First Time Home Buyer

[mroosman]

wHENEVER I buy a house with my agent, he gives me $500 cash as a bonus thank you. PM me if you need his number

[tuzzi]

wHENEVER I buy a house with my agent, he gives me $500 cash as a bonus thank you. PM me if you need his number

Does he disclose that fact to the seller of the home???

[me!]

Does he disclose that fact to the seller of the home???

Doesn't have to. I got a 1K back from my agent. this is a private agreement between the agent and you.

whether it comes out of the commision or the agents own pocket is the agent's business. as long as the seller pays the agent(s) his fair share then there's nothing more to add.

[15-20_God]

Doesn't have to. I got a 1K back from my agent. this is a private agreement between the agent and you.

whether it comes out of the commision or the agents own pocket is the agent's business. as long as the seller pays the agent(s) his fair share then there's nothing more to add.

isn't there something ethically wrong behind this back door payout? Are these payments known to the companies these agents represent?

[me!]

isn't there something ethically wrong behind this back door payout? Are these payments known to the companies these agents represent?

ethhics aside, I did get the money from my agent. It was off her commission, so the seller forked out no more than what he committed to in the first place.

Here, there are lots of agents who seek lower commissions other than stipulated in the real estate board Act. There are so many agents willing to cut commissions just to get the deal and not just the deal but to get another sale. I guess you could call them real estate w-hores.

[15-20_God]

whether it comes out of the commision or the agents own pocket is the agent's business.

not necessarily, the customer is technically a client of the real estate co. and the broker is acting as an agent between the 2.

ethhics aside, I did get the money from my agent. It was off her commission, so the seller forked out no more than what he committed to in the first place.

it can be construed by the seller that they could have forked out $1000 less to have the house sold.

[Chookman]

I know of a program through a friend's work that if they use a Remax agent, they get 1% of the agent's fees kicked back to them. It's through the Remax agency. So if a house has a 5% listing with 2.5% going to the selling agent and 2.5% going to the buying agent, then the customer gets 1% of 2.5%. Therefore, on a $200K home, the buying customer would get a $500 kickback from Remax.

I don't know how the seller would even know about this and I don't think they could tell the agency how to spend it's share of the profit from the sale.

Anyhow, any seller who decided not to sell their home to someone because he found out the buyer had worked out a back-end deal with his agent is going to have a house sitting on the market awhile. I think it's more common than not to have a deal worked out with your agent for a kickback AND I'd bet that some agents would not show that house knowing that the owner was a PITA.

I did all the legwork finding my place. I walked into the place and asked the selling agent to represent me and give me 1/2 of the fees back that the buying agent would have got from the deal. He gets his cut plus 1/2 of what the buying agent would have picked up. He disagreed. I went out and grabbed an agent who would give 1/3 back. Deal done. House purchased below what I originally was going to pay. Buying agent loses an extra 1.25% for not cutting a deal with me and seller sells house for lower than I would have offered with dual-agency. My agent does 1 hour of work and scores an easy 1.7% that he would have never had.

There are tons of agents out there that want your business. You, as the customer, have the power and there's nothing wrong with using that power to your benefit.

[me!]

it can be construed by the seller that they could have forked out $1000 less to have the house sold.

It can also be construed that the agent took 1k less in commission