Talk Irvine

General => Real Estate => General Real Estate and Mortgage Talk => Topic started by: LAtoOC on May 16, 2012, 10:42:29 AM

Title: Rebate on New home purchases - Discuss
Post by: LAtoOC on May 16, 2012, 10:42:29 AM
Or just tell them the Broker is a family member. For some reason a lot of these places (TIC/TNHC) have an "exception" if the broker is related.
Title: Re: Rebate on New home purchases - Discuss
Post by: rkp on May 17, 2012, 10:47:24 AM
i think you mean *dont* tell them right?  they seem to not give the broker coop if its a family member.  someone posted that THNC specifically wouldnt give the rebate to a purchasing couple because one of them was a broker. 

also, even if you have checked out the houses before, unless you filled out a guest card with fully accurate info, there really is no way of them knowing if you came before or not.  ie, send a PM to USCTrojanCPA or IrvineRealtor if you arent sure and want to try to still get the rebate

we took IrvineRealtor with us to Lambert Ranch and the whole process was really easy.  now we just have to get the darn house but thats a different story
Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on May 17, 2012, 12:07:37 PM
I'm too easy to remember.

And too big to sneak by the salespeople.

I think if you have your broker's information that should be enough... but many of them require the broker to actually be there on your first visit... bleh.
Title: Re: Rebate on New home purchases - Discuss
Post by: Jenita143 on June 13, 2012, 11:29:46 PM
my broker is my cousin who's been taking us to see homes around Irvine. She wasn't with us when we decided to pop into Lambert Ranch. If i decide to go with a home there, is it too late to sign her up? We've already registered with them online
Title: Re: Rebate on New home purchases - Discuss
Post by: rkp on June 13, 2012, 11:52:40 PM
Officially, its too late.  Unofficially, people go back with their brokers all the time as the builders arent swiping IDs.  Assuming you didnt sign anything or fill out a guest card or have a very long conversation with one of the sales reps when you visited the models, they would never know if the next time you went was your first time or not. 
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on June 20, 2012, 11:33:34 PM
my broker is my cousin who's been taking us to see homes around Irvine. She wasn't with us when we decided to pop into Lambert Ranch. If i decide to go with a home there, is it too late to sign her up? We've already registered with them online
When you filled out the registration online, did you put in there that you were referred over to the development by your cousin (agent)?  If not, then they might not allow your cousin to register you guys.
Title: Re: Rebate on New home purchases
Post by: SandVball on August 17, 2012, 10:51:56 AM
So since we filled out the registration card at Laguna Altura that wipes out the rebate for all of StoneGate and LA?  I knew we should have given fake info!  >:D
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 17, 2012, 12:24:51 PM
So since we filled out the registration card at Laguna Altura that wipes out the rebate for all of StoneGate and LA?  I knew we should have given fake info!  >:D
No, each development and location is separate.  So if you filled out a registration card at Cortana, you can still register with an agent at Toscana in LA or any of the other Irvine Pacific developments including the ones in Stonegate.  Hope that helps.
Title: Re: Rebate on New home purchases - Discuss
Post by: SandVball on September 17, 2012, 03:40:10 PM
Is this rebate the same thing as the buyers agent's commision?  Or does my agent get a rebate and commision?

Stupid question I know... :-[
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on September 17, 2012, 03:51:41 PM
Is this rebate the same thing as the buyers agent's commision?  Or does my agent get a rebate and commision?

Stupid question I know... :-[
The broker co-op is the new home version of a buyers agent's commission....agent gets a broker co-op for a new home transaction and the buyers agent commission for a re-sale home transaction.  The rebate is just a refund of part of the broker co-op/buyers agent commission to the buyer.
Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on September 17, 2012, 04:07:46 PM
I do hate this "first visit" thing.

I am actively working with an agent and if I decide to visit a model home and my agent isn't with me, they should still honor the co-op if I bring him in with me the next time I visit.

I understand there is some "after the fact" issue... but it's not like these guys aren't making money on the sale regardless of the co-op.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on September 17, 2012, 04:23:40 PM
I do hate this "first visit" thing.

I am actively working with an agent and if I decide to visit a model home and my agent isn't with me, they should still honor the co-op if I bring him in with me the next time I visit.

I understand there is some "after the fact" issue... but it's not like these guys aren't making money on the sale regardless of the co-op.
Irvine Pacific is super strict with that....they told me and my clients before....you cant register with them because I remember seeing them here before (even though they never filled anything out). 
Title: Re: Rebate on New home purchases - Discuss
Post by: SandVball on September 17, 2012, 05:01:52 PM
Thanks USC that makes sense.  I thought that's a large commission check on a new home!

A saleslady in Placentia scolded us for asking if our Agent needed to be present to sign us in.  She was going on about buyers shopping around to find an agent that would give some of it back.  They only had one unit left anyhow so we walked out.
Title: Re: Rebate on New home purchases - Discuss
Post by: SoCal on September 17, 2012, 05:19:41 PM
Irvine Pacific is super strict with that....they told me and my clients before....you can register with them because I remember seeing them here before (even though they never filled anything out). 

Don't you mean they said you "could not" register with them? Am I misunderstanding?
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on September 17, 2012, 05:41:01 PM
Irvine Pacific is super strict with that....they told me and my clients before....you can register with them because I remember seeing them here before (even though they never filled anything out). 

Don't you mean they said you "could not" register with them? Am I misunderstanding?
Typo....I correct it. 
Title: Re: Rebate on New home purchases - Discuss
Post by: lucky on November 09, 2012, 09:30:43 AM
I really, really wish I'd read this before I got sunk. :-\

The wife and I went into an Irvine Pacific sales office. We wanted to go back two days later with our agent and he warned us repeatedly that we should wait a while so they might forget us, but we thought there's no way they would be that strict and told him it'd be alright.

We showed up with him and they absolutely refused to afford him the broker co-op. I even took it up to the Irvine Pacific corporate management and they still refused any kind of consideration.

As we need to buy in six months and have zero other options where we want to purchase, we just put down a deposit there and will be paying the $12,000 commission to our agent out of our own pockets because we have a Buyer Exclusive agreement with him in exchange for him taking zero commission on the sale of our previous home.

The whole experience has been a nightmare and I can't believe we have actually been reduced to paying that much money.

In short: Yes, do NOT go into any sales office unless your agent is with you the first time. (Also note that the co-op agreement they sign has to be renewed every 2 months or so otherwise it expires.)
Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on November 09, 2012, 09:35:12 AM
I do hope that the commission you would have paid him on the sale of your previous home is more than the $12k you have to pay him now.

I'm not sure how enforceable that Buyer Exclusive agreement is but this is the first time I've heard of an arrangement like that when it comes to buying a new home (and if you had that agreement in place prior to your first visit to a new home tract, he should have gone with you then).
Title: Re: Rebate on New home purchases - Discuss
Post by: lucky on November 09, 2012, 09:51:54 AM
No, the commission he would have collected is ~$5,000 less. The Buyer Exclusive agreement is pretty air-tight and does state that he is entitled to a "full commission" on our next home purchase and that I am the one responsible for him receiving his commission.

We tried to work something else out with him (like monthly payments or a lower dollar amount), but he's a greedy shark (like all sales people), and since it's our own fault we went into the sales office after he repeatedly told us not to, we decided we'll just have to pay for our mistake if we want to live there (and we do very, very much).

Yes, he should have gone in with us the first time, and I'm sure he would have, but we just went in on a whim to check out the models without mentioning it to him.
Title: Re: Rebate on New home purchases - Discuss
Post by: SoCal on November 09, 2012, 10:02:33 AM
Lucky,

What is Irvine Pacific offering to the agents? Are you saying they are paying out a "full" commission and not a referral fee? I would find that surprising.

Also, how does your agreement define a "full commission" - - 3%?

I guess what I'm wondering is - wouldn't you pay what the builder would pay and not a dollar more?

Why not overpay the office by the amount he would have gotten if he'd been with you on the first visit then have them cut him a check.
Title: Re: Rebate on New home purchases - Discuss
Post by: SoCal on November 09, 2012, 10:21:56 AM
Or, cut him a check directly for the equivalent amount he stood to collect from the sales office. A quick guesstimate says it's nowhere near $12k.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on November 09, 2012, 11:14:42 AM
Cut his broker a check and 1099 them.  It should be taxable income to him so then you can negotiate with him to pay him a lower amount net of tax and his broker split without a 1099.  That should put the him in his place a bit. 
Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on November 09, 2012, 11:15:45 AM
I think some of the IP co-op commissions are as high as $15k (maybe higher in Laguna Woktura).
Title: Re: Rebate on New home purchases - Discuss
Post by: lucky on November 09, 2012, 01:28:20 PM
@SoCal- No, the "full commission" is a stipulation of my agent's Broker Exclusive agreement with me. If he were to require a "full" commission, he could validly ask for 2.5% to 3% of the sales price, but no, he is collecting the same amount that the builder would have paid him (as a referral fee), which is $12,000.

That's a very good consideration about overpaying on the purchase price in order to cut him the check. If after upgrades we are still within a qualifying loan amount, I'll definitely keep that option in mind. Thanks!

@USCTrojanCPA- It would be 1099-able income even if he took it from the builder, wouldn't it? My guess is he wants it reported anyway for the sake of reporting greater annual income on his Schedule C.
Title: Re: Rebate on New home purchases - Discuss
Post by: SoCal on November 09, 2012, 02:07:23 PM
I had no idea the "referral fees" were so high! That idea I had was to circumvent having to pay the $12k by paying a much lesser amount, which is typically what the referral fees are with other builders -- at least, I always thought so. Iho can correct me on this.  I'm sure it depends on how well they're selling. I suppose it wouldn't help if the fee really is that high other than being able to roll it into your financing for ease of payment.

Lucky, I am so sorry you are going through this. I truly feel bad for you. It gutted me to read your post. I can only imagine what you must be going through. I wish there was some way we could all put our heads together and help figure out a better way.  :( I'm so sorry.
Title: Re: Rebate on New home purchases - Discuss
Post by: lucky on November 10, 2012, 12:45:54 PM
Thanks, SoCal. That's really kind of you to be so empathetic to my family's situation. We've come to terms that there's just no way around it. It really is awful especially because it jeopardizes our ability to even afford to buy the house, but c'est la vie!
Title: Re: Rebate on New home purchases - Discuss
Post by: Park on March 30, 2014, 07:13:44 AM
So i'm looking at picking up another property when Orchard Hill is released.  How does this rebate program work exactly when bringing an agent on the first visit.  If the builder is offering $15,000 to the agent, how much of this rebate is the agent refunding to me?  What is their take and will I end up with a 1099 at the end of this transaction?  Any assistance would be greatly appreciated.
Thanks.
Title: Re: Rebate on New home purchases - Discuss
Post by: IrvineRealtor on March 30, 2014, 04:33:34 PM
So i'm looking at picking up another property when Orchard Hill is released.  How does this rebate program work exactly when bringing an agent on the first visit.  If the builder is offering $15,000 to the agent, how much of this rebate is the agent refunding to me?  What is their take and will I end up with a 1099 at the end of this transaction?  Any assistance would be greatly appreciated.
Thanks.

Depending upon the rest of the terms, I'm open to getting the full amount that I receive back to you, as I've done in the past. (For clarification, if the builder is offering $15000 to the broker, my broker takes their 26% cut before it comes to me.) Net back to you would be up to $11,100.

No 1099. Several references available.

