Seller Agent Commission Kickback

[Huckleberry]

Not sure if this has been discussed here already but thought I would throw it out there to get some feedback and ideas…

I am getting ready to start the SFR search and purchase process.

I would like to see if I can get a sellers agent commission cut/kickback, if I don’t bring a buyers agent into the transaction.

I.E., I would like 1.0 – 1.5% of the buyers agent commission, giving an additional 1.0 – 1.5% to the seller agent.

Here is the letter that I would likely submit to a sellers agent:

“Hello ???,

I am interested in this house!
[inserted URL to appropriate property]

I am wondering if you are flexible on representation though? I currently do not have a buyers agent and was wondering if you would be willing to represent me (as the buyers agent) as well as represent the seller of this home?

If so, would you be willing to give me 1.5% of the commission for upgrades, points, closing costs, etc? This would net you an additional 1% (considering no 2.5% split with a buyers agent) which you can use as you see fit…

Regards…”

Piggs Questions:

1. Is this legal for a sellers agent to do?

2. If not legal, how could it be made legal?

3. Will seller agents entertain this possibility?

4. How could this angle be made as enticing as possible (to seller agents) to get the outcome I am looking for?

5. How could the letter above be better crafted to get agents to “bite” on this offer?

6. Can proceeds be used for a down payment & closing costs, or would the kickback have to be used on the back-end of the transaction for say, upgrades?

Thanks for the help Piggs!

[jpinpb]

Let me know if it works. Seems w/the way the market is, going w/the LA gives you a better chance of getting the place b/c greed takes over and they can get the full commission. And if there are more than a few people contacting the LA directly, then price will dictate who gets the place. If it’s not a highly desirable property or a place that’s been on the market too long or not priced right, maybe they will negotiate the commission. It’s worth a try.

[jpinpb]

Let me know if it works. Seems w/the way the market is, going w/the LA gives you a better chance of getting the place b/c greed takes over and they can get the full commission. And if there are more than a few people contacting the LA directly, then price will dictate who gets the place. If it’s not a highly desirable property or a place that’s been on the market too long or not priced right, maybe they will negotiate the commission. It’s worth a try.

[jpinpb]

Let me know if it works. Seems w/the way the market is, going w/the LA gives you a better chance of getting the place b/c greed takes over and they can get the full commission. And if there are more than a few people contacting the LA directly, then price will dictate who gets the place. If it’s not a highly desirable property or a place that’s been on the market too long or not priced right, maybe they will negotiate the commission. It’s worth a try.

[jpinpb]

Let me know if it works. Seems w/the way the market is, going w/the LA gives you a better chance of getting the place b/c greed takes over and they can get the full commission. And if there are more than a few people contacting the LA directly, then price will dictate who gets the place. If it’s not a highly desirable property or a place that’s been on the market too long or not priced right, maybe they will negotiate the commission. It’s worth a try.

[jpinpb]

Let me know if it works. Seems w/the way the market is, going w/the LA gives you a better chance of getting the place b/c greed takes over and they can get the full commission. And if there are more than a few people contacting the LA directly, then price will dictate who gets the place. If it’s not a highly desirable property or a place that’s been on the market too long or not priced right, maybe they will negotiate the commission. It’s worth a try.

[SD Realtor]

Hi Huckleberry-

Here is a hint regarding terminology. Refer to the sellers agent as the listing agent. Theyt are listing the property and representing the sellers. In California, a seller may offer a cooperating broker a commission as well. The proper term for the cooperating agent is commonly referred to as the selling agent (yes that is the agent representing the buyer).

In California all commissions are negotiable. However understand that many conventional brokerages do not negotiate much on them. Your common large players will not do much. Remember that alot of players get a slice of the pie. The agent, the broker, the corporation.

So your tact if you want to approach the listing agent directly would be to ask for a portion of the coop commission, NOT the listing agents commission because that agent will be double ending the deal. Many brokerages will not let any parties be unrepresented, there is much to much of a liability.

