Kick back from Buyer’s Agent

[drboom]

Our agent split his commission down the middle with us and picked up the home warrantee as a gift.

Why? We didn’t waste his time. He showed us one house and he wrote one offer for us … which obviously turned into a closed sale.

Short sale annoyances aside, it was easy money for him and he did a great job getting us through a short escrow with minimal fuss. Everyone won this time.

[SD Realtor]

uneven again that is up to you.

Rebates can be a little trickier with a new home. Most people think that an agent earns a coop commission for a new home. In reality what most developers do is award a referral to an agent who registers a buyer who buys a new home. However with that referral fee are tighter restrictions that the referral that goes to the agent must not be distributed to the buyer. So generally the rebate back to the buyer on a new home is done outside or after escrow. Expect to be 1099’d on that income. However it is still pretty nice money right? Are you gonna turn down 10k for instance if I tell you I have to 1099 you at the end of the year? Heck no.

Anyways you may ask what good is the agent if I already have a new home picked out… well that is a good question. Perhaps not much. However if you go to the sales office and say give me the new home for the sales price minus the referral fee it is quite unlikely they will. I guess maybe it depends on the development. If you have already have picked out a home, that is, if you already registered with the builder it is a moot point. Even if you bring an agent with you the sales office will go no sir, and turn the agent away.

[SD Realtor]

uneven again that is up to you.

Rebates can be a little trickier with a new home. Most people think that an agent earns a coop commission for a new home. In reality what most developers do is award a referral to an agent who registers a buyer who buys a new home. However with that referral fee are tighter restrictions that the referral that goes to the agent must not be distributed to the buyer. So generally the rebate back to the buyer on a new home is done outside or after escrow. Expect to be 1099’d on that income. However it is still pretty nice money right? Are you gonna turn down 10k for instance if I tell you I have to 1099 you at the end of the year? Heck no.

Anyways you may ask what good is the agent if I already have a new home picked out… well that is a good question. Perhaps not much. However if you go to the sales office and say give me the new home for the sales price minus the referral fee it is quite unlikely they will. I guess maybe it depends on the development. If you have already have picked out a home, that is, if you already registered with the builder it is a moot point. Even if you bring an agent with you the sales office will go no sir, and turn the agent away.

[SD Realtor]

uneven again that is up to you.

Rebates can be a little trickier with a new home. Most people think that an agent earns a coop commission for a new home. In reality what most developers do is award a referral to an agent who registers a buyer who buys a new home. However with that referral fee are tighter restrictions that the referral that goes to the agent must not be distributed to the buyer. So generally the rebate back to the buyer on a new home is done outside or after escrow. Expect to be 1099’d on that income. However it is still pretty nice money right? Are you gonna turn down 10k for instance if I tell you I have to 1099 you at the end of the year? Heck no.

Anyways you may ask what good is the agent if I already have a new home picked out… well that is a good question. Perhaps not much. However if you go to the sales office and say give me the new home for the sales price minus the referral fee it is quite unlikely they will. I guess maybe it depends on the development. If you have already have picked out a home, that is, if you already registered with the builder it is a moot point. Even if you bring an agent with you the sales office will go no sir, and turn the agent away.

[SD Realtor]

uneven again that is up to you.

Rebates can be a little trickier with a new home. Most people think that an agent earns a coop commission for a new home. In reality what most developers do is award a referral to an agent who registers a buyer who buys a new home. However with that referral fee are tighter restrictions that the referral that goes to the agent must not be distributed to the buyer. So generally the rebate back to the buyer on a new home is done outside or after escrow. Expect to be 1099’d on that income. However it is still pretty nice money right? Are you gonna turn down 10k for instance if I tell you I have to 1099 you at the end of the year? Heck no.

Anyways you may ask what good is the agent if I already have a new home picked out… well that is a good question. Perhaps not much. However if you go to the sales office and say give me the new home for the sales price minus the referral fee it is quite unlikely they will. I guess maybe it depends on the development. If you have already have picked out a home, that is, if you already registered with the builder it is a moot point. Even if you bring an agent with you the sales office will go no sir, and turn the agent away.

[SD Realtor]

uneven again that is up to you.

Rebates can be a little trickier with a new home. Most people think that an agent earns a coop commission for a new home. In reality what most developers do is award a referral to an agent who registers a buyer who buys a new home. However with that referral fee are tighter restrictions that the referral that goes to the agent must not be distributed to the buyer. So generally the rebate back to the buyer on a new home is done outside or after escrow. Expect to be 1099’d on that income. However it is still pretty nice money right? Are you gonna turn down 10k for instance if I tell you I have to 1099 you at the end of the year? Heck no.