-IrvineRealtor
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 03, 2014, 05:44:49 PM
So i'm looking at picking up another property when Orchard Hill is released.  How does this rebate program work exactly when bringing an agent on the first visit.  If the builder is offering $15,000 to the agent, how much of this rebate is the agent refunding to me?  What is their take and will I end up with a 1099 at the end of this transaction?  Any assistance would be greatly appreciated.
Thanks.
The amount rebated will vary agent by agent so I'd advise asking around.  Some agents have to pay a broker transaction fee or a % of the total gross commission to their broker.  The rebate would be refunded to you via a check after the closing outside of escrow since the builders do not allow the agent to credit the buyers any part of the commission.  No 1099 will be used to you for the rebate because it has been ruled by the IRS that is a return of cost so you would just reduce the tax cost basis in your home when calculating the depreciable basis and the cost basis to calculate the gain/loss on sale.
Title: Re: Rebate on New home purchases - Discuss
Post by: OCBROKER on April 04, 2014, 09:07:23 AM
In regards to commission rebates I had a client lose out on $20,000 rebate in San Juan Capistrano. I advised them not to go in or register, but they still went in but did not register. They did speak to the sales staff a lot and so they remembered them. When I went in with them to register, it was all fine until we had chose a home then they would not allow them to have representation. They stated they have video of the buyers visiting the sales center with out me. So if you are serious about getting a rebate I would suggest not to enter with out your agent. It was a huge loss for them and me.
Title: Re: Rebate on New home purchases - Discuss
Post by: lnc on April 04, 2014, 10:46:10 AM
What happen if you register online prior to grand opening or get pre-qualify before your first visit with your agent.  Are you still eligible for broken rebate?
Title: Re: Rebate on New home purchases - Discuss
Post by: IrvineRealtor on April 04, 2014, 12:34:20 PM
What happen if you register online prior to grand opening or get pre-qualify before your first visit with your agent.  Are you still eligible for broken rebate?

Yes, you are still eligible. The requirement is that your agent accompany you on your first visit to the site, for most all of the builders.

-IR2
Title: Re: Rebate on New home purchases - Discuss
Post by: OCBROKER on April 04, 2014, 04:30:09 PM
As long as you state you have a Realtor when you register online you will be fine. Just make sure you bring your Realtor to the 1st visit to the sales office.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 04, 2014, 07:25:26 PM
In regards to commission rebates I had a client lose out on $20,000 rebate in San Juan Capistrano. I advised them not to go in or register, but they still went in but did not register. They did speak to the sales staff a lot and so they remembered them. When I went in with them to register, it was all fine until we had chose a home then they would not allow them to have representation. They stated they have video of the buyers visiting the sales center with out me. So if you are serious about getting a rebate I would suggest not to enter with out your agent. It was a huge loss for them and me.
Yeah, happened with a few buyers that I went in to register at Irvine Pacific sales offices.  The problem is that the builders don't advertise the broker co-op so buyers are not aware that you need to bring in the agent on your 1st physical visit to the sales office.  I ask all the folks that want me to go register them if they have been in the sales office before (a few have lied to me and the sales people called out the buyers for already having been there without me). 
Title: Re: Rebate on New home purchases - Discuss
Post by: ps9 on April 04, 2014, 08:44:16 PM
In regards to commission rebates I had a client lose out on $20,000 rebate in San Juan Capistrano. I advised them not to go in or register, but they still went in but did not register. They did speak to the sales staff a lot and so they remembered them. When I went in with them to register, it was all fine until we had chose a home then they would not allow them to have representation. They stated they have video of the buyers visiting the sales center with out me. So if you are serious about getting a rebate I would suggest not to enter with out your agent. It was a huge loss for them and me.
Yeah, happened with a few buyers that I went in to register at Irvine Pacific sales offices.  The problem is that the builders don't advertise the broker co-op so buyers are not aware that you need to bring in the agent on your 1st physical visit to the sales office.  I ask all the folks that want me to go register them if they have been in the sales office before (a few have lied to me and the sales people called out the buyers for already having been there without me). 

That must be an awkward moment....wanna get away?
Title: Re: Rebate on New home purchases - Discuss
Post by: Park on April 05, 2014, 09:17:18 PM
I've seen some advertisements that state they will rebate anything over 2% from their fee paid to them by the builder to the home buyer.  I'm not sure if there are any additional catches to this or what this means exactly.  I'll guess when the time comes I'll have to ask and see whats down in writing. 
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 05, 2014, 10:26:28 PM
I've seen some advertisements that state they will rebate anything over 2% from their fee paid to them by the builder to the home buyer.  I'm not sure if there are any additional catches to this or what this means exactly.  I'll guess when the time comes I'll have to ask and see whats down in writing. 
The problem is that most builders in OC are now only offering 1-1.5% of a broker co-op commission (mostly a flat fee of $5k, $10k, or $15k).  You won't see a broker co-op commission over 2% until the market slows down considerably.
Title: Re: Rebate on New home purchases - Discuss
Post by: OCBROKER on April 07, 2014, 08:46:59 AM
I've seen some advertisements that state they will rebate anything over 2% from their fee paid to them by the builder to the home buyer.  I'm not sure if there are any additional catches to this or what this means exactly.  I'll guess when the time comes I'll have to ask and see whats down in writing.

No one in Irvine pays 2% any more on the new construction. The Average is 10k commissions for homes under 800k and anything over is between 12k and 20k tops. I offer my clients a 50/50 deal on all new construction that's the easiest way for me to keep it fair.
Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on April 07, 2014, 09:03:00 AM
I offer my clients a 50/50 deal on all new construction that's the easiest way for me to keep it fair.
Is 50/50 really fair for new construction? After the initial forms signing, doesn't the builder's sales team take over? Or is there other work that the buyer's broker does?

Maybe some other brokers/realtors can chime in here.
Title: Re: Rebate on New home purchases - Discuss
Post by: IrvineRealtor on April 07, 2014, 09:43:04 AM
Fair is a relative term...

I've indicated above how I have worked with clients in the past.
I have a contact that can credit 100% (if $15K is offered by the builder, $15K is credited to buyer at close, with no broker deductions). The downside is that she doesn't have the 800lb gorilla brokerage (CB, FirstTeam, Re/Max, etc.) behind her if the poop hits the fan. That matters to some, but not to everyone.

Fair is also relative to what ELSE is involved... If I've been showing properties with a client for 6 months and working every angle to get them their best deal for half a year, or helped them reduce their property taxes for the past 5 years, or in some other way added value for them, then I'd hope that the efforts have been worth something to them. Likewise, if the only "work" that has taken place is that I've met someone by appointment at a location that they already know and like, how much is a couple of your hours worth? Certainly not $20K.*

*unless you're Mike Trout, in which case you're worth every penny.

And the good mojo goes a long way...

-IR2

 
I offer my clients a 50/50 deal on all new construction that's the easiest way for me to keep it fair.
Is 50/50 really fair for new construction? After the initial forms signing, doesn't the builder's sales team take over? Or is there other work that the buyer's broker does?

Maybe some other brokers/realtors can chime in here.
Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on April 07, 2014, 09:49:13 AM
Thanks IR2.

I understand if there was "other" work involved (like 6 *years* of lookylooing).

I have probably asked this before, but is there any notable broker work during escrow for new homes that is similar to resale work such as working with escrow, inspectors, request for repairs etc etc?
Title: Re: Rebate on New home purchases - Discuss
Post by: IrvineRealtor on April 07, 2014, 09:57:28 AM
Other "notable" broker work would be very little. Referrals for inspections, contractors, etc. could qualify, but most of the heavy lifting is handled by the builder's escrow company and the lender, if needed.

Mostly there is peace of mind on being able to ask someone with more experience in these types of sales. That's also one of the great things that boards like these have to offer, as so many members have bought new locally.


Thanks IR2.

I understand if there was "other" work involved (like 6 *years* of lookylooing).

I have probably asked this before, but is there any notable broker work during escrow for new homes that is similar to resale work such as working with escrow, inspectors, request for repairs etc etc?
Title: Re: Rebate on New home purchases - Discuss
Post by: paperboyNC on April 07, 2014, 01:17:04 PM
Thanks IR2.

I understand if there was "other" work involved (like 6 *years* of lookylooing).

I have probably asked this before, but is there any notable broker work during escrow for new homes that is similar to resale work such as working with escrow, inspectors, request for repairs etc etc?

I didn't use a broker when I bought my new home and I was misled by the sales staff and was not very informed in certain ways. The biggest thing that bugs me is that they had the home listed on the MLS as a single family home but when we went to sign the purchase docs it was a detached condo. I could have backed out, but at that point I was committed.  I did also ask a lot of questions of the sales staff that I may have asked of my broker if I had one. They said they gave me a discount on the home because I didn't have a broker but once I saw all the closing prices I saw that I paid the same and some of the other homes were better lots.  I also hadn't discovered TalkIrvine until after I purchased.

On the other hand, I had a tight schedule and was leaning towards renting. If I had used a broker who had convinced me not to buy the home I might have just rented and missed out on the 20-30% appreciation I have enjoyed.

Martin (USCTrojanCPA) would have certainly pushed me to buy a Taylor Morrison true SFR at Las Ventanas but I actually think I have better appreciation with my detached condo than the Las Ventanas homes and I might have been scared off by the long lead times and high option prices at Las Ventanas and bought nothing.
Title: Re: Rebate on New home purchases - Discuss
Post by: qwerty on April 07, 2014, 01:38:45 PM
Thanks IR2.

I understand if there was "other" work involved (like 6 *years* of lookylooing).

I have probably asked this before, but is there any notable broker work during escrow for new homes that is similar to resale work such as working with escrow, inspectors, request for repairs etc etc?

I didn't use a broker when I bought my new home and I was misled by the sales staff and was not very informed in certain ways. The biggest thing that bugs me is that they had the home listed on the MLS as a single family home but when we went to sign the purchase docs it was a detached condo. I could have backed out, but at that point I was committed.  I did also ask a lot of questions of the sales staff that I may have asked of my broker if I had one. They said they gave me a discount on the home because I didn't have a broker but once I saw all the closing prices I saw that I paid the same and some of the other homes were better lots.  I also hadn't discovered TalkIrvine until after I purchased.

On the other hand, I had a tight schedule and was leaning towards renting. If I had used a broker who had convinced me not to buy the home I might have just rented and missed out on the 20-30% appreciation I have enjoyed.

Martin (USCTrojanCPA) would have certainly pushed me to buy a Taylor Morrison true SFR at Las Ventanas but I actually think I have better appreciation with my detached condo than the Las Ventanas homes and I might have been scared off by the long lead times and high option prices at Las Ventanas and bought nothing.

if you give us your home address IHO can start a poll on which home would have made you richer, your current house or LV.
Title: Re: Rebate on New home purchases - Discuss
Post by: paperboyNC on April 07, 2014, 02:45:20 PM
if you give us your home address IHO can start a poll on which home would have made you richer, your current house or LV.

It's similar to this home (in Sevilla):
http://www.redfin.com/CA/Irvine/38-Prickly-Pear-92618/home/40125498

I paid around $600K all-in including landscaping, window coverings, appliances, closing costs, flooring, upgrades, etc.
Title: Re: Rebate on New home purchases - Discuss
Post by: qwerty on April 07, 2014, 03:12:12 PM
if you give us your home address IHO can start a poll on which home would have made you richer, your current house or LV.

It's similar to this home (in Sevilla):
http://www.redfin.com/CA/Irvine/38-Prickly-Pear-92618/home/40125498

I paid around $600K all-in including landscaping, window coverings, appliances, closing costs, flooring, upgrades, etc.

i was just kidding since the other thread was about opensky revealing to much info which would lead to him getting stalked.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on April 07, 2014, 03:14:18 PM
if you give us your home address IHO can start a poll on which home would have made you richer, your current house or LV.

It's similar to this home (in Sevilla):
http://www.redfin.com/CA/Irvine/38-Prickly-Pear-92618/home/40125498

I paid around $600K all-in including landscaping, window coverings, appliances, closing costs, flooring, upgrades, etc.

i was just kidding since the other thread was about opensky revealing to much info which would lead to him getting stalked.

