Desmond Neoh, Your Area Specialist, Multilingual (Weichert, Realtors)

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Rainmaker
2,970,381
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

That's a negotiated item and depends on your broker's policy as well.

Jun 07, 2016 08:58 PM
Ambassador
3,912,547
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

I would talk with your broker in terms of options,  and pros and cons of different strategies

Jun 07, 2016 02:08 PM
Rainmaker
633,936
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

In Hawaii our MLS listings specify the commission that will be paid to the buyer's brokerage. I don't makeit part of the deal.

Jun 07, 2016 01:39 PM
Rainmaker
1,210,224
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Very easily and with no problem getting those signatures!  Seriously though, your broker and your E&O insurance have to allow it (mine does).  You also need to disclose the heck out of it!  In California "Buyer holds an active California Real Estate license" would be a required disclosure.  I'd add on to the prior disclosure "and the buyer is representing themself."  I tack on that last part because out here if I'm writing something up for my family I need to disclose that "Agent is related to buyers."

 

As to the commission issue, you can't use it for the big expenses (like downpayment or actually buying the house, since obviously the house has to close before the money exists).  You COULD use it to cover your closing costs and pocket the remainder, however I'd talk to my accountant first to see wether the deductions I'd get from closing cost expenses would offset the additional income enough to make it worth while, or if I'm better off having no closing expenses and less income.

 

Personally, if all things were equal and my accountant said "flip a coin, both have the same outcome" then I'd use the commission to pay the closing costs so that would be less money I'd have to come up with out of pocket. 

 

Now if I was truely crazy, I'd take the remainder of the commission and put it (or a majority of it) against the mortgage principal (you MUST specify that on the check!!!!) so that I can shave a few months off the life of the mortgage (depending on the loan's payment schedule).

 

Pro tip: If you don't specify "Additional monies to go towards principal" the banks will 99.999% of the time automatically put it towards your next month's payment.  Funny thing, if you get more than a few months ahead, some bank's systems will freak out and actually think you're very late and start the foreclosure process!!!  I've seen it happen.

Jun 08, 2016 11:09 AM
Rainmaker
1,023,712
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Desmond Neoh 

That's a private discussion you would need to have with your broker.

Jun 07, 2016 11:26 PM
Rainmaker
1,520,561
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Commission applied to purchase price to help reduce cash to close.

Jun 07, 2016 11:09 PM
Rainmaker
1,366,627
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Desmond Neoh You don't!! Check your E&O policy, you may not be covered.

Jun 07, 2016 10:49 PM
Rainmaker
2,890,690
Richard Weeks
Dallas, TX
REALTOR®, Broker

I advise in lieu of commission I am lowering the sales price.  Why pay taxes on that commission?

Jun 07, 2016 10:22 PM
Rainer
138,389
Chrissi Chapman Topoleski
Re/Max Real Estate Connections - Haymarket, VA
HOME~There is no place like it!

FTHB= First Time Home Buyer. I had to Google it. Definitely check with your broker.

Jun 07, 2016 09:46 PM
Rainmaker
1,504,290
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Gosh, I wish I knew what FTHB is .....

I do know how to write an offer though.

Jun 07, 2016 09:39 PM
Rainmaker
910,452
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I used my commission to add $10,000 to the seller's NET on one of my deals I did for myself when I was competing. So I was tied for the house until I threw in my commission.

I wish I knew what FTHB was, classic mistake agents make when communicating with their clients, complicating communication with industry talk or "text message" talk over plain English.

Jun 07, 2016 09:15 PM
Rainmaker
729,280
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

I would write it just like i would for any buyer.

Jun 07, 2016 08:43 PM
Rainmaker
3,237,979
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

This should be discussed with your broker.  Good luck and congratulations.

Jun 07, 2016 08:39 PM
Rainmaker
982,279
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

The individual transaction will dictate how it's factored into the sale.

