Special offer

Buyer will search on his own, but wants rebate from real estate agent

By
Real Estate Agent with Alain Pinel BRE 01367196

Buyer will search for properties, wants rebate from real estate agent who writes offer Dual agent

There will surely be different positions on whether or not a real estate agent should agree to help this gentleman.

The buyer posted his situation. He is a seasoned buyer (has bought at least three properties in the last few years). He will do his own search on the internet and select the property he wants to buy.

But he needs a realtor to write the offer and handle the disclosures. In turn, he wants a rebate which is legal in California. If the sales commission is 3%, agent gets 1%  and  buyer gets 2%. His budget, depending on the city, is between $700,000 to $900,000.

Do the extremely simple math:
$700,000 purchase price = $7,000 commission
$900,000 purchase price = $9,000 commission

Will you help this buyer?

Agents who don’t own their brokerage will have to ask the broker for permission to accept this proposed arrangement. If the broker says no, then it's a moot point.

Others will balk because of principle -- we are professionals, and we certainly work hard for our money beyond the searching part.

Yet others may wonder if perhaps they’re cutting off their nose to spite their face by turning this down.

What would you do?

Comments(7)

Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

It's an interesting idea, Pacita.  When I was working solely as an investor I had agents who did similar things.  It normally cost them about an hour or two of their time.  Not a bad pay out for something you could do over lunch.  I'm sure you'll get lots of opinions.  For me, it would depend on the price of the house and the potential commission.

Aug 27, 2012 05:26 AM
Leslie G. Rojohn
MoonDancer Realty - Sylva, NC
GRI, ABR ~ MoonDancer Realty

It has a whole lot more to do with work involved than the principle of the thing.  Locating the property is usually just the beginning.  After the contract has been written, comes the negotiations, the addendums. the working with the lenders, the attorneys, the appraiser, the inspectors, and on and on it goes.  Finding the property is easy.  Working the deal from beginning to end is time consuming, nerve racking, expensive and often aggravating beyond description.  I might negotiate depending on a lot of factors, but I can't see the day that I do 90% of the work and get 33% of the payday.

Aug 27, 2012 05:43 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Mike -- I remember a few years ago when a seller came to our office and said that he has a buyer who wants to buy his property. They've already agreed on the price and the terms, but wanted to make everything official by having a realtor draw up the paperwork and the disclosures. The broker agreed to a 1% fee to put this transaction in writing.

Leslie -- no question that we do a lot more things than search for a property. But if the situation is like the one I just mentioned to Mike, would you do it?

Aug 27, 2012 06:17 AM
Leslie G. Rojohn
MoonDancer Realty - Sylva, NC
GRI, ABR ~ MoonDancer Realty

As I have said, not if I end up doing more work than him.  I don't care how seasoned he is, if all the things I mentioned still need to be tended to, then no way.

Aug 27, 2012 09:44 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Leslie --- and that's how many other realtors feel, too. You are in the majority opinion :)

Aug 27, 2012 10:00 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Knowing the way investors are, I think I would walk away from this one.  He's probably not as independent in his abilities as he thinks.

Aug 27, 2012 11:14 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Chris --- I think he's having a problem finding someone to help him. Wonder why he doesn't just call the listing agent to write the offer for him, and then ask for a rebate. The double-ending agent just might agree.

Aug 27, 2012 11:18 AM