So the answers to all of your questions are yes it is legal. Some agents may entertain the possibility and some may not. You can make it more enticing by doing it correctly and not asking for any of the commission on the listing side. Yes the proceeds can be used for closing costs as long as the lender okays it. Some may and some may not. You can also simply lower the purchase price by the amount.

Doing this in a letter will get you a 0% success rate. You will need to approach the agents in person at the open houses or call them. Your letters will go straight to the trash can. You can also just go with a Redfin to get a coop rebate or other places.

[SD Realtor]

Hi Huckleberry-

Here is a hint regarding terminology. Refer to the sellers agent as the listing agent. Theyt are listing the property and representing the sellers. In California, a seller may offer a cooperating broker a commission as well. The proper term for the cooperating agent is commonly referred to as the selling agent (yes that is the agent representing the buyer).

In California all commissions are negotiable. However understand that many conventional brokerages do not negotiate much on them. Your common large players will not do much. Remember that alot of players get a slice of the pie. The agent, the broker, the corporation.

So your tact if you want to approach the listing agent directly would be to ask for a portion of the coop commission, NOT the listing agents commission because that agent will be double ending the deal. Many brokerages will not let any parties be unrepresented, there is much to much of a liability.

So the answers to all of your questions are yes it is legal. Some agents may entertain the possibility and some may not. You can make it more enticing by doing it correctly and not asking for any of the commission on the listing side. Yes the proceeds can be used for closing costs as long as the lender okays it. Some may and some may not. You can also simply lower the purchase price by the amount.

Doing this in a letter will get you a 0% success rate. You will need to approach the agents in person at the open houses or call them. Your letters will go straight to the trash can. You can also just go with a Redfin to get a coop rebate or other places.

[SD Realtor]

Hi Huckleberry-

Here is a hint regarding terminology. Refer to the sellers agent as the listing agent. Theyt are listing the property and representing the sellers. In California, a seller may offer a cooperating broker a commission as well. The proper term for the cooperating agent is commonly referred to as the selling agent (yes that is the agent representing the buyer).

In California all commissions are negotiable. However understand that many conventional brokerages do not negotiate much on them. Your common large players will not do much. Remember that alot of players get a slice of the pie. The agent, the broker, the corporation.

So your tact if you want to approach the listing agent directly would be to ask for a portion of the coop commission, NOT the listing agents commission because that agent will be double ending the deal. Many brokerages will not let any parties be unrepresented, there is much to much of a liability.

So the answers to all of your questions are yes it is legal. Some agents may entertain the possibility and some may not. You can make it more enticing by doing it correctly and not asking for any of the commission on the listing side. Yes the proceeds can be used for closing costs as long as the lender okays it. Some may and some may not. You can also simply lower the purchase price by the amount.

Doing this in a letter will get you a 0% success rate. You will need to approach the agents in person at the open houses or call them. Your letters will go straight to the trash can. You can also just go with a Redfin to get a coop rebate or other places.

[SD Realtor]

Hi Huckleberry-

Here is a hint regarding terminology. Refer to the sellers agent as the listing agent. Theyt are listing the property and representing the sellers. In California, a seller may offer a cooperating broker a commission as well. The proper term for the cooperating agent is commonly referred to as the selling agent (yes that is the agent representing the buyer).

In California all commissions are negotiable. However understand that many conventional brokerages do not negotiate much on them. Your common large players will not do much. Remember that alot of players get a slice of the pie. The agent, the broker, the corporation.

So your tact if you want to approach the listing agent directly would be to ask for a portion of the coop commission, NOT the listing agents commission because that agent will be double ending the deal. Many brokerages will not let any parties be unrepresented, there is much to much of a liability.

