Author Topic: Rebate on New home purchases - Discuss  (Read 40060 times)

0 Members and 1 Guest are viewing this topic.

Offline USCTrojanCPA

  • Realtor aka Realty King
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 1579
  • -Received: 1283
  • Posts: 6888
  • Gender: Male
Re: Rebate on New home purchases - Discuss
« Reply #135 on: April 05, 2017, 09:35:41 PM »
Yep! Bullllllllsh*t!

We used an Agent to purchase a new construction home. The Agent promised verbally that they'd give 50% back on any commission he earned. We thought it was fairly clear and since he was a friend of a friend, there would be no disagreements.

As we approached escrow, he started changing his tune. "I have to pay taxes on the whole chunk", "My broker takes a large cut", etc. I challenged him and said a rebate is not taxable to you and a simple phone call told me that the broker is a flat fee shop, and they take what amounts to less than 1% of his total commission. He ended up giving us what amounted to about 35% of his total commission, 6 weeks after COE. He claimed that IP delayed payment - but it was that he didn't have a complete file with his broker.

I told him that since he decided to change his story and play games, that we would never use him again and would not recommend. There are several quality Agents (such as USC) who are honest and know how this works.

Oh man, sorry to hear that...it's so annoying when agents like that make excuses.  I try to give all of my new home buyers their rebates within a week, if not days after they close even if I don't get paid out by my broker.  The escrow companies usually send me the checks within 2-3 business days after closing (I've only had delayed by a week because they sent the package with the check to the wrong address and it got returned) and my broker takes 24-48 hours to review my file and ACH me the commission.

His loss. Being a successful agent has a heavy dependency on referral business. All he had to do was admit his mistake and make things right. He didn't want to...no business acumen in my opinion.

You nailed it right there...most agents get so focused on what they'll make on the one transaction not realizing that the big money is made on repeat and referral business.  Heck, I have clients have had done 3-4 transactions with me and provided me 4-5 referrals in the past 8-10 years.  About 60% of my business today is repeat and referral business.
Martin Mania
The Force Realty
CA BRE License # 01799007
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

The following member(s) thanked this post:


Offline IrvineBug22

  • Tourist
  • *
  • Thanks
  • -Given: 0
  • -Received: 1
  • Posts: 22
Re: Rebate on New home purchases - Discuss
« Reply #136 on: April 10, 2017, 04:23:58 PM »

To get the broker co op, can I visit the models and not sign the form yhat sales folks ask ? Later if I like I can get a realtor to register us.

That's a little dangerous ESPECIALLY if they recognize you.  Some builders are VERY strict about the rule of the agent accompanying the buyers on the first PHYSICAL visit to the sale office.  Irvine Pacific sales folks are great at remembering who came in their sales offices even when they didn't provide a name.  Maybe roll in there with a hoodie and sunglasses looking like the unibomber.  Or some of my clients sent in their wifes to look at the homes and get pricing and then I registered just the husband alone.  haha
USC How does this work when you register just 1 of them?
« Last Edit: April 10, 2017, 05:30:30 PM by IrvineBug22 »

The following member(s) thanked this post:


Offline USCTrojanCPA

  • Realtor aka Realty King
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 1579
  • -Received: 1283
  • Posts: 6888
  • Gender: Male
Re: Rebate on New home purchases - Discuss
« Reply #137 on: April 10, 2017, 05:45:36 PM »

To get the broker co op, can I visit the models and not sign the form yhat sales folks ask ? Later if I like I can get a realtor to register us.

That's a little dangerous ESPECIALLY if they recognize you.  Some builders are VERY strict about the rule of the agent accompanying the buyers on the first PHYSICAL visit to the sale office.  Irvine Pacific sales folks are great at remembering who came in their sales offices even when they didn't provide a name.  Maybe roll in there with a hoodie and sunglasses looking like the unibomber.  Or some of my clients sent in their wifes to look at the homes and get pricing and then I registered just the husband alone.  haha
USC How does this work when you register just 1 of them?