Stalked by who, the gardener?  ;)
Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on April 07, 2014, 03:46:30 PM
if you give us your home address IHO can start a poll on which home would have made you richer, your current house or LV.

It's similar to this home (in Sevilla):
http://www.redfin.com/CA/Irvine/38-Prickly-Pear-92618/home/40125498

I paid around $600K all-in including landscaping, window coverings, appliances, closing costs, flooring, upgrades, etc.

i was just kidding since the other thread was about opensky revealing to much info which would lead to him getting stalked.
Evidently, you don't even need a home address.

Seems like the TIers with time can find you just by posting the color you painted one of your accent walls.

(mine are pink)
Title: Re: Rebate on New home purchases - Discuss
Post by: OCBROKER on April 07, 2014, 07:11:44 PM
I offer my clients a 50/50 deal on all new construction that's the easiest way for me to keep it fair.
Is 50/50 really fair for new construction? After the initial forms signing, doesn't the builder's sales team take over? Or is there other work that the buyer's broker does?

Maybe some other brokers/realtors can chime in here.

I am there for my clients through the whole process. I do not just sign them in and walk away. I answer questions; I come to the contract signing and walk through when requested. Also most clients have me sign them in to multiple communities (7) Average. I also disclose any all information I may know about the area they purchase in. Sometimes we are able to negotiate a better deal for our clients on quick move in.  Most buyers just sign the contracts and have no clue what's in them and rely on the builder paid sales staff to assist. I would think you would want some sort of representation when you make one of the largest purchases of your life.
Title: Re: Rebate on New home purchases - Discuss
Post by: ps9 on April 07, 2014, 08:57:51 PM
I offer my clients a 50/50 deal on all new construction that's the easiest way for me to keep it fair.
Is 50/50 really fair for new construction? After the initial forms signing, doesn't the builder's sales team take over? Or is there other work that the buyer's broker does?

Maybe some other brokers/realtors can chime in here.

I am there for my clients through the whole process. I do not just sign them in and walk away. I answer questions; I come to the contract signing and walk through when requested. Also most clients have me sign them in to multiple communities (7) Average. I also disclose any all information I may know about the area they purchase in. Sometimes we are able to negotiate a better deal for our clients on quick move in.  Most buyers just sign the contracts and have no clue what's in them and rely on the builder paid sales staff to assist. I would think you would want some sort of representation when you make one of the largest purchases of your life.

So after 8 posts.....who's "I"?
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 07, 2014, 11:56:46 PM
Yeah, not all new home buyers are the same.  Some new home buyers just want to sign up at one sales office and pick a lot.  Others want to go sign up at several developments.  While others want to focus on re-sale homes with having the new homes as a potential back-up/plan B.  So there isn't one type of rebate program that works for every buyer, it depends on several factors.  For some agents is just signing your name, but for me it's more than that.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 08, 2014, 12:04:39 AM
Thanks IR2.

I understand if there was "other" work involved (like 6 *years* of lookylooing).

I have probably asked this before, but is there any notable broker work during escrow for new homes that is similar to resale work such as working with escrow, inspectors, request for repairs etc etc?

I didn't use a broker when I bought my new home and I was misled by the sales staff and was not very informed in certain ways. The biggest thing that bugs me is that they had the home listed on the MLS as a single family home but when we went to sign the purchase docs it was a detached condo. I could have backed out, but at that point I was committed.  I did also ask a lot of questions of the sales staff that I may have asked of my broker if I had one. They said they gave me a discount on the home because I didn't have a broker but once I saw all the closing prices I saw that I paid the same and some of the other homes were better lots.  I also hadn't discovered TalkIrvine until after I purchased.

On the other hand, I had a tight schedule and was leaning towards renting. If I had used a broker who had convinced me not to buy the home I might have just rented and missed out on the 20-30% appreciation I have enjoyed.

Martin (USCTrojanCPA) would have certainly pushed me to buy a Taylor Morrison true SFR at Las Ventanas but I actually think I have better appreciation with my detached condo than the Las Ventanas homes and I might have been scared off by the long lead times and high option prices at Las Ventanas and bought nothing.
I never push any of buyers, but I do want them to consider ALL possible options that may work for them.  For full disclosure, I did like the Las Ventanas Plan 2 and was planning to buy a home there as I was near the top of the list had my West Irvine short sale in Irvine not worked out.  I had several clients who I signed up at Las Ventanas who ended up buying at other locations (Sage, Sevilla, San Mateo, Saratoga).  Heck I had a buyer that I signed up at Las Ventanas that had a slight preference to having a downstairs master so I told them about Sage and they ended up buying the Plan 2 over there. 

The appreciation that you see in your Sevilla home is very similar to the appreciation that you would have seen buying a Plan 2 or 3 at Las Ventanas....about $200k (see example below).

http://www.redfin.com/CA/Irvine/30-Pawprint-92618/home/45378024
Title: Re: Rebate on New home purchases - Discuss
Post by: Park on April 08, 2014, 01:39:26 AM
So what do people think the rebate will be for IP homes at OH when its released. 
Title: Re: Rebate on New home purchases - Discuss
Post by: paperboyNC on April 08, 2014, 08:33:08 AM
I didn't use a broker when I bought my new home and I was misled by the sales staff and was not very informed in certain ways. The biggest thing that bugs me is that they had the home listed on the MLS as a single family home but when we went to sign the purchase docs it was a detached condo. I could have backed out, but at that point I was committed.  I did also ask a lot of questions of the sales staff that I may have asked of my broker if I had one. They said they gave me a discount on the home because I didn't have a broker but once I saw all the closing prices I saw that I paid the same and some of the other homes were better lots.  I also hadn't discovered TalkIrvine until after I purchased.

On the other hand, I had a tight schedule and was leaning towards renting. If I had used a broker who had convinced me not to buy the home I might have just rented and missed out on the 20-30% appreciation I have enjoyed.

Martin (USCTrojanCPA) would have certainly pushed me to buy a Taylor Morrison true SFR at Las Ventanas but I actually think I have better appreciation with my detached condo than the Las Ventanas homes and I might have been scared off by the long lead times and high option prices at Las Ventanas and bought nothing.
I never push any of buyers, but I do want them to consider ALL possible options that may work for them.  For full disclosure, I did like the Las Ventanas Plan 2 and was planning to buy a home there as I was near the top of the list had my West Irvine short sale in Irvine not worked out.  I had several clients who I signed up at Las Ventanas who ended up buying at other locations (Sage, Sevilla, San Mateo, Saratoga).  Heck I had a buyer that I signed up at Las Ventanas that had a slight preference to having a downstairs master so I told them about Sage and they ended up buying the Plan 2 over there. 

The appreciation that you see in your Sevilla home is very similar to the appreciation that you would have seen buying a Plan 2 or 3 at Las Ventanas....about $200k (see example below).

http://www.redfin.com/CA/Irvine/30-Pawprint-92618/home/45378024
[/quote]

I actually wish I had had you represent me. In my budget I would have been buying a Plan 1 at Las Ventanas and once you add in front & back landscaping, window coverings, etc the appreciation is a lot less:
http://www.redfin.com/CA/Irvine/25-Seedling-92618/home/45378187

If I had had better information I probably wouldn't have bought at Sevilla. If there hadn't been a huge price run-up from 2012-13 I'd regret it, but it's really hard to regret that kind of appreciation.
Title: Re: Rebate on New home purchases - Discuss
Post by: OCBROKER on April 08, 2014, 06:51:12 PM
So what do people think the rebate will be for IP homes at OH when its released.

Orchard Hills Broker Coop has not been released yet. Irvine Company usually pays a flat fee at all their communities. Homes under 850k pay between 10k and 12k and homes over 850k pay between 12k and 20k

Hope that helps!
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 09, 2014, 09:44:27 PM
So what do people think the rebate will be for IP homes at OH when its released.

Orchard Hills Broker Coop has not been released yet. Irvine Company usually pays a flat fee at all their communities. Homes under 850k pay between 10k and 12k and homes over 850k pay between 12k and 20k

Hope that helps!
My guess is that the broker co-ops will range from a flat fee of $10k to $15k at Orchard Hills
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 09, 2014, 09:48:46 PM
I didn't use a broker when I bought my new home and I was misled by the sales staff and was not very informed in certain ways. The biggest thing that bugs me is that they had the home listed on the MLS as a single family home but when we went to sign the purchase docs it was a detached condo. I could have backed out, but at that point I was committed.  I did also ask a lot of questions of the sales staff that I may have asked of my broker if I had one. They said they gave me a discount on the home because I didn't have a broker but once I saw all the closing prices I saw that I paid the same and some of the other homes were better lots.  I also hadn't discovered TalkIrvine until after I purchased.

On the other hand, I had a tight schedule and was leaning towards renting. If I had used a broker who had convinced me not to buy the home I might have just rented and missed out on the 20-30% appreciation I have enjoyed.

Martin (USCTrojanCPA) would have certainly pushed me to buy a Taylor Morrison true SFR at Las Ventanas but I actually think I have better appreciation with my detached condo than the Las Ventanas homes and I might have been scared off by the long lead times and high option prices at Las Ventanas and bought nothing.
I never push any of buyers, but I do want them to consider ALL possible options that may work for them.  For full disclosure, I did like the Las Ventanas Plan 2 and was planning to buy a home there as I was near the top of the list had my West Irvine short sale in Irvine not worked out.  I had several clients who I signed up at Las Ventanas who ended up buying at other locations (Sage, Sevilla, San Mateo, Saratoga).  Heck I had a buyer that I signed up at Las Ventanas that had a slight preference to having a downstairs master so I told them about Sage and they ended up buying the Plan 2 over there. 

The appreciation that you see in your Sevilla home is very similar to the appreciation that you would have seen buying a Plan 2 or 3 at Las Ventanas....about $200k (see example below).

http://www.redfin.com/CA/Irvine/30-Pawprint-92618/home/45378024

I actually wish I had had you represent me. In my budget I would have been buying a Plan 1 at Las Ventanas and once you add in front & back landscaping, window coverings, etc the appreciation is a lot less:
http://www.redfin.com/CA/Irvine/25-Seedling-92618/home/45378187

If I had had better information I probably wouldn't have bought at Sevilla. If there hadn't been a huge price run-up from 2012-13 I'd regret it, but it's really hard to regret that kind of appreciation.
[/quote]
Yeah, Plan 2 is the most popular floor plan at Las Ventanas and why most of my clients bought that one.  It was a 4 bedroom, 2000sf+ home with all important downstairs bedroom and full bath and a driveway for less than $700k.  The improving market lifted the prices of all Irvine homes, some more than others.  You could have bought a Laguna Altura home for just under $400/sf when no one wanted one and now they are trading at north of $500/sf.  At the end of the day, those who bought 2009 to 2012 have benefited nicely.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on May 30, 2014, 12:01:07 AM
What happen if you register online prior to grand opening or get pre-qualify before your first visit with your agent.  Are you still eligible for broken rebate?
It's fine to register online and even get pre-approved by the builder's lender without an agent.  The rule is that your first physical visit to the sales office has to be with an agent to be eligible to register with an agent and obtain a broker co-op rebate.
Title: Re: Rebate on New home purchases - Discuss
Post by: meccos12 on May 30, 2014, 06:56:08 PM
Hi guys im new to the forums.
Ive been reading the threads and I see that there are a few realtors in the forum here.
I am thinking about going to orchard hills tomorrow and therefore im looking for a realtor to sign me in. 
Would those in this forum briefly tell me what your fees are and what your services will include?