Anyways you may ask what good is the agent if I already have a new home picked out… well that is a good question. Perhaps not much. However if you go to the sales office and say give me the new home for the sales price minus the referral fee it is quite unlikely they will. I guess maybe it depends on the development. If you have already have picked out a home, that is, if you already registered with the builder it is a moot point. Even if you bring an agent with you the sales office will go no sir, and turn the agent away.

[temeculaguy]

The word kickback has such a negative connotation. There are different scenarios and people have different levels of sophistication and different needs. As a buyer, it almost always benefits you to use a realtor, especially one on his own turf, look for one that can tell you the square footage or model layouts off the top of their head and look for a good negotiator, not just a pretty one (my personal weakness).

For short sales you “need” one. For organic sales, you “should have” one. For an REO that you found yourself in your hood that you are familiar with, with multiple bids, they can be a handicap because their commission comes off your net offer, they can slow you down and about all they can do for you is the negotiation which doesn’t really exist with banks, they aren’t going to fix it or change it, they just look at the net offer. I spent a few thousand hours educating myself about r/e, I found the house myself, but in the end I still had a buddy in the biz proofread my stuff and take a look at my deal, I’m still paying him off in alcohol. I didn’t get a kickback, I used the listing agent, had them write a fraction of the normal buyers comission and it sweetened my net offer. I did try to get one of the piggy realtors to handle my deal but the three that I trust and have had a drink with (a prerequisite for my business, sd, SD and urban) all work too far away from me, so I went it alone, but i don’t reccomend it for most scenarios or most people.

redfin and other kickback realtors will not allow you to tour or make an offer on a short sale, they are just too much work. http://www.redfin.com/buy-a-home/short-sales

[temeculaguy]

The word kickback has such a negative connotation. There are different scenarios and people have different levels of sophistication and different needs. As a buyer, it almost always benefits you to use a realtor, especially one on his own turf, look for one that can tell you the square footage or model layouts off the top of their head and look for a good negotiator, not just a pretty one (my personal weakness).

For short sales you “need” one. For organic sales, you “should have” one. For an REO that you found yourself in your hood that you are familiar with, with multiple bids, they can be a handicap because their commission comes off your net offer, they can slow you down and about all they can do for you is the negotiation which doesn’t really exist with banks, they aren’t going to fix it or change it, they just look at the net offer. I spent a few thousand hours educating myself about r/e, I found the house myself, but in the end I still had a buddy in the biz proofread my stuff and take a look at my deal, I’m still paying him off in alcohol. I didn’t get a kickback, I used the listing agent, had them write a fraction of the normal buyers comission and it sweetened my net offer. I did try to get one of the piggy realtors to handle my deal but the three that I trust and have had a drink with (a prerequisite for my business, sd, SD and urban) all work too far away from me, so I went it alone, but i don’t reccomend it for most scenarios or most people.

redfin and other kickback realtors will not allow you to tour or make an offer on a short sale, they are just too much work. http://www.redfin.com/buy-a-home/short-sales

[temeculaguy]

The word kickback has such a negative connotation. There are different scenarios and people have different levels of sophistication and different needs. As a buyer, it almost always benefits you to use a realtor, especially one on his own turf, look for one that can tell you the square footage or model layouts off the top of their head and look for a good negotiator, not just a pretty one (my personal weakness).

For short sales you “need” one. For organic sales, you “should have” one. For an REO that you found yourself in your hood that you are familiar with, with multiple bids, they can be a handicap because their commission comes off your net offer, they can slow you down and about all they can do for you is the negotiation which doesn’t really exist with banks, they aren’t going to fix it or change it, they just look at the net offer. I spent a few thousand hours educating myself about r/e, I found the house myself, but in the end I still had a buddy in the biz proofread my stuff and take a look at my deal, I’m still paying him off in alcohol. I didn’t get a kickback, I used the listing agent, had them write a fraction of the normal buyers comission and it sweetened my net offer. I did try to get one of the piggy realtors to handle my deal but the three that I trust and have had a drink with (a prerequisite for my business, sd, SD and urban) all work too far away from me, so I went it alone, but i don’t reccomend it for most scenarios or most people.

redfin and other kickback realtors will not allow you to tour or make an offer on a short sale, they are just too much work. http://www.redfin.com/buy-a-home/short-sales

[temeculaguy]

The word kickback has such a negative connotation. There are different scenarios and people have different levels of sophistication and different needs. As a buyer, it almost always benefits you to use a realtor, especially one on his own turf, look for one that can tell you the square footage or model layouts off the top of their head and look for a good negotiator, not just a pretty one (my personal weakness).