Well, I'd had a few situations where either the husband or the wife went to go see the models homes.  In those situations, I went in with the other spouse to register and let them know that the husband or wife were out of town on business or visiting family overseas.  The key is for the person who went in first without the agent to not have given them their name or email address and not chatted the sales people up.  Worked fine so far as it was weeks/months after registering with just the one spouse that they would actually select a lot and go into contract (at which time both had to go in to the sales office to sign the contract).  Hope that helps. 
Martin Mania
The Force Realty
CA BRE License # 01799007
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline IrvineBug22

  • Tourist
  • *
  • Thanks
  • -Given: 0
  • -Received: 1
  • Posts: 22
Re: Rebate on New home purchases - Discuss
« Reply #138 on: April 10, 2017, 09:38:10 PM »
Thanks yea the one spouse went and looked around didn't say anything to anyone and then on the way out stopped asked 1 question and left. They didn't give any info.

Offline USCTrojanCPA

  • Realtor aka Realty King
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 1579
  • -Received: 1283
  • Posts: 6888
  • Gender: Male
Re: Rebate on New home purchases - Discuss
« Reply #139 on: April 10, 2017, 10:31:51 PM »
Thanks yea the one spouse went and looked around didn't say anything to anyone and then on the way out stopped asked 1 question and left. They didn't give any info.

Should be no problem then. 
Martin Mania
The Force Realty
CA BRE License # 01799007
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline lynalucard

  • Newbie
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 1
Re: Rebate on New home purchases - Discuss
« Reply #140 on: April 21, 2017, 12:23:33 AM »
The agent I fired registered me two months ago, can I register again with a new agent?

Offline USCTrojanCPA

  • Realtor aka Realty King
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 1579
  • -Received: 1283
  • Posts: 6888
  • Gender: Male
Re: Rebate on New home purchases - Discuss
« Reply #141 on: April 21, 2017, 02:50:48 PM »
The agent I fired registered me two months ago, can I register again with a new agent?

You absolutely can...all you would need is to bring in your new agent to register and then have the old agent's broker provide sign a form to the builder that they are releasing themselves as your agent (I've done this before twice). 
« Last Edit: April 21, 2017, 03:14:14 PM by USCTrojanCPA »
Martin Mania
The Force Realty
CA BRE License # 01799007
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 170
  • -Received: 428
  • Posts: 6305
Re: Rebate on New home purchases - Discuss
« Reply #142 on: April 21, 2017, 03:09:11 PM »
The agent I fired registered me two months ago, can I register again with a new agent?

I wonder how the conversation went. Did it go like this? I like you a lot and your a nice person, BUT your not the agent for me. Your fired!
(joking around)

Offline AW

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 44
  • -Received: 128
  • Posts: 1428
Re: Rebate on New home purchases - Discuss
« Reply #143 on: April 21, 2017, 04:19:28 PM »
The agent I fired registered me two months ago, can I register again with a new agent?

I wonder how the conversation went. Did it go like this? I like you a lot and your a nice person, BUT your not the agent for me. Your fired!
(joking around)
Lol.
Or went something like .....yadda yadda yadda.... 1099....

The following member(s) thanked this post:


Offline eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 170
  • -Received: 428
  • Posts: 6305
Re: Rebate on New home purchases - Discuss
« Reply #144 on: April 21, 2017, 04:27:42 PM »
The agent I fired registered me two months ago, can I register again with a new agent?

I wonder how the conversation went. Did it go like this? I like you a lot and your a nice person, BUT your not the agent for me. Your fired!
(joking around)
Lol.
Or went something like .....yadda yadda yadda.... 1099....

Like this:
OP: (I need to call my agent to ask about the 1099 situation before we start the process)
OP: So are you going to give me a 1099 at the end of the year for the rebate you give me?
Agent: Yes
OP: Your not the agent for me. Ends the call

Lol

#whoknows

Waiting for the op to respond.
« Last Edit: April 21, 2017, 04:48:02 PM by eyephone »

The following member(s) thanked this post:


Offline USCTrojanCPA

  • Realtor aka Realty King
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 1579
  • -Received: 1283
  • Posts: 6888
  • Gender: Male
Re: Rebate on New home purchases - Discuss
« Reply #145 on: April 21, 2017, 04:50:48 PM »
Hahaha  Too funny guy.  But seriously, if any agent trying to 1099 for a rebate that they gave or will give you....JUST SAY NO!
Martin Mania
The Force Realty
CA BRE License # 01799007
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline Borg5000

  • Tourist
  • *
  • Thanks
  • -Given: 1
  • -Received: 4
  • Posts: 17
Re: Rebate on New home purchases - Discuss
« Reply #146 on: May 12, 2017, 12:30:41 PM »
Please explain:

https://www.justice.gov/atr/competition-real-estate-questions-and-answers

May a real estate agent rebate a portion of the agent's commission to the borrower? If so, how should the rebate be listed on the HUD-1?