Thanks and appreciate your help.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on May 30, 2014, 08:47:01 PM
Hi guys im new to the forums.
Ive been reading the threads and I see that there are a few realtors in the forum here.
I am thinking about going to orchard hills tomorrow and therefore im looking for a realtor to sign me in. 
Would those in this forum briefly tell me what your fees are and what your services will include?

Thanks and appreciate your help.

I assume that your buying a house. There is no fee a buyer should pay to the agent.

 The seller pays the fee for the buyer and seller agent, usually 3 percent boths way. (Total of 6 percent)

As you read above, if you go with an agent that signs you in -a nice agent will split the commission with you. (Make sure it's in writing)

Title: Re: Rebate on New home purchases - Discuss
Post by: lnc on May 30, 2014, 09:01:50 PM
Hi guys im new to the forums.
Ive been reading the threads and I see that there are a few realtors in the forum here.
I am thinking about going to orchard hills tomorrow and therefore im looking for a realtor to sign me in. 
Would those in this forum briefly tell me what your fees are and what your services will include?

Thanks and appreciate your help.

I assume that your buying a house. There is no fee a buyer should pay to the agent.

 The seller pays the fee for the buyer and seller agent, usually 3 percent boths way. (Total of 6 percent)

As you read above, if you go with an agent that signs you in -a nice agent will split the commission with you. (Make sure it's in writing)

I think meccos12 is talking about borker co-op rebate for new homes. 

@ meccos12, you should send a PM to IrvineRealtor or USCTrojanCPA about how they split the commission with you.  You can't go wrong with either one of them.

Here's list of broker co-op for OH homes.

Vista Scena - pricing at "low $700,000s" - offering broker co-op of $11,000
Capella - pricing at "low $1,000,000s" - offering broker co-op of $15,000
Saviero - pricing at "mid $1,000,000s" - offering broker co-op of $15,000
Messina - pricing at "mid $1,000,000s" - offering broker co-op of $20,000
Trevi - pricing at "low $2,000,000s" - offering broker co-op of $20,000
Entrata - $11,000 broker co-op ($600k-$700k)
Corte Bella - $13,000 broker co-op ($800k-$900k)
Strada - $16,000 broker co-op (around $1m and up)
 
Title: Re: Rebate on New home purchases - Discuss
Post by: meccos12 on May 30, 2014, 10:32:26 PM
thanks guys for the replies. 
Yes Inc, I really meant the broker co-op fees. 
It seems like irvinerealtor and USCtrojanCPA are two well known guys on these forums.
I will email both of them and see what they both say.

Thanks again
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on May 31, 2014, 03:48:21 PM
thanks guys for the replies. 
Yes Inc, I really meant the broker co-op fees. 
It seems like irvinerealtor and USCtrojanCPA are two well known guys on these forums.
I will email both of them and see what they both say.

Thanks again

I offer full service even for a new home purchase.  Where some agents will just sign you in and then you won't hear from there until you close, I can assist with choosing between upgrades, provide referrals, provide a tax analysis, etc.  The broker co-op is not taxable to buyers or to the agent, it just lowers your cost basis in the home.
Title: Re: Rebate on New home purchases - Discuss
Post by: 8porkchop on June 30, 2014, 09:52:41 PM
Btw, you must make sure your broker is a full time realtor, otherwise, Irvine Pacific will not pay out. I was just notified that Irvine Pacific would not pay my broker due to the fact that most of their incomes is due to loans and not real estate. IP was looking for any excuse not to pay the referral fee.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on June 30, 2014, 09:56:36 PM
Btw, you must make sure your broker is a full time realtor, otherwise, Irvine Pacific will not pay out. I was just notified that Irvine Pacific would not pay my broker due to the fact that most of their incomes is due to loans and not real estate. IP was looking for any excuse not to pay the referral fee.
Wow, I've never heard of that one before.  Maybe he was licensed by not a realtor with one of the local realtor associations?  I'll leave the loans to the experts like Soylent and stick to the real estate. 
Title: Re: Rebate on New home purchases - Discuss
Post by: woodburyowner on July 01, 2014, 12:29:34 PM
Btw, you must make sure your broker is a full time realtor, otherwise, Irvine Pacific will not pay out. I was just notified that Irvine Pacific would not pay my broker due to the fact that most of their incomes is due to loans and not real estate. IP was looking for any excuse not to pay the referral fee.

This statement is a little confusing.  Do you mean, the licensed real estate agent needs to be under a licensed real estate broker who is a member of the Realtor association and must get the majority of income from RE transactions?
Title: Re: Rebate on New home purchases - Discuss
Post by: 8porkchop on August 03, 2014, 01:13:50 PM
My realtor has a broker license to buy and sell, however, the majority of their work is done through loans. Since the majority of the income comes from non home sales this automatically disqualifies them in the broker agreement. In other words selling homes is not their first job but second.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 03, 2014, 05:15:32 PM
My realtor has a broker license to buy and sell, however, the majority of their work is done through loans. Since the majority of the income comes from non home sales this automatically disqualifies them in the broker agreement. In other words selling homes is not their first job but second.
I wonder if that provision is included in all of the new home builder broker co-op agreements.  I guess I'll be sticking to doing real estate and leave the loans to the loan professionals.
Title: Re: Rebate on New home purchases - Discuss
Post by: firsttimehomebuyer on July 17, 2015, 04:02:25 PM
Do we need to have something in written agreement  between our Real estate agent and us about the amount he would keep and the amount he would rebate us back ?
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on July 17, 2015, 06:35:05 PM
Do we need to have something in written agreement  between our Real estate agent and us about the amount he would keep and the amount he would rebate us back ?

Yes. Just in case he said, he never said that.

Title: Re: Rebate on New home purchases - Discuss
Post by: maiz99 on July 17, 2015, 07:14:31 PM
Do we need to have something in written agreement  between our Real estate agent and us about the amount he would keep and the amount he would rebate us back ?


Just use Redfin. They will refund the same amount as resale homes. Say the new home is 1M they will give you about 8k commission refund - same amount of a 1M resale house on their website.

They will disclose that amount of refund upfront with the builder too before the contract signing so there won't be any surprise to any party. Because it's a refund from your money it won't be any tax to you either!

I got my refund check within a week after close. Quick and easy. Thumbs up to Redfin!
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on July 17, 2015, 07:25:11 PM
Do we need to have something in written agreement  between our Real estate agent and us about the amount he would keep and the amount he would rebate us back ?


Just use Redfin. They will refund the same amount as resale homes. Say the new home is 1M they will give you about 8k commission refund - same amount of a 1M resale house on their website.

They will disclose that amount of refund upfront with the builder too before the contract signing so there won't be any surprise to any party. Because it's a refund from your money it won't be any tax to you either!

I got my refund check within a week after close. Quick and easy. Thumbs up to Redfin!

Always have it in writing. There are countless stories on TI, how the agent/broker did not honor the verbal agreement.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on July 17, 2015, 09:16:01 PM
Do we need to have something in written agreement  between our Real estate agent and us about the amount he would keep and the amount he would rebate us back ?

Yes. Just in case he said, he never said that.



I'll provide a written agreement to my clients if they ask for one, but only about 10% of my new home buyers have asked for one.  I think the ones that don't know that my word is as good as gold and losing that would be worth a lot more than keeping all of the commission...besides it's be very, very bad karma.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on July 17, 2015, 09:27:05 PM
Do we need to have something in written agreement  between our Real estate agent and us about the amount he would keep and the amount he would rebate us back ?


Just use Redfin. They will refund the same amount as resale homes. Say the new home is 1M they will give you about 8k commission refund - same amount of a 1M resale house on their website.

They will disclose that amount of refund upfront with the builder too before the contract signing so there won't be any surprise to any party. Because it's a refund from your money it won't be any tax to you either!

I got my refund check within a week after close. Quick and easy. Thumbs up to Redfin!


Not quite true for a couple of reasons.  First, today Redfin no longer rebates 50% of the buyer agent commission....it's more like 31-33%.  And second, the average buyer agent commission for a resale home is 2.50% (98% of the time it'll range from 2% to 3%) while most new home buyer broker co-ops range from a flat fee of $10k to $20k which pencil out to around 1.25% to 1.75% of the price of the home.  There are agents that will refund clients more than 33%, especially for new home purchases. 

One thing you are completely right about is that the refunds are NOT taxable to the buyer or the agent, it is a reduction of cost basis in the home for the buyer and a return/rebate for the agent on their Schedule C. 
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on July 17, 2015, 09:28:33 PM
Do we need to have something in written agreement  between our Real estate agent and us about the amount he would keep and the amount he would rebate us back ?


Just use Redfin. They will refund the same amount as resale homes. Say the new home is 1M they will give you about 8k commission refund - same amount of a 1M resale house on their website.

They will disclose that amount of refund upfront with the builder too before the contract signing so there won't be any surprise to any party. Because it's a refund from your money it won't be any tax to you either!

I got my refund check within a week after close. Quick and easy. Thumbs up to Redfin!

Always have it in writing. There are countless stories on TI, how the agent/broker did not honor the verbal agreement.

And those agents that don't honor their agreements should be outed for being the greedy scumbag realtards that they are. 
Title: Re: Rebate on New home purchases - Discuss
Post by: dream16 on December 28, 2015, 04:50:46 PM
Simply take a redfin agent with you to get some money back from their 3% earnings.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on December 28, 2015, 06:27:33 PM
Simply take a redfin agent with you to get some money back from their 3% earnings.

Redfin doesn't offer up 50% rebates any longer....there's now a minimum that they need to keep and I think the rebate works out to be around 30-35% (depending on the price and commission % of the home). 
Title: Re: Rebate on New home purchases - Discuss
Post by: dream16 on December 28, 2015, 10:03:16 PM
Simply take a redfin agent with you to get some money back from their 3% earnings.

Redfin doesn't offer up 50% rebates any longer....there's now a minimum that they need to keep and I think the rebate works out to be around 30-35% (depending on the price and commission % of the home).

I am about to close on a loan on a brand new condo in Irvine and went through redfin and he did sign up at the builder's log book when we initially checked it out, what's the way out for me now to get rebates from builder?
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on December 28, 2015, 10:26:35 PM
Simply take a redfin agent with you to get some money back from their 3% earnings.

Redfin doesn't offer up 50% rebates any longer....there's now a minimum that they need to keep and I think the rebate works out to be around 30-35% (depending on the price and commission % of the home).

I am about to close on a loan on a brand new condo in Irvine and went through redfin and he did sign up at the builder's log book when we initially checked it out, what's the way out for me now to get rebates from builder?

You can ask the agent (signed by the broker) to submit a change of agency form (can't recall the name) to the builder and replace with another agent. 
Title: Re: Rebate on New home purchases - Discuss
Post by: dream16 on December 29, 2015, 08:46:53 PM
Simply take a redfin agent with you to get some money back from their 3% earnings.

Redfin doesn't offer up 50% rebates any longer....there's now a minimum that they need to keep and I think the rebate works out to be around 30-35% (depending on the price and commission % of the home).

I am about to close on a loan on a brand new condo in Irvine and went through redfin and he did sign up at the builder's log book when we initially checked it out, what's the way out for me now to get rebates from builder?

You can ask the agent (signed by the broker) to submit a change of agency form (can't recall the name) to the builder and replace with another agent.

Sorry, didn't quite understood your statement, so basically requesting the builder to remove my redfin agent from the whole deal (can't happen at this time, as i am already in escrow, his name and signatures have already been on contract etc, so i can't risk a lawsuit now) ?

