Hello FW buddies, Is it OK to ask for a 1.5% commission rebate when buying a home through a realtor? The realtor I am working with said no but will pay around $300 of closing costs. The buyer realtor gets a 3% on the selling price. I know all friends in DC area who have received 1.5% rebate on an old home and 2% to 2.5% on a new home. Not sure how to convince my realtor to give us a portion of the commission. If you can share your experience that would be awesome. Thank you.
fatwallet21 said: Hello FW buddies, Is it OK to ask for a 1.5% commission rebate when buying a home through a realtor? The realtor I am working with said no but will pay around $300 of closing costs. The buyer realtor gets a 3% on the selling price. I know all friends in DC area who have received 1.5% rebate on an old home and 2% to 2.5% on a new home. Not sure how to convince my realtor to give us a portion of the commission. If you can share your experience that would be awesome. Thank you.Get hooked up with your friend's realtor, instead of the one you have now?
fatwallet21 said: Hello FW buddies, Is it OK to ask for a 1.5% commission rebate when buying a home through a realtor? The realtor I am working with said no but will pay around $300 of closing costs. The buyer realtor gets a 3% on the selling price. I know all friends in DC area who have received 1.5% rebate on an old home and 2% to 2.5% on a new home. Not sure how to convince my realtor to give us a portion of the commission. If you can share your experience that would be awesome. Thank you.
This sounds like something that should have been talked about prior to signing a contract with the realtor. And if you haven't signed up yet, then it's time to talk to your friend's realtor.
Have you signed an exclusive buyer agency agreement with the realtor? It spells out the terms of commission. If not, you can always ask, but asking for the realtor to cut their paycheck in half is going to have most of them leaving you hanging.
Joecd66
Thrifty Member
posted: May. 5, 2011 @ 8:30a
If you want to get 1.5% back automatically (minimum commission apply), check out Redfin.com, but they are only available in selected markets. I guess the practice more depending on the competition.
Thantoz
Member
posted: May. 5, 2011 @ 9:03a
If Zip Realty is still around by you, they'll give you a rebate also.
Unless you already signed an exclusive contract with your realtor, tell him you'll go with the other company unless he improves his rates.
No, I haven't signed any contract with the realtor. But he is the one who showed us the home so I don't think I can go with any other realtor. Correct?
fatwallet21 said: No, I haven't signed any contract with the realtor. But he is the one who showed us the home so I don't think I can go with any other realtor. Correct?
The only thing that obligates you to go with a specific realtor is if you sign an agreement to do so. Most realtors will ask that you sign one once they've shown you houses a few times, but at the latest when you submit an offer. However, you can make an offer on any house with or without a realtor representing you.
There's a thing called procuring cause where the realtor that showed you the house is entitled to the commission. Most disputes with realtors involve procuring cause issues. The problem the OP will run into is the listing agent. The listing agent will not want to get into a procuring cause case because at that point you could have two agents looking for the same commission. The second agent could get paid and then the first agent sues for procuring cause after the closing so as to not kill the deal. I think it would be tricky even finding a second agent to present the offer once you tell them you've already seen the house with another agent. There's a couple of other ways around it, but it's tricky and a pain to deal with.
Redfin has a minimum commission which is 6k, I think ZipRealty does up to 25% but they also have minimums depending on the market. I wonder what the purchase price would have to be in order to get 2 to 2.5% of the commission on a new home and what percentage of the commission that represented.
There is a personal finance article on WSJ titled "going homehunting alone". It reports fewer people are using buyers' agents and fewer people consider agents as their first source of information.
My understanding is that you're only legally bound to your realtor IF you've signed a buyer's agreement. If you haven't, you certainly have the right to contact the listing agent yourself or employ a buyer's agent of your choice.
Good Luck,
Kanosh
Senior Member - 1K
posted: May. 8, 2011 @ 2:08a
henry33 said: There's a thing called procuring cause where the realtor that showed you the house is entitled to the commission. Most disputes with realtors involve procuring cause issues. The problem the OP will run into is the listing agent. The listing agent will not want to get into a procuring cause case because at that point you could have two agents looking for the same commission. The second agent could get paid and then the first agent sues for procuring cause after the closing so as to not kill the deal. I think it would be tricky even finding a second agent to present the offer once you tell them you've already seen the house with another agent. There's a couple of other ways around it, but it's tricky and a pain to deal with.
Redfin has a minimum commission which is 6k, I think ZipRealty does up to 25% but they also have minimums depending on the market. I wonder what the purchase price would have to be in order to get 2 to 2.5% of the commission on a new home and what percentage of the commission that represented.
This advice is 100% on target. While you indeed have the "right" to sign up with any real estate agent you wish, the FIRST agent who shows you a home has the right to expect a commission. That's why open houses always have you sign in. That's also why rebating agents like Redfin make it clear that when viewing a house you must make it clear that you are represented by an agent, lest the selling agent think you are a walk in and that the commission will not be shared.
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