So the answers to all of your questions are yes it is legal. Some agents may entertain the possibility and some may not. You can make it more enticing by doing it correctly and not asking for any of the commission on the listing side. Yes the proceeds can be used for closing costs as long as the lender okays it. Some may and some may not. You can also simply lower the purchase price by the amount.

Doing this in a letter will get you a 0% success rate. You will need to approach the agents in person at the open houses or call them. Your letters will go straight to the trash can. You can also just go with a Redfin to get a coop rebate or other places.

[SD Realtor]

Hi Huckleberry-

Here is a hint regarding terminology. Refer to the sellers agent as the listing agent. Theyt are listing the property and representing the sellers. In California, a seller may offer a cooperating broker a commission as well. The proper term for the cooperating agent is commonly referred to as the selling agent (yes that is the agent representing the buyer).

In California all commissions are negotiable. However understand that many conventional brokerages do not negotiate much on them. Your common large players will not do much. Remember that alot of players get a slice of the pie. The agent, the broker, the corporation.

So your tact if you want to approach the listing agent directly would be to ask for a portion of the coop commission, NOT the listing agents commission because that agent will be double ending the deal. Many brokerages will not let any parties be unrepresented, there is much to much of a liability.

So the answers to all of your questions are yes it is legal. Some agents may entertain the possibility and some may not. You can make it more enticing by doing it correctly and not asking for any of the commission on the listing side. Yes the proceeds can be used for closing costs as long as the lender okays it. Some may and some may not. You can also simply lower the purchase price by the amount.

Doing this in a letter will get you a 0% success rate. You will need to approach the agents in person at the open houses or call them. Your letters will go straight to the trash can. You can also just go with a Redfin to get a coop rebate or other places.

[Scarlett]

[quote=SD Realtor] Some may and some may not. You can also simply lower the purchase price by the amount.

Doing this in a letter will get you a 0% success rate. You will need to approach the agents in person at the open houses or call them. Your letters will go straight to the trash can. You can also just go with a Redfin to get a coop rebate or other places.[/quote]

Would a e-mail letter without asking for any kickback, just for dual representation, be thrown away? Just curious – why? I personally find it much more convenient to send e-mails than to try to get hold of somebody on the phone and I wish that more realtors will have also e-mail address listed and do business using that as well.

[Scarlett]

[quote=SD Realtor] Some may and some may not. You can also simply lower the purchase price by the amount.

Doing this in a letter will get you a 0% success rate. You will need to approach the agents in person at the open houses or call them. Your letters will go straight to the trash can. You can also just go with a Redfin to get a coop rebate or other places.[/quote]

Would a e-mail letter without asking for any kickback, just for dual representation, be thrown away? Just curious – why? I personally find it much more convenient to send e-mails than to try to get hold of somebody on the phone and I wish that more realtors will have also e-mail address listed and do business using that as well.

[Scarlett]

[quote=SD Realtor] Some may and some may not. You can also simply lower the purchase price by the amount.

Doing this in a letter will get you a 0% success rate. You will need to approach the agents in person at the open houses or call them. Your letters will go straight to the trash can. You can also just go with a Redfin to get a coop rebate or other places.[/quote]

Would a e-mail letter without asking for any kickback, just for dual representation, be thrown away? Just curious – why? I personally find it much more convenient to send e-mails than to try to get hold of somebody on the phone and I wish that more realtors will have also e-mail address listed and do business using that as well.

[Scarlett]

[quote=SD Realtor] Some may and some may not. You can also simply lower the purchase price by the amount.

Doing this in a letter will get you a 0% success rate. You will need to approach the agents in person at the open houses or call them. Your letters will go straight to the trash can. You can also just go with a Redfin to get a coop rebate or other places.[/quote]

Would a e-mail letter without asking for any kickback, just for dual representation, be thrown away? Just curious – why? I personally find it much more convenient to send e-mails than to try to get hold of somebody on the phone and I wish that more realtors will have also e-mail address listed and do business using that as well.

[Author]

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