Or fill out change of agency form and change it to who? builder? or another agent ? (means potential lawsuit)
Title: Re: Rebate on New home purchases - Discuss
Post by: Irvinehomeseeker on April 06, 2016, 05:50:40 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.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 06, 2016, 06:14:50 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
Title: Re: Rebate on New home purchases - Discuss
Post by: Irvinehomeseeker on April 06, 2016, 06:19:24 PM
Good info, thank you!
Title: Re: Rebate on New home purchases - Discuss
Post by: AW on May 15, 2016, 01:41:40 PM
Interesting tiered rebate system, normally it's just a flat number, let's say I give 50% back on new home, done
Title: Re: Rebate on New home purchases - Discuss
Post by: Rizdak on June 09, 2016, 11:39:17 AM
Does anyone know the broker co-op for Pavilion Park or Beacon Park? I want to take a long look at Parasol Park in the future. Thanks.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on June 09, 2016, 06:13:25 PM
Does anyone know the broker co-op for Pavilion Park or Beacon Park? I want to take a long look at Parasol Park in the future. Thanks.

The broker co-op ranged from like $10k to $30k at Pavilion Park from what I recall.  With Beacon Park it also ranged from like $10k and up.  Some builders are getting desperate over there and are offering up as much as 3% or 4%.  So the answer to your question is....it depends. 
Title: Re: Rebate on New home purchases - Discuss
Post by: Nicole Pompey on June 22, 2016, 12:34:18 PM
I read within this thread the recommendation to use a Redfin Agent. I used to be one of their partner agents but after seeing their policy change in February, I withdrew because they became just another money making business. Redfin does charge 30% referral fees to the agents they work with, however once they changed their policy and stopped sharing that with the clients, I asked them to remove me. I also would not agree to be a listing agent with them because I felt that one could not properly fulfill their fiduciary duty of looking out for their clients' best interests with their particular business model. 


~Nicole Pompey
nicole@nicolepompey.com
Title: Re: Rebate on New home purchases - Discuss
Post by: yes2 on August 09, 2016, 06:43:40 AM
What is the norm of buyer rebate on new home in terms of percentage back to buyer.
Ex. if 20k is broker coop what is the rebate to buyer?
Title: Re: Rebate on New home purchases - Discuss
Post by: Irvinehomeseeker on August 09, 2016, 11:45:54 AM
it depends on the broker. I have seen brokers offering upto 60%  back.
Title: Re: Rebate on New home purchases - Discuss
Post by: rkp on August 09, 2016, 12:04:38 PM
A few builders are putting exclusions on buyer rebates meaning it would have to be done outside of escrow.  Some agents won't as it violates some lending rules while others will.  Check with your agent on they handle this.  My friends just ran into this recently at an Irvine Pacific property.

When PP opened, I remember agents loitering in the parking lot and trying to walk in customers.  They were giving back everything but a few thousand to walk you in.  I have seen agents keep only $2000 and give back everything else while others keep 20% and give back rest after a minimum.  On $20K coop, I think with a few calls, you will find an agent ready to give you back at least $15K.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 09, 2016, 03:15:56 PM
All depends on the agent, their commission split with their broker, broker transaction fees, repeat or first-time client, and how much time they spent with their clients prior to registering their buyer at sales offices of new home builders.  Many agents don't give any kind of rebates (mainly because they think they are above that) and others provide rebate.  My repeat clients get larger rebates than my first-time clients. 
Title: Re: Rebate on New home purchases - Discuss
Post by: itsme90640 on August 21, 2016, 09:37:29 AM
Hello All,

I’m an Independent licensed local California Real Estate Broker.I'll give MAX discounts/REBATES to  all my clients - BUYERS/SELLERS. I am the BEST REALTOR/BROKER  in Southern California. I’ve sold condominiums, Single Family homes,Duplex and apartment buildings in Southern California and pride myself on high quality of service and low real estate fees.I’m a member of largest Multiple listing service – serving all cities in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Northern California counties.I can provide you with free property price evaluation prior to listing it for sale in MLS. Please feel free to reach me @ five one zero two zero five six one six seven  email id : rrkolmi@gmail.com

Thank you,
Raj Kolmi
RRKOLMI@gmail.com
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on August 21, 2016, 10:08:18 AM
What do you mean by max discounts? Please be more specific and give examples. (If you like)
Title: Re: Rebate on New home purchases - Discuss
Post by: itsme90640 on August 21, 2016, 10:25:55 AM
MAX discounts on listing the property
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on August 21, 2016, 10:35:09 AM
MAX discounts on listing the property

That's not being specific. I think giving a percentage of the commission would be better.
Title: Re: Rebate on New home purchases - Discuss
Post by: itsme90640 on August 21, 2016, 09:14:53 PM
pls call me ..we can discuss  more on it.
Title: Re: Rebate on New home purchases - Discuss
Post by: Soylent Green Is People on August 22, 2016, 05:22:04 AM
So far I see only one sale: 12523 Sagrantino Ct #33, Rancho Cucamonga, CA 91739. What other properties have you provided buyers for or have listed for sale? Big claims of savings, discounts, and abilities require some pretty strong evidence. Please list here a few addresses of what you've sold so far in the last quarter please.

My .02c
Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on August 22, 2016, 09:52:00 AM
MAX I say!!
Title: Re: Rebate on New home purchases - Discuss
Post by: zubs on August 22, 2016, 10:03:46 AM
I love max discounts because you know you are getting the maximum discount!...any less would not be max discounts, and as I've told you, I give max discounts!

max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts
max discounts

internet bullying intensifies

MAX DISCOUNTS!!!!!!!!!!!!!!!!

In case he deletes his post...I'll quote it here for science...

Hello All,

I’m an Independent licensed local California Real Estate Broker.I'll give MAX discounts/REBATES to  all my clients - BUYERS/SELLERS. I am the BEST REALTOR/BROKER  in Southern California. I’ve sold condominiums, Single Family homes,Duplex and apartment buildings in Southern California and pride myself on high quality of service and low real estate fees.I’m a member of largest Multiple listing service – serving all cities in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Northern California counties.I can provide you with free property price evaluation prior to listing it for sale in MLS. Please feel free to reach me @ five one zero two zero five six one six seven  email id : rrkolmi@gmail.com

Thank you,
Raj Kolmi
RRKOLMI@gmail.com
Title: Re: Rebate on New home purchases - Discuss
Post by: zubs on August 22, 2016, 10:52:59 AM

(https://cdn.meme.am/instances/500x/71256281.jpg)

(https://cdn.meme.am/instances/500x/71256379.jpg)

(https://cdn.meme.am/instances/500x/71256490.jpg)
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 22, 2016, 01:35:21 PM
Tough crowd, glad I already took my forum initiation lumps back in the IHB days.  haha
Title: Re: Rebate on New home purchases - Discuss
Post by: IrvineRealtor on August 24, 2016, 11:51:29 AM
(https://66.media.tumblr.com/cde20fc2b5009bf8b18cfdcb8ae5188e/tumblr_noys8mkgT11s0my1wo1_250.gif)
Title: Re: Rebate on New home purchases - Discuss
Post by: zubs on August 24, 2016, 12:05:33 PM
Late to the party?  Here i'll make one up just for you.

(https://cdn.meme.am/instances/500x/71299750.jpg)
Title: Re: Rebate on New home purchases - Discuss
Post by: aquabliss on August 24, 2016, 12:06:36 PM
The maximum discount I would expect to receive from a realtor is their entire commission, in the form of $100 bills.  Anything less would not be the maximum.  Anything more would surely exceed the maximum.

Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on August 24, 2016, 03:45:29 PM
(https://cdn.meme.am/instances/500x/71304094.jpg)
Title: Re: Rebate on New home purchases - Discuss
Post by: zubs on August 24, 2016, 04:45:52 PM
max discounts is the gift that keeps on giving....like the herp.

is this turnip out of blood?...nope

(https://cdn.meme.am/instances/500x/71305077.jpg)
Title: Re: Rebate on New home purchases - Discuss
Post by: IrvineRealtor on August 29, 2016, 10:17:36 AM
True story:

(https://i.imgflip.com/19p3sf.jpg)

-IR2
Title: Re: Rebate on New home purchases - Discuss
Post by: Panda on August 30, 2016, 04:17:26 PM
(https://s15.postimg.org/x5fcx8aq3/Yao_Ming_001260473.jpg)

I try not to get involved with non-sense threads... but I just couldn't help myself on this one. :)
Title: Re: Rebate on New home purchases - Discuss
Post by: Osotope on September 20, 2016, 03:36:44 AM
Hmm... rebate. Are you sure this is the best route to take? I being serious is this really the best route to take when doing house endeavors? There is more than one way to look for car endeavors besides rebake... keep that in mind okay.
Title: Re: Rebate on New home purchases - Discuss
Post by: Rizdak on September 20, 2016, 09:02:30 AM
Ahhh on a more serious note, should I invite a realtor with me to the Parasol Park 'meet the builders' event? Seems premature but I also don't want to screw up in the $$ 5 digits.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on September 20, 2016, 09:33:10 AM
Ahhh on a more serious note, should I invite a realtor with me to the Parasol Park 'meet the builders' event? Seems premature but I also don't want to screw up in the $$ 5 digits.

Don't forget to ask about the amount he will give back to you. Also, get that in writing.

#MegaDiscount
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on September 20, 2016, 09:39:58 AM
Ahhh on a more serious note, should I invite a realtor with me to the Parasol Park 'meet the builders' event? Seems premature but I also don't want to screw up in the $$ 5 digits.

Typically the builders will require the agent to accompany the buyers starting with the vip pre-grand opening. 
Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on September 20, 2016, 10:20:36 AM
#MegaDiscount

#MaxDiscountGreaterThanMegaDiscount
Title: Re: Rebate on New home purchases - Discuss
Post by: akkord on September 20, 2016, 11:59:11 AM
Bring a realtor...they may start selling at the pre-grand opening.  Don't want to lose out on the rebate & phase 1 pricing if you see what you like. 

Ahhh on a more serious note, should I invite a realtor with me to the Parasol Park 'meet the builders' event? Seems premature but I also don't want to screw up in the $$ 5 digits.

Typically the builders will require the agent to accompany the buyers starting with the vip pre-grand opening.
Title: Re: Rebate on New home purchases - Discuss
Post by: Osotope on September 25, 2016, 01:07:23 PM
Guys we know that rebates are very unique, and we want people to understand that rebates are totally necessary. People need to really understand what a rebate is. Being able to get rebates means that you are now more involved with yourself. It makes sense to do things that will better yourself and by knowing about rebate you will better yourself definitely.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on September 26, 2016, 09:23:50 AM
What are you trying to say? Seems like you said the same thing.

#maxrebate
Title: Re: Rebate on New home purchases - Discuss
Post by: Fxguy on September 26, 2016, 09:13:07 PM
Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on September 26, 2016, 10:07:55 PM
Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.

Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on September 26, 2016, 10:09:51 PM
What are you trying to say? Seems like you said the same thing.

#maxrebate

Seems like he is saying that you better yourself by knowing about the rebates.
Title: Re: Rebate on New home purchases - Discuss
Post by: Fxguy on September 26, 2016, 11:00:21 PM

So basically it's a as good as cash with no tax is what you're saying. This will be great because I'm about to break a lease with IAC for $5620. Ouch! Not confirmed but I've been reading on here that it's two months rent! It should still leave a little bit of change left over for some new accessories for the house!  8). I appreciate your help!

Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.

Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on September 26, 2016, 11:03:05 PM
What are you trying to say? Seems like you said the same thing.

#maxrebate

Seems like he is saying that you better yourself by knowing about the rebates.

Which doesn't make sense.  ;)
Title: Re: Rebate on New home purchases - Discuss
Post by: AW on September 26, 2016, 11:12:46 PM

Is your agent giving you a 1099 for the rebate.
#notmaxrebates


So basically it's a as good as cash with no tax is what you're saying. This will be great because I'm about to break a lease with IAC for $5620. Ouch! Not confirmed but I've been reading on here that it's two months rent! It should still leave a little bit of change left over for some new accessories for the house!  8). I appreciate your help!

Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.

Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.
Title: Re: Rebate on New home purchases - Discuss
Post by: Bullsback on September 27, 2016, 09:59:30 AM
Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.

Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.
While it impacts the cost basis, does the discount impact the property tax basis?  Or is the property tax based upon the full amount? 
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on September 27, 2016, 12:02:27 PM
Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.

Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.
While it impacts the cost basis, does the discount impact the property tax basis?  Or is the property tax based upon the full amount? 

Sorry, I should have been more clear...the rebate adjusts the cost basis in terms of gain/loss when selling the home, not the property tax cost basis (this is based upon the recorded sales price). 
Title: Re: Rebate on New home purchases - Discuss
Post by: Rizdak on December 20, 2016, 12:19:32 PM
Looking for a realtor to go to Great Park. Please PM me if interested. TY.
Title: Re: Rebate on New home purchases - Discuss
Post by: Jaime on April 02, 2017, 07:47:48 PM
I apologize in advance if this has already been discussed.  If I am interested in a property such as Morro at Orchard Hills, but had previously signed in at a sister property (i.e. Cressa) by the New Home without a broker, will I still be disqualified from any rebate?

Also, is everyone POSITIVE that by signing up to be on an interest list online, that this does NOT disqualify you from the rebate?  (Sounded like people weren't 100% sure about this -- I just want to confirm).

Thank you!
Title: Re: Rebate on New home purchases - Discuss
Post by: Jaime on April 02, 2017, 07:49:23 PM
Oops, meant to say Morro at Eastwood
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 03, 2017, 12:21:47 AM
Good questions Jaime. If you didn't sign in with an agent at Cressa, you can still sign in at Morro with an agent...each sales office is separate even if it's the same builder.  Also, you can talk to the sales office or email with them and get pre-approved and still register with your agent at the sales office.  The rule is that on your FIRST PHYSICAL visit to the sales office has to be with your agent to be able to register them.  Signing up ONLINE does not disqualify you from registering with your agent.  Let me know if you have any other questions.
Title: Re: Rebate on New home purchases - Discuss
Post by: Jaime on April 03, 2017, 08:19:24 AM
Got it, thank you for the info!
Title: Re: Rebate on New home purchases - Discuss
Post by: Borg5000 on April 05, 2017, 11:07:10 AM
Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.

My agent said he would be violating RESPA and that either he has to give me a gift after he pays taxes on it or pay my company.  I have a corp so it worked fine for him to pay that corp.  Can you clarify on the process?  I can refund that invoice payment and then ask for a check directly to me instead. 
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 05, 2017, 01:24:55 PM
Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.

My agent said he would be violating RESPA and that either he has to give me a gift after he pays taxes on it or pay my company.  I have a corp so it worked fine for him to pay that corp.  Can you clarify on the process?  I can refund that invoice payment and then ask for a check directly to me instead. 

That to me is just an excuse.  If he paid your company that means he's most likely going to issue your company a 1099 and your company will be paying taxes on that rebate.  I've been doing commission rebates for years to my new home buyers.  Let most agents take that stance and I'll keep taking away more of their business.  Most all realtors don't understand the definition of what "earned income" is...remember the buyer has not provided any goods or services to the agent to constitute the rebate being a taxable income to the receiver of that rebate.  I'm a CPA so I kinda know what I'm doing. ;)
Title: Re: Rebate on New home purchases - Discuss
Post by: Borg5000 on April 05, 2017, 02:29:51 PM
You are right.  It is income to my company. 

For our purchase at Silverleaf, it was 12000 that he got.  My options were take 9000 as income to my company (he won't 1099 as my company is s-corp) or take 6000 as a gift and he pays taxes first.  I chose income as I have expenses to bring the taxable income down and figured I could end up with more than 6000.  I was hoping to have it as a cost basis reduction but he said while IRS is fine, it is a RESPA violation and was very nervous.  He was so nervous that I read up a lot on RESPA and feel like I know way too much real estate law for an IT person!

If you truly dont have that concern then I will refer you to my cousin who is also looking to buy.  Would your model also be about 75% rebated back?  How soon do you give the check after closing?
Title: Re: Rebate on New home purchases - Discuss
Post by: best_potsticker_in_town on April 05, 2017, 02:30:40 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.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 05, 2017, 06:42:16 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. 
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 05, 2017, 06:46:43 PM
You are right.  It is income to my company. 

For our purchase at Silverleaf, it was 12000 that he got.  My options were take 9000 as income to my company (he won't 1099 as my company is s-corp) or take 6000 as a gift and he pays taxes first.  I chose income as I have expenses to bring the taxable income down and figured I could end up with more than 6000.  I was hoping to have it as a cost basis reduction but he said while IRS is fine, it is a RESPA violation and was very nervous.  He was so nervous that I read up a lot on RESPA and feel like I know way too much real estate law for an IT person!

If you truly dont have that concern then I will refer you to my cousin who is also looking to buy.  Would your model also be about 75% rebated back?  How soon do you give the check after closing?
You are right.  It is income to my company. 

For our purchase at Silverleaf, it was 12000 that he got.  My options were take 9000 as income to my company (he won't 1099 as my company is s-corp) or take 6000 as a gift and he pays taxes first.  I chose income as I have expenses to bring the taxable income down and figured I could end up with more than 6000.  I was hoping to have it as a cost basis reduction but he said while IRS is fine, it is a RESPA violation and was very nervous.  He was so nervous that I read up a lot on RESPA and feel like I know way too much real estate law for an IT person!

If you truly dont have that concern then I will refer you to my cousin who is also looking to buy.  Would your model also be about 75% rebated back?  How soon do you give the check after closing?

My rebates are given to my new home buyers within days after closing.  Check your PM.
Title: Re: Rebate on New home purchases - Discuss
Post by: best_potsticker_in_town on April 05, 2017, 07:31:38 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.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA 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.
Title: Re: Rebate on New home purchases - Discuss
Post by: IrvineBug22 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?
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA 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. 
Title: Re: Rebate on New home purchases - Discuss
Post by: IrvineBug22 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.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA 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. 
Title: Re: Rebate on New home purchases - Discuss
Post by: lynalucard 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?
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA 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). 
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone 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)
Title: Re: Rebate on New home purchases - Discuss
Post by: AW 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....
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone 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.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA 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!
Title: Re: Rebate on New home purchases - Discuss
Post by: Borg5000 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.

Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA 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? 
Title: Re: Rebate on New home purchases - Discuss
Post by: Soylent Green Is People 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
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA 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.
Title: Re: Rebate on New home purchases - Discuss
Post by: Borg5000 on May 12, 2017, 01:19:27 PM
We worked with Redfin.  They said they can't do rebate when builder prohibits it.  I don' think they provide their rebate after closing as they disclose the rebate to lender and clearly state that it is subject to lender approval.

I like to know my risks going into anything.  I am not mad at my agent for paying my company and me having to deal with the taxes.  If an agent says no problem and doesn't explain the risks, that is more concerning. 

You and your buyer might not tell anyone but IRS can audit you and see the rebates as expenses.  Isn't it possible they say its not an allowed expense as it was done outside of escrow and then will you go back to buyer and ask for some money back or just realize you are paying taxes on money you no longer have? 

I don't think 1099 to buyer is right either but entire thing is broken and I dont blame agents for not wanting to take that risk. 
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on May 12, 2017, 01:41:16 PM
We worked with Redfin.  They said they can't do rebate when builder prohibits it.  I don' think they provide their rebate after closing as they disclose the rebate to lender and clearly state that it is subject to lender approval.

I like to know my risks going into anything.  I am not mad at my agent for paying my company and me having to deal with the taxes.  If an agent says no problem and doesn't explain the risks, that is more concerning. 

You and your buyer might not tell anyone but IRS can audit you and see the rebates as expenses.  Isn't it possible they say its not an allowed expense as it was done outside of escrow and then will you go back to buyer and ask for some money back or just realize you are paying taxes on money you no longer have? 

I don't think 1099 to buyer is right either but entire thing is broken and I dont blame agents for not wanting to take that risk. 

I don't understand what the difference is giving you the money on a pre-tax basis after closing and post-tax after closing in terms of your position, in both circumstances they violate RESPA rules about money going from an agent to the buyer outside of escrow without the knowledge of the lender.  The IRS has audited me and has reaffirmed that my rebates do in fact reduce my gross commission from my 1099 (the check has to have the same name as the closing statement)...I basically provide the IRS agent this inf...

http://www.nsbar.org/content/compensation-to-buyerseller

https://ttlc.intuit.com/questions/2910212-as-a-real-estate-agent-i-rebated-part-of-my-commission-to-the-buyer-after-the-close-of-escrow-by-writing-him-a-check-am-i-required-to-issue-a-1099-form-to-the-buyer

http://www.prnewswire.com/news-releases/irs-rules-that-redfin-does-not-have-to-report-commission-refunds-as-taxable-income-51646237.html

Your agent was lazy and didn't take a little time to do some research on the matter, simple as that.  There are no risks to the buyer as the tax position is fairly clear that agents can rebate their clients commission without having to issue them a 1099.
Title: Re: Rebate on New home purchases - Discuss
Post by: Borg5000 on May 12, 2017, 02:25:27 PM
Ordering services from my company is not a violation of RESPA.  My company provided the services he requested and was paid accordingly.  I happened to use him to buy my house.  I did not receive a rebate from him.  ;)
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on May 12, 2017, 02:42:23 PM
Ordering services from my company is not a violation of RESPA.  My company provided the services he requested and was paid accordingly.  I happened to use him to buy my house.  I did not receive a rebate from him.  ;)

I see what you did there.  haha  I hope that I've provided you and the rest of the folks on the forum with the knowledge that their agents should not 1099 them for rebates made outside of escrow. 
Title: Re: Rebate on New home purchases - Discuss
Post by: Borg5000 on May 12, 2017, 02:49:20 PM
You are very knowledgable and I can see why clients like working with you.  I also can see how confusing this issue is and why other agents are nervous.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on May 12, 2017, 03:13:49 PM
You are very knowledgable and I can see why clients like working with you.  I also can see how confusing this issue is and why other agents are nervous.


Thank you for the compliment, I represent my clients the same way that I would represent myself on a transaction and that seems to work very well.  :)   The matter is definitely not straight forward and does take some effort to try to understand and unfortunately most realtors will not do the legwork needed to understand and make an informed decision and then try to 1099 either client due to their lack of knowledge and willingness to do some research.  Realtors should become more of consultants to their clients than just used car salesmen looking to book some commission dollars.   
Title: Re: Rebate on New home purchases - Discuss
Post by: upon9k on May 12, 2017, 03:48:01 PM
Thank you for the compliment, I represent my clients the same way that I would represent myself on a transaction and that seems to work very well.  :)   The matter is definitely not straight forward and does take some effort to try to understand and unfortunately most realtors will not do the legwork needed to understand and make an informed decision and then try to 1099 either client due to their lack of knowledge and willingness to do some research.  Realtors should become more of consultants to their clients than just used car salesmen looking to book some commission dollars.

That last sentence is the real life truth about Martin.  When we were looking at new constructions and one sales office was pushing us to take a less desirable lot without the conservatory option, he actually said to stand firm and wait for the better lot.  Keep in mind he was pushing his commission payout almost another 6 months out, but he said couldn't advise us being hasty and paying a higher $/sq ft just to close earlier. 
Title: Re: Rebate on New home purchases - Discuss
Post by: best_potsticker_in_town on May 12, 2017, 06:32:41 PM
I have my real estate license, mainly for my own purposes (buy/sell for me or close family). I save some $$$ and I don't have to argue with agents about the rules.

This year, I've heard some 2 very close, out of area, friends a flavor of: "my agent ignores me, is not responsive, laughs me off when I ask for a rebate. I do all the work, send the listings I want to see, and most are open houses."

