Just an observation on one of our favorite topics, buyers getting rebates on commissions from realtors….
Different agents/agencies have different ways to give rebates or credits back to the buyer by sacrificing some of the commission they receive from the seller. I am not sure how ZIP does it. We have discussed in detail (in previous posts) about when it is done, the best way to do it is all above board, it must be specified in ammendments made to escrow. A common way to do it is for the selling agent (who is the agent representing the buyer) to inform the listing agent that he/she will take a reduced commission AND make a request that the seller credit the buyer the same amount that the commission was reduced. What is important here is how that credit is done. A common way to do it is to specify that the credit shall be for non-recurring closing costs. However, watch out because if the credit is BIG enough, it may be MORE then the non-recurring closing costs. In this case the lender will not let the buyer take the difference in cash home with him. A potential remedy would be to say that the credit would be for non recurring AND recurring closing costs. This would eat up more of the credit. If there is still more that needs to be eaten up then you can be specific to include repairs or remediation. Note that the lender will scrutinize this. In some cases, like if you specify repairs for something, the lender may require that the credit no go to you but be paid out directly to the contractor doing the work.
The point I am trying to make here is that if you are working with a realtor who will give you a credit from the commission make sure that everything is done properly and make sure early that the credit is eaten up by the terms specified in the escrow (or ammended) escrow instructions.
Please note, I am NOT advocating being sneaky or hiding this from your lender or anything of the sorts. I am absolutely saying it should be done in the right manner, above board, through escrow.
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