want to assume that the coop commission was 2.5% then ask for that much blindly.

There are many ways to play it. You can have him represent you in which he will be a dual agent or you can tell him you want to be unrepresented. In some cases brokers will not sell a home to a buyer who is not represented for fear of lawsuits.

Also word of warning. Lenders today are very leery when they see credits. The “general” rule of thumb is that credits for recurring and non recurring closing costs should not exceed 3% of the sales price.

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