I feel bad for these friends so I offer to help. I tell them if you see a place you want to write an offer on to let me know. I rebate them a large part of my commission because they do most of the work. They love this model and it's very obvious that I make their best interest top priority. I've also honestly said, "I can't make it to [city] anytime soon, it's best if you use a different agent for a showing" and they're bummed.

It's crazy to hear so many people treated subpar by their agents.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on May 12, 2017, 06:40:37 PM
I have my real estate license, mainly for my own purposes (buy/sell for me or close family). I save some $$$ and I don't have to argue with agents about the rules.

This year, I've heard some 2 very close, out of area, friends a flavor of: "my agent ignores me, is not responsive, laughs me off when I ask for a rebate. I do all the work, send the listings I want to see, and most are open houses."

I feel bad for these friends so I offer to help. I tell them if you see a place you want to write an offer on to let me know. I rebate them a large part of my commission because they do most of the work. They love this model and it's very obvious that I make their best interest top priority. I've also honestly said, "I can't make it to [city] anytime soon, it's best if you use a different agent for a showing" and they're bummed.

It's crazy to hear so many people treated subpar by their agents.

Yeah it's crazy, some agents make you feel like they are doing you a favor and asking for a rebate is insulting to them because they consider themselves as "full-service" agents.  The majority are uneducated, pompous, arrogant, huge attitudes, pushy, and/or know-it all's.  You don't understand how refreshing it is to work with a good agent (speaking for myself on the other side of a transaction), makes the transaction so pleasant and easy.  If they only made it as difficult to get a real estate license as they do a CPA license (college education requirement/s, work under a broker/experience agent for 1-2 years, make the exam lengthier and more difficult with a lower passing rate), that would weed out a lot of the dead weight out quickly but alas the NAR and state realtor associations love collecting their realtor dues.  *SIGH*
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on May 15, 2017, 04:23:08 PM
I have my real estate license, mainly for my own purposes (buy/sell for me or close family). I save some $$$ and I don't have to argue with agents about the rules.

This year, I've heard some 2 very close, out of area, friends a flavor of: "my agent ignores me, is not responsive, laughs me off when I ask for a rebate. I do all the work, send the listings I want to see, and most are open houses."

I feel bad for these friends so I offer to help. I tell them if you see a place you want to write an offer on to let me know. I rebate them a large part of my commission because they do most of the work. They love this model and it's very obvious that I make their best interest top priority. I've also honestly said, "I can't make it to [city] anytime soon, it's best if you use a different agent for a showing" and they're bummed.

It's crazy to hear so many people treated subpar by their agents.

So do you offer a max rebate?  :D ;D ;)
Title: Re: Rebate on New home purchases - Discuss
Post by: best_potsticker_in_town on May 15, 2017, 05:04:19 PM
I have my real estate license, mainly for my own purposes (buy/sell for me or close family). I save some $$$ and I don't have to argue with agents about the rules.

This year, I've heard some 2 very close, out of area, friends a flavor of: "my agent ignores me, is not responsive, laughs me off when I ask for a rebate. I do all the work, send the listings I want to see, and most are open houses."

I feel bad for these friends so I offer to help. I tell them if you see a place you want to write an offer on to let me know. I rebate them a large part of my commission because they do most of the work. They love this model and it's very obvious that I make their best interest top priority. I've also honestly said, "I can't make it to [city] anytime soon, it's best if you use a different agent for a showing" and they're bummed.

It's crazy to hear so many people treated subpar by their agents.

So do you offer a max rebate?  :D ;D ;)

You better believe it. MAX!
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on May 15, 2017, 05:05:29 PM
I have my real estate license, mainly for my own purposes (buy/sell for me or close family). I save some $$$ and I don't have to argue with agents about the rules.

This year, I've heard some 2 very close, out of area, friends a flavor of: "my agent ignores me, is not responsive, laughs me off when I ask for a rebate. I do all the work, send the listings I want to see, and most are open houses."

I feel bad for these friends so I offer to help. I tell them if you see a place you want to write an offer on to let me know. I rebate them a large part of my commission because they do most of the work. They love this model and it's very obvious that I make their best interest top priority. I've also honestly said, "I can't make it to [city] anytime soon, it's best if you use a different agent for a showing" and they're bummed.

It's crazy to hear so many people treated subpar by their agents.

So do you offer a max rebate?  :D ;D ;)

You better believe it. MAX!

Do you give a 1099 after you give the rebate?
Title: Re: Rebate on New home purchases - Discuss
Post by: best_potsticker_in_town on May 15, 2017, 10:11:18 PM
I have my real estate license, mainly for my own purposes (buy/sell for me or close family). I save some $$$ and I don't have to argue with agents about the rules.

This year, I've heard some 2 very close, out of area, friends a flavor of: "my agent ignores me, is not responsive, laughs me off when I ask for a rebate. I do all the work, send the listings I want to see, and most are open houses."

I feel bad for these friends so I offer to help. I tell them if you see a place you want to write an offer on to let me know. I rebate them a large part of my commission because they do most of the work. They love this model and it's very obvious that I make their best interest top priority. I've also honestly said, "I can't make it to [city] anytime soon, it's best if you use a different agent for a showing" and they're bummed.

It's crazy to hear so many people treated subpar by their agents.

So do you offer a max rebate?  :D ;D ;)

You better believe it. MAX!

Do you give a 1099 after you give the rebate?

No way, it's against my religion.  ;) Plus, my deals are primarily with family or close friends and its just not right to 1099 them.
Title: Re: Rebate on New home purchases - Discuss
Post by: IntheVine on May 22, 2017, 09:04:14 AM
Wish I had taken the time to read this thread sooner! Feeling like I did not do my due diligence and research enough even though I've been reading TI more consistently :( Anyway, I have an agent that I brought to every first visit to the sales office, but I just did not know that some agents offer some of the rebate back. We did a lot of our first visits back in Feb this year and although I was looking at resales and new builds, I am pretty sure that I will purchase a new build soon (California Pacific). Currently on a priority list and just waiting for the next phase release. My agent never mentioned offering some of their rebate back and I had no idea this was a thing. Not sure if it is too late for me to even bring this up to our agent? I would appreciate any thoughts or feedback! What would you recommend I say or do in this situation? I like my agent and they have been helpful throughout my whole home search process, but I can't help but feel I'm missing out on this rebate thing!
Title: Re: Rebate on New home purchases - Discuss
Post by: AW on May 22, 2017, 09:19:31 AM
Ask him.
There are a lot of realtors on TI that give a lot back, and not 1099 either.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on May 22, 2017, 09:21:11 AM
Wish I had taken the time to read this thread sooner! Feeling like I did not do my due diligence and research enough even though I've been reading TI more consistently :( Anyway, I have an agent that I brought to every first visit to the sales office, but I just did not know that some agents offer some of the rebate back. We did a lot of our first visits back in Feb this year and although I was looking at resales and new builds, I am pretty sure that I will purchase a new build soon (California Pacific). Currently on a priority list and just waiting for the next phase release. My agent never mentioned offering some of their rebate back and I had no idea this was a thing. Not sure if it is too late for me to even bring this up to our agent? I would appreciate any thoughts or feedback! What would you recommend I say or do in this situation? I like my agent and they have been helpful throughout my whole home search process, but I can't help but feel I'm missing out on this rebate thing!

1. Did you sign an exclusive agreement with your agent? (That you will only use him to buy a house. I don't recommend this.)
2. Bring up the rebate topic with your agent.
3. If he doesn't want to play "ball" then you might have to part ways.
4. You possibly might want to say this. I like you a lot, BUT since you didn't provide me with a rebate your _____. (Fill in the blank)  :D
Title: Re: Rebate on New home purchases - Discuss
Post by: best_potsticker_in_town on May 22, 2017, 09:46:12 AM
Yeah just ask. My guess is your agent will agree to a rebate, but the exact amount (and 1099) will likely be the topic of discussion.

I don't have an IP registration form in front of me, but I believe the form states that there's an expiration. I think it's something like...if buyer doesn't enter into contract within 60 days of registration no commission will be paid unless buyer is re-registered.
Title: Re: Rebate on New home purchases - Discuss
Post by: IntheVine on May 22, 2017, 09:59:30 AM
1. Did you sign an exclusive agreement with your agent? (That you will only use him to buy a house. I don't recommend this.)
2. Bring up the rebate topic with your agent.
3. If he doesn't what to play "ball" then you might have to part ways.
4. You possibly might want to say this. I like you a lot, BUT since you didn't provide me with a rebate your _____. (Fill in the blank)  :D

Thanks eyephone. To answer your question, no I did not sign an exclusive agreement. So, I guess the good news is I have some leverage :)  I will bring the rebate topic up to him.

Also, thanks potstickers. We are well beyond the 60 days since we signed in, we are actually at 90+ days now. Is there anything we have to do specifically to "re-register" or is it just filling out one of those sheets at the sales office again?
Title: Re: Rebate on New home purchases - Discuss
Post by: best_potsticker_in_town on May 22, 2017, 10:14:31 AM
Best is to call the sales office and ask...they may not enforce the expiration. Or, the act of joining the priority list voids the expiration clause. If you want to switch agents, I think they may require your previous agent sign a letter saying they are no longer your agent.
Title: Re: Rebate on New home purchases - Discuss
Post by: IntheVine on May 22, 2017, 11:10:32 AM
Now that I am thinking about what to say to my agent when I bring up the rebate topic to him...any advice on valid points or arguments I can bring up to him besides other agents usually do it? haha...i hope he won't be resistant to the idea, but you never know...
Title: Re: Rebate on New home purchases - Discuss
Post by: AW on May 22, 2017, 11:15:43 AM
Your agent works for you, not the other way around.

It's a heavy referral business, as in you may have current and future referrals, that should perk up your agent's ears.  But first, take care of the rebate...
Title: Re: Rebate on New home purchases - Discuss
Post by: best_potsticker_in_town on May 22, 2017, 11:20:46 AM
From a time commitment perspective, it's a lot less work. Once a buyer enters into a contract with the builder, the sales office handles pretty much everything. As opposed to a re-sale, where there are inspections, appraisals, contingency removals, etc.
Title: Re: Rebate on New home purchases - Discuss
Post by: rickr on May 22, 2017, 11:35:24 AM
USC, you need to do a better job of advertising your services to all new development buyers so people just use you and get their rebate without a hassle. Maybe get one of those spinning sign guys at the corner of each new development doing some acrobatics with your company sign.
Title: Re: Rebate on New home purchases - Discuss
Post by: woodburyowner on May 22, 2017, 11:41:08 AM
Just to be fair to your agent, keep in mind all the time he has spent with you.  Typically, a new construction transaction will mean a lot less time for the buyer agent.  However, if you are the type of person that wants to look at 20+ properties (with him by your side) and have him register you at 10+ sites and pick his brain on every last detail, I would not expect too high of a rebate.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on May 22, 2017, 12:51:22 PM
USC, you need to do a better job of advertising your services to all new development buyers so people just use you and get their rebate without a hassle. Maybe get one of those spinning sign guys at the corner of each new development doing some acrobatics with your company sign.

Too funny, but don't think that I haven't thought of that.  haha

InTheVine, the saying of "you don't get what you don't ask for applies" so don't be scared in asking for a rebate.  Yes, there will be many agents that'll throw the "I'm a full service agent and I don't give rebates" but it never hurts to ask.  If your agent says NO then you can decide if you want to part ways.  Remember, a smart agent looks at things from a big picture perspective in terms of future repeat and referral business instead of how much they'll make on one transaction....I know I do.  I live by the "give up a little now to get more later" motto.  Good luck and keep us posted.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on May 22, 2017, 12:53:12 PM
Just to be fair to your agent, keep in mind all the time he has spent with you.  Typically, a new construction transaction will mean a lot less time for the buyer agent.  However, if you are the type of person that wants to look at 20+ properties (with him by your side) and have him register you at 10+ sites and pick his brain on every last detail, I would not expect too high of a rebate.