For short sales you “need” one. For organic sales, you “should have” one. For an REO that you found yourself in your hood that you are familiar with, with multiple bids, they can be a handicap because their commission comes off your net offer, they can slow you down and about all they can do for you is the negotiation which doesn’t really exist with banks, they aren’t going to fix it or change it, they just look at the net offer. I spent a few thousand hours educating myself about r/e, I found the house myself, but in the end I still had a buddy in the biz proofread my stuff and take a look at my deal, I’m still paying him off in alcohol. I didn’t get a kickback, I used the listing agent, had them write a fraction of the normal buyers comission and it sweetened my net offer. I did try to get one of the piggy realtors to handle my deal but the three that I trust and have had a drink with (a prerequisite for my business, sd, SD and urban) all work too far away from me, so I went it alone, but i don’t reccomend it for most scenarios or most people.

redfin and other kickback realtors will not allow you to tour or make an offer on a short sale, they are just too much work. http://www.redfin.com/buy-a-home/short-sales

[temeculaguy]

The word kickback has such a negative connotation. There are different scenarios and people have different levels of sophistication and different needs. As a buyer, it almost always benefits you to use a realtor, especially one on his own turf, look for one that can tell you the square footage or model layouts off the top of their head and look for a good negotiator, not just a pretty one (my personal weakness).

For short sales you “need” one. For organic sales, you “should have” one. For an REO that you found yourself in your hood that you are familiar with, with multiple bids, they can be a handicap because their commission comes off your net offer, they can slow you down and about all they can do for you is the negotiation which doesn’t really exist with banks, they aren’t going to fix it or change it, they just look at the net offer. I spent a few thousand hours educating myself about r/e, I found the house myself, but in the end I still had a buddy in the biz proofread my stuff and take a look at my deal, I’m still paying him off in alcohol. I didn’t get a kickback, I used the listing agent, had them write a fraction of the normal buyers comission and it sweetened my net offer. I did try to get one of the piggy realtors to handle my deal but the three that I trust and have had a drink with (a prerequisite for my business, sd, SD and urban) all work too far away from me, so I went it alone, but i don’t reccomend it for most scenarios or most people.

redfin and other kickback realtors will not allow you to tour or make an offer on a short sale, they are just too much work. http://www.redfin.com/buy-a-home/short-sales

[bsrsharma]

Buyer’s agents are very helpful and essential for a first time buyer. For others, in a buyers market, if you feel the need for an agent, you are not ready to buy and you should do more homework. (I believe an agent, like any other human, puts his interests above a clients interest). Also, things work better, especially when buying REO, when you use the same agent (or an agent’s close friend) as the seller’s agent after you have done your homework . The empirical formula for getting really good REO deals seems to be Cash + listing agent with incentive!

[bsrsharma]

Buyer’s agents are very helpful and essential for a first time buyer. For others, in a buyers market, if you feel the need for an agent, you are not ready to buy and you should do more homework. (I believe an agent, like any other human, puts his interests above a clients interest). Also, things work better, especially when buying REO, when you use the same agent (or an agent’s close friend) as the seller’s agent after you have done your homework . The empirical formula for getting really good REO deals seems to be Cash + listing agent with incentive!

[bsrsharma]

Buyer’s agents are very helpful and essential for a first time buyer. For others, in a buyers market, if you feel the need for an agent, you are not ready to buy and you should do more homework. (I believe an agent, like any other human, puts his interests above a clients interest). Also, things work better, especially when buying REO, when you use the same agent (or an agent’s close friend) as the seller’s agent after you have done your homework . The empirical formula for getting really good REO deals seems to be Cash + listing agent with incentive!

[bsrsharma]

Buyer’s agents are very helpful and essential for a first time buyer. For others, in a buyers market, if you feel the need for an agent, you are not ready to buy and you should do more homework. (I believe an agent, like any other human, puts his interests above a clients interest). Also, things work better, especially when buying REO, when you use the same agent (or an agent’s close friend) as the seller’s agent after you have done your homework . The empirical formula for getting really good REO deals seems to be Cash + listing agent with incentive!

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