Realtors® Are Not A Protected Class

I don't understand.  If the buyer isn't a real estate agent wouldn't a real estate agent representing the buyer get a comission?

No I can't work for free and my buyers and sellers understand that if they want my help with a transaction where the comission isn't paid by the seller then they have to apy me.

Gab, I have also seen this and I can see this if the listing agent wants to buy the property. He or she has been their info provider and I can see a conflict of interest. The buyer should be able to be anyone, I see lawyers snapping up properties as part of their investment portfolio and in our state they can still collect the commission because they don't hold a RE license. What a fine line in the sand! Congrats *!
Does anything make sense anymore,

Paul

I don't have to respond to the part about the banks not paying yada yada yada. I will respond to the issue of not showing a listing because of the commission paid. I can't speak for where you are, here in CT once we sign a buyer broker agreement with our client we are saying that we will find them a home, the best home possible, on and on. No where does it say that I will find you a home based on the commission. It does say that if the seller is not going to pay, the buyer is responsible to pay. End of story.

I get burned when I hear agents who won't show a property based on the commission offered.

That is why you get a partner that is not a relative in your fix and flip opportunities.  You start a LLC in Montana (best privacy laws) with both of you as managing partners.  He offers and buys, you get commission.   

Many of the banks make some strange rules about what and who can buy their properties.  Then there are some who do not have any exclusions. 

If your client selects a house the does not offer a commission to the buyer's agent, as a Realtor you should show the home; however, inform your client that the seller is not paying the commission on this house and they, the buyer, are responsible for the commission at closing.  That helps put a roof over your head and you keep your commitment to proving the best possible service to your clients.

If I found out a Realtor did not show me a home because of a reduced commission, I would fire him or her and never refer anyone to them.  If a Realtor is up front about the additional cost of the house, the cost is factored into my buying decision.

If a buyer wants the home, they may pay the extra few points.  Keep your integrity, inform your client, show the home and build your referrals.

Aaron

If your client selects a house the does not offer a commission to the buyer's agent, as a Realtor you should show the home; however, inform your client that the seller is not paying the commission on this house and they, the buyer, are responsible for the commission at closing.  That helps put a roof over your head and you keep your commitment to proving the best possible service to your clients.

If I found out a Realtor did not show me a home because of a reduced commission, I would fire him or her and never refer anyone to them.  If a Realtor is up front about the additional cost of the house, the cost is factored into my buying decision.

If a buyer wants the home, they may pay the extra few points.  Keep your integrity, inform your client, show the home and build your referrals.

Aaron

If your client selects a house the does not offer a commission to the buyer's agent, as a Realtor you should show the home; however, inform your client that the seller is not paying the commission on this house and they, the buyer, are responsible for the commission at closing.  That helps put a roof over your head and you keep your commitment to proving the best possible service to your clients.

If I found out a Realtor did not show me a home because of a reduced commission, I would fire him or her and never refer anyone to them.  If a Realtor is up front about the additional cost of the house, the cost is factored into my buying decision.

If a buyer wants the home, they may pay the extra few points.  Keep your integrity, inform your client, show the home and build your referrals.

Aaron

Well written and great comments.

The banks have all kinds of excuses for making their own rules. 

But they all stink.

Geeze....that's ridiculous!  You'd think they would want to sell them wouldn't ya. ....This seems biased toward the Realtor for sure.....

Patricia/Seacoast NH

I think we should be a protected class  :)

Yes it would be horrible if an agent bought a house and fixed it up to sell....imagine the travesty of a REALTOR helping to keep the comps up!  Horrible....

I've been seeing more of these lately in the greater Savannah, GA area. Unless it is one heck of a deal it sure wouldn't entice me to to look as an investor. As an investor, I guess you could discount the price in your offer to reflect the commission you would get paid if you sold the property to someone else. Most lenders I've worked with are mainly concerned with their NET.

Gabrielle - Lenn summed it up very succinctly in the first comment above in bold print.  This is yet another hurdle on the long road to real economic recovery.

Amazing! Banks can be so darn stupid!

Micheal - comment #36 - nailed it... Lenn is always spot on, too.

I will never understand these comments...why would they care who buys it as long as it gets sold? Hope you have a great day!

The banks should not care who they sell it. On an ethical note though I think you are obligated to show the property if it is the right fit for the client. Has anyone tried to negoitiate a commision on a "Non-commisionable" property? Might work.

Hey Gabrielle,

The way I would look at it is that the bank isn't offering me a commission, the listing agent is. Unless a local board makes an exception, that would violate a whole bunch of policies. My suggestions would be to discuss it with your board, and ask them to have that listing removed. You might be amazed at how quickly that verbiage changes.

So many comments i didn't read them all. I have been a RE investor for the last decade. Now i am a Realtor. perhaps Dennis has a point. Perhaps it is best that we keep at arms length from these transitions? so few seem to spoil for so many.