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Can i use the buyer Agent commission as my down payment?

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

One particular Buyer asked if they skip using a Buyer broker, can the commission that buyer Agent would have earned be used as their deposit. Buyers are Looking for any way they can to take advantage of the ultra low interest rates by buying a home now. Some are misguided in the shortcuts they are looking to take. Here in the MANCHESTER NH. area and throughout virtually every state, it is illegal to pay a person who does not hold a valid Real Estate license a commission. In reality the Listing agent has to do twice the work when a buyer does not use an agent as the Listing agent is doing the Job that buyer agent would have done.

 

 

If this buyer simply knew a Buyer Agent is there to guide them through each step of the buying process including getting a good purchase price on the property.

 

A GOOD Buyer agent would also help this buyer in getting assistance for their down payment and closing costs through the type of mortgages available and through the seller crediting 3 to 6% towards the buyers closing costs.

 

Short Cuts do not work. That also include the fact you should not take a short cut and hire just ANY agent. Having a GOOD Buyer agent can over come most problems through communication and the expertise to guide the home BUYERS through each step of the home BUYING process.

 

The BEST way to be prepared is by hiring a "GOOD" Agent. One that will guide you through each step of the Buying or Selling process. To the consumers who were successful, they found the secret which I would like to share with you.

 

 

THE TOP TIPS TO FIND A "GREAT" REAL ESTATE AGENT

 

 1. LEARN THIS ONE FACT: One should know that All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest Agent or Company. It is important to Hire the BEST Agent. In NH that could be me.   

2. CHOOSE THE RIGHT AGENT: As a Buyer OR Seller in this market you need every advantage you can to get your home sold. It starts with choosing the right agent. a. Ask for a Full time agent whose sole job is to sell homes. b. Ask for a Full service agent who will guide you through each step of the selling process. Discount brokers often equal discount services. c. Ask for a Local agent who knows your neighborhood and is readily available when you need them is a must. Out of town agents can leave you high and dry in your time of need. d. Ask for a well experienced Listing Agent can give you the advantages you need when selling your home. Not all agents are created equal. Choose only the best.  

 3. HOME BUYERS SHOULD START BY:  Getting a FREE PRE-QUALIFICATION with a local and trusted lender. They will look at your credit and financial picture and let you know what type of mortgage you may qualify for and what your interest rate and monthly payment may be.   

4. HOME SELLERS SHOULD START BYGetting a FREE MARKET ANALYSIS. Learn what your property is worth in today's market along with how ling it may take to sell. If you are ready to sell now, learn what you should ask for it. How much offers may come in at and what the approximate selling price should be. NH Home owners should contact me now.   

 

 

IN SUMMARY the key to having a successful purchase or sale can increase simply choosing a better agent. The secret is that All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. I leave you with now infamous philosophy, which is simple, to provide more personal and professional service to guide my clients through each step of the buying or selling process.

 

 

It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.


If you are thinking of buying a Home please contact us. Get a free pre-qualification along with some of the BEST CUSTOMER SERVICE through each step of the Buying Prices.

 

 

WE STRIVE TO PROVIDE THE BEST POSSIBLE SERVICE THROUGHOUT EACH STEP OF THE LISTING AND SELLING PROCESS!!!

 

If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale which may be able to help you.

Please try and avoid out of state or out of town agents and companies that make "out of this world promises". We are local agents with experience who never charge any up front fees.

 

 

 

We are local agents with experience who GET RESULTS!!!

 

We stand by you through every step in selling your home.

 

Another reason that makes New Hampshire a great place to Live, Work and Play.

 

About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. With 28 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area. To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com . We are Full Time Agents ready to serve all of your Real Estate needs through each step of the buying and Selling process. We are proud to be locally owned and operated.

 

Comments(8)

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

I just had someone call saying he is going to refer his cousin to me. I asked if he was a Realtor and he said, No but I still want a commission. I said thanks, but no thanks!

Feb 12, 2014 09:52 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Seemingly once or twice a week i get asked this. I wonder if it is being featured on one of those TV informercials?

Feb 12, 2014 09:56 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Yes it seems our commission is what everyone wants to get their hands on without thinking about what it means.

Feb 12, 2014 10:49 PM
Hella M. Rothwell, Broker/RealtorĀ®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Scott: By law, we cannot pay anyone a commission or referral who does not have an active real estate license somewhere. Agents can reduce their commission to meet a certain sales price or pay for certain items if the buyer or sellerclient  is not willing to do so, but I think this is not a good business model for the agent. Why give away the store? We work hard and deserve to be paid for what we do.  And, since when would loan companies allow a dual agent to be responsible for the down payment? 

Feb 12, 2014 11:27 PM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Scott some people will try anything. It is sort of like my situation where the out of state Realtor tells me at the last minute she wants a referral. In Illinois you cannot pay a commission to a non licensed person.

Feb 12, 2014 11:45 PM
Roy Kelley
Retired - Gaithersburg, MD

Some home buyers do need educational assistance. Many do not understand the home purchase process and the steps they need to take to protect their interests.

Feb 12, 2014 11:49 PM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Scott - We've never been asked about that particular type of "creative" financing, but a good agent will have some ideas about their buyer's financing to make a deal work better for them, as you do.

Feb 12, 2014 11:56 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Crazy the way some people think. I know you were able to get him thinking straight again, Scott

Feb 13, 2014 12:24 PM