According to HUD, yes, real estate agents may rebate a portion of the agent's commission to the borrower in a real estate transaction. The rebate must be listed as a credit on page 1 of the HUD-1 in Lines 204-209 and the name of the party giving the credit must be identified. Real estate agent or broker commission rebates to borrowers do not violate Section 8 of RESPA as long as no part of the commission rebate is tied to a referral of business.


Offline USCTrojanCPA

  • Realtor aka Realty King
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 1579
  • -Received: 1283
  • Posts: 6888
  • Gender: Male
Re: Rebate on New home purchases - Discuss
« Reply #147 on: May 12, 2017, 12:43:48 PM »
Please explain:

https://www.justice.gov/atr/competition-real-estate-questions-and-answers

May a real estate agent rebate a portion of the agent's commission to the borrower? If so, how should the rebate be listed on the HUD-1?

According to HUD, yes, real estate agents may rebate a portion of the agent's commission to the borrower in a real estate transaction. The rebate must be listed as a credit on page 1 of the HUD-1 in Lines 204-209 and the name of the party giving the credit must be identified. Real estate agent or broker commission rebates to borrowers do not violate Section 8 of RESPA as long as no part of the commission rebate is tied to a referral of business.



So what am I supposed to do if the builder doesn't allow me to credit the rebate through escrow?  Ok and who will turn me or my client in if I choose to give a rebate to my client outside of escrow? 
Martin Mania
The Force Realty
CA BRE License # 01799007
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline Soylent Green Is People

  • Lender, Abiding Dude.
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 348
  • -Received: 627
  • Posts: 1338
  • Make Room! Make Room!
Re: Rebate on New home purchases - Discuss
« Reply #148 on: May 12, 2017, 01:03:38 PM »
I think the Redfin model assumes that the so named "Redfin Refund" is not a rebate of commissions, but a refund for work performed (and so earned...) by the buyer of the property. Their post closing refund is not listed on any HUD I've ever seen. This is a completely grey area, as if obscured intentionally by HUD and the various Real Estate oversight boards. The practice needs to be clarified to keep everyone on a consistent page.

That said, traditional agents are loath to share commissions with buyers which is why they are beginning to age themselves out of the industry, replaced by more flexible, consumer oriented RE models.

My .02c

The following member(s) thanked this post:


Offline USCTrojanCPA

  • Realtor aka Realty King
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 1579
  • -Received: 1283
  • Posts: 6888
  • Gender: Male
Re: Rebate on New home purchases - Discuss
« Reply #149 on: May 12, 2017, 01:16:16 PM »
I think the Redfin model assumes that the so named "Redfin Refund" is not a rebate of commissions, but a refund for work performed (and so earned...) by the buyer of the property. Their post closing refund is not listed on any HUD I've ever seen. This is a completely grey area, as if obscured intentionally by HUD and the various Real Estate oversight boards. The practice needs to be clarified to keep everyone on a consistent page.

That said, traditional agents are loath to share commissions with buyers which is why they are beginning to age themselves out of the industry, replaced by more flexible, consumer oriented RE models.

My .02c

The traditional commission model is flawed and very long in the tooth.  Unfortunately more agents are sheople and just follow what they have learned from their team leader or broker.  Realtors and innovative aren't two words that people will use in the same sentence.  I guess I've been the rogue agent for over 10 years that chooses not to follow the same old protocol, times change and you have to keep up.
Martin Mania
The Force Realty
CA BRE License # 01799007
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

 

Talk Irvine Links

[Recent Posts]
[FAQ / Rules]

Site Supporters


Related Links

Recent Posts