Jun 07, 2016 08:04 PM
Ambassador
2,848,810
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Took it off the commission the one time I purchased a lot.  All other purchases were prior to my real estate career.  I've been in my current house on that lot for 14 years.

Jun 07, 2016 03:07 PM
Ambassador
4,298,221
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Desmond Neoh - I think these are  two separate things. Your commision is what is disclosed in MLS.

Should not bring down the price.... (to best of my knowledge.)

Jun 07, 2016 02:33 PM
Rainmaker
1,523,560
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

I have never paid myself a commission when I sold my own house. I was fortunate that I had brokers who allowed that.  Why would I pay all those taxes?

Jun 07, 2016 02:11 PM
Ambassador
2,343,939
Fred Griffin presently on Leave of Absence
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     That's a question for your Broker, and/or a CPA or Tax Attorney.

     Me personally - as a Broker, I am going to knock down the price, to avoid Federal Income Tax on the commission.

Jun 08, 2016 08:21 AM
Ambassador
4,052,980
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Always ask your broker for clarifications on your state laws and broker's policy on any issues such as these.

Jun 08, 2016 07:08 AM
Rainmaker
3,063,553
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I have ask for 0 commission and lower the price of the home that amount.

Jun 08, 2016 03:09 AM
Rainmaker
2,762,679
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Work that out with your Broker and negotiate terms with the seller. 

Jun 08, 2016 01:49 AM
Rainer
69,288
Shawn and Angela Miller
Berkshire Hathaway HomeServices Amabassador Real Estate - Lincoln, NE
Lincoln and Omaha, NE REALTORS®

We got commission off our flip we purchased for ourselves.  Our broker allows us to buy or sell one property per year without her taking the split.

Jun 07, 2016 11:48 PM
Rainmaker
4,865,098
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

there are many ways to accomplish that.... 

Jun 07, 2016 11:41 PM
Rainmaker
3,049,771
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

What Jeff Dowler CRS said...

Jun 07, 2016 11:12 PM
Rainmaker
2,422,957
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Start here. Agents get commissions. As to how to work it, have fun.

Jun 07, 2016 11:02 PM
Rainmaker
723,904
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

It depends on the deal with  your brokerage.

Jun 07, 2016 10:48 PM
Rainmaker
783,646
Susan Laxson CRS
HomeSmart Professionals - La Quinta, CA
Local Knowledge & Global Network

When my husband was my broker, we only paid a commission to the buyers' agent. Now, I would discuss it with my broker and see how they want to handle it. Some brokerages won't allow you to handle your own transaction.

Jun 07, 2016 10:20 PM
Rainmaker
3,164,393
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Check your Independent Contractor's agreement and Office Policy Manual!

Jun 07, 2016 10:05 PM
Rainmaker
1,816,801
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Thru the years , I have used the commission as part of my DP

Jun 07, 2016 09:56 PM
Rainmaker
291,467
Jack Lewitz
IL Real Estate Specialists - Evanston, IL

Left side vs Right side brain . Or I ask me myself or Irene to sign in my behalf.

Jun 07, 2016 09:37 PM
Rainmaker
4,431,972
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Discuss with broker.

Jun 07, 2016 09:30 PM
Rainmaker
821,770
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

That's for the broker to decide

Jun 07, 2016 09:24 PM
Rainmaker
5,261,719
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Meet the requirements of your broker, your lender and your state.

Jun 07, 2016 09:05 PM
Rainmaker
3,977,611
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have done both

Jun 07, 2016 03:07 PM
Rainmaker
147,907
Esther Preston
Heartland Realty - Redmond, OR

I guess it would depend on the property .

Jun 07, 2016 02:21 PM
Ambassador
3,673,422
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

A lot depends on your agreement with your broker, so it's best to check before trying to use your commission as part of the down payment and closing costs.

Jun 07, 2016 01:48 PM
Rainmaker
983,648
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Listing agent- no charge may be a few hundred closing per your office policy.

Can not do dual agent.

Jun 07, 2016 01:41 PM