This is true, if you the agent has shown you 20+ resale homes and you've visited a dozen new home sales offices it probably wouldn't be reasonable to expect a big rebate.  Also keep in mind that many agents work for a broker that takes a split of the commission which can be as high as 20-25% and that makes it difficult for the agent to give any kind of decent rebate. 
Title: Re: Rebate on New home purchases - Discuss
Post by: IntheVine on May 22, 2017, 01:26:35 PM
thanks again everyone! keep you posted on the outcome. And yea, I totally understand and will keep in mind how much time my agent has spent and his broker's cut. Overall, we only looked at only 1 resale together and probably like 8 new sales offices.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on May 22, 2017, 01:44:23 PM
thanks again everyone! keep you posted on the outcome. And yea, I totally understand and will keep in mind how much time my agent has spent and his broker's cut. Overall, we only looked at only 1 resale together and probably like 8 new sales offices.

Also, make sure your not 1099. (it's like getting bit by a snake. Here's your rebate, but at the end of the year surprise here is a 1099 for the money you got.)
Title: Re: Rebate on New home purchases - Discuss
Post by: jmoney74 on May 22, 2017, 04:07:23 PM
Can anyone send me a link or something I can send to my CPA regarding this? He believes the only way is 1099. Also had a friend go through something with IRS saying it has to be 1099 as well.
Title: Re: Rebate on New home purchases - Discuss
Post by: best_potsticker_in_town on May 22, 2017, 04:12:32 PM
Go back a few pages in this thread and USC posts some content that justifies it. There are also some valid counter arguments too in terms of RESPA.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on May 22, 2017, 04:55:27 PM
Can anyone send me a link or something I can send to my CPA regarding this? He believes the only way is 1099. Also had a friend go through something with IRS saying it has to be 1099 as well.

Private letter ruling
https://www.irs.gov/pub/irs-wd/0721013.pdf

Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on May 22, 2017, 06:02:52 PM
Can anyone send me a link or something I can send to my CPA regarding this? He believes the only way is 1099. Also had a friend go through something with IRS saying it has to be 1099 as well.

Besides the IRS ruling with Redfin, you just need to step back for a second and apply some common sense when it comes to the "earned income" definition.  The IRS defines it as earnings from you working for someone or some company who pays you providing goods and/or a services OR earnings from you owning and running a business or farm (investments, rentals, etc would fall into this group).  Where has the buyer done work for the agent to constitute earned income?  Obviously it's the other way around.  So the rebate is a reduction of the cost basis in the home (the same way it would be if the agent provided the rebate as a credit towards closing costs in escrow).  So I'd also for any agent or CPA to explain to me why a rebate done through escrow is treated a reduction of cost basis but a rebate outside of escrow should be treated as earned income?  See how that makes zero sense.  Just like you have uneducated and/or lazy agents, there are also CPAs that are no better. 
Title: Re: Rebate on New home purchases - Discuss
Post by: Settledinirvine on August 05, 2017, 07:59:58 AM
Hi guys,

Finally moved into my Lantana plan 1x. Been renting in Irvine for the last 8 years. It was quite a transition going from renting to buying.

However, this forum and the members (you all) provided so much wealth of information that made it less stressful.

Through this forum I found a realtor agent to assist me in finding a new build. She and her business partner (Alex) took the time to bring a new client (me) to visit the new builds and sign me in.

We looked at Avalon, Lanterns, and Lantana. I ended settling with Lantana as it provided the best value for what I could afford.

If you do need an agent to assist you, feel free to reach out to her. She is friendly and have knowledge around the new builds in Irvine. She also have experience in resales.
She's not pushy and is trust worthy.

Her contact:
Nicole Pompey
714.743.2112

I'm sure if you reach out to her or anyone else through this forum, then you should be fine.

I'll update in another post regarding the contractors
I used (also recommendations from this forum) for my flooring and windows. Great value and experience.
Title: Re: Rebate on New home purchases - Discuss
Post by: Burn That Belly on August 05, 2017, 08:39:18 AM
x
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on August 05, 2017, 08:51:43 AM
Is this an advertisement?

Hi guys,

Finally moved into my Lantana plan 1x. Been renting in Irvine for the last 8 years. It was quite a transition going from renting to buying.

However, this forum and the members (you all) provided so much wealth of information that made it less stressful.

Through this forum I found a realtor agent to assist me in finding a new build. She and her business partner (Alex) took the time to bring a new client (me) to visit the new builds and sign me in.

We looked at Avalon, Lanterns, and Lantana. I ended settling with Lantana as it provided the best value for what I could afford.

If you do need an agent to assist you, feel free to reach out to her. She is friendly and have knowledge around the new builds in Irvine. She also have experience in resales.
She's not pushy and is trust worthy.

Her contact:
Nicole Pompey
714.743.2112

I'm sure if you reach out to her or anyone else through this forum, then you should be fine.

I'll update in another post regarding the contractors
I used (also recommendations from this forum) for my flooring and windows. Great value and experience.
Title: Re: Rebate on New home purchases - Discuss
Post by: jmoney74 on August 05, 2017, 09:18:07 AM
What is the max rebate you guys have ever gotten?
Title: Re: Rebate on New home purchases - Discuss
Post by: Burn That Belly on August 05, 2017, 09:39:56 AM
x
Title: Re: Rebate on New home purchases - Discuss
Post by: jmoney74 on August 05, 2017, 09:41:19 AM
What is the max rebate you guys have ever gotten?

75%. My friend is a licensed broker. I'm paranoid to the point that I actually looked up his license on the DRE.

Does he 1099?
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on August 05, 2017, 09:58:20 AM
What is the max rebate you guys have ever gotten?

75%. My friend is a licensed broker. I'm paranoid to the point that I actually looked up his license on the DRE.

I guess you don't trust your him.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 05, 2017, 10:04:09 AM
What is the max rebate you guys have ever gotten?

75%. My friend is a licensed broker. I'm paranoid to the point that I actually looked up his license on the DRE.

A friend and you are paranoid?  Man, that is not good.  Some of my clients ask for something in writing for the new home rebate and I'm happy to provide it.  Others know that my word is as good as gold.  Whatever makes my clients the most comfortable is what I do.
Title: Re: Rebate on New home purchases - Discuss
Post by: Burn That Belly on August 05, 2017, 10:47:23 AM
x
Title: Re: Rebate on New home purchases - Discuss
Post by: OCLuvr on August 05, 2017, 10:49:57 AM
I don't know why you had to change your name; going exactly YF route.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on August 05, 2017, 10:51:59 AM
In this world, you can never trust nobody in life and you can never take anybody's word for it. Friend, foe, or a ho.

I only take a leap of faith if they are my bloodline. If not, GTFO or get it on paper.

But checking if he has a license online doesn't enforce the rebate.

Sometimes you have to trust people's vision. Such as Elon, Jack Ma, Steve Jobs (I didn't say Tim  ;))
Title: Re: Rebate on New home purchases - Discuss
Post by: Burn That Belly on August 05, 2017, 10:54:21 AM
x
Title: Re: Rebate on New home purchases - Discuss
Post by: jmoney74 on August 05, 2017, 10:54:50 AM
I don't know why you had to change your name; going exactly YF route.

We all know why and the reason was pretty valid. However everyone knows now.  So who cares.
Title: Re: Rebate on New home purchases - Discuss
Post by: AW on August 05, 2017, 11:02:08 AM
My word is bond.
No need for writing, no 1099.
Title: Re: Rebate on New home purchases - Discuss
Post by: Burn That Belly on August 05, 2017, 11:17:17 AM
x
Title: Re: Rebate on New home purchases - Discuss
Post by: BlackFever on August 05, 2017, 11:58:48 AM
I don't know why you had to change your name; going exactly YF route.

We all know why and the reason was pretty valid. However everyone knows now.  So who cares.



You sure have a lot of free time.  Your wife and her moms money keeping everything peachy at home?  From what she tells everyone nothing about you has changed.
Title: Re: Rebate on New home purchases - Discuss
Post by: jmoney74 on August 05, 2017, 12:11:45 PM
I don't know why you had to change your name; going exactly YF route.

We all know why and the reason was pretty valid. However everyone knows now.  So who cares.



You sure have a lot of free time.  Your wife and her moms money keeping everything peachy at home?  From what she tells everyone nothing about you has changed.

Very peachy bud. Love cashing mommy's checks.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on August 05, 2017, 12:16:09 PM
I don't know why you had to change your name; going exactly YF route.

We all know why and the reason was pretty valid. However everyone knows now.  So who cares.



You sure have a lot of free time.  Your wife and her moms money keeping everything peachy at home?  From what she tells everyone nothing about you has changed.

How do you know J?
Title: Re: Rebate on New home purchases - Discuss
Post by: AW on August 05, 2017, 12:21:06 PM
Consensus that BTB = YF, now it's looking more like BF is the same
Title: Re: Rebate on New home purchases - Discuss
Post by: Burn That Belly on August 05, 2017, 12:57:12 PM
x
Title: Re: Rebate on New home purchases - Discuss
Post by: Burn That Belly on August 05, 2017, 12:59:01 PM
x
Title: Re: Rebate on New home purchases - Discuss
Post by: jmoney74 on August 05, 2017, 01:08:02 PM
I don't know why you had to change your name; going exactly YF route.

We all know why and the reason was pretty valid. However everyone knows now.  So who cares.



You sure have a lot of free time.  Your wife and her moms money keeping everything peachy at home?  From what she tells everyone nothing about you has changed.

Blackfever, I take my wife's money and my parent's money and all the hand me downs. I didn't move out until I was 34 yr old, milking that shit. Believe me, you should try it. It's what I call an oriental handout.  ;D

Lol
Title: Re: Rebate on New home purchases - Discuss
Post by: jmoney74 on August 05, 2017, 01:12:12 PM
I don't know why you had to change your name; going exactly YF route.

We all know why and the reason was pretty valid. However everyone knows now.  So who cares.



You sure have a lot of free time.  Your wife and her moms money keeping everything peachy at home?  From what she tells everyone nothing about you has changed.

Blackfever, I take my wife's money and my parent's money and all the hand me downs. I didn't move out until I was 34 yr old, milking that shit. Believe me, you should try it. It's what I call an oriental handout.  ;D

On the real though. That does sound nice BTB
Title: Re: Rebate on New home purchases - Discuss
Post by: Rizdak on August 05, 2017, 03:32:25 PM
Trollers gonna troll. Must be nice using parents money for EW down payment and having free time to create multiple aliases. I feel sorry for Mrs. Troll.
Title: Re: Rebate on New home purchases - Discuss
Post by: eyephone on August 05, 2017, 05:01:52 PM
Trollers gonna troll. Must be nice using parents money for EW down payment and having free time to create multiple aliases. I feel sorry for Mrs. Troll.

Do you know something that we don't?
Title: Re: Rebate on New home purchases - Discuss
Post by: Burn That Belly on August 05, 2017, 09:48:30 PM
x
Title: Re: Rebate on New home purchases - Discuss
Post by: jmoney74 on August 05, 2017, 09:52:52 PM
I don't know why you had to change your name; going exactly YF route.

We all know why and the reason was pretty valid. However everyone knows now.  So who cares.



You sure have a lot of free time.  Your wife and her moms money keeping everything peachy at home?  From what she tells everyone nothing about you has changed.

How do you know J?

I don't even know J or his wife or his money milking. If thinks he knows who BF is, then it's probably that person. However, I got J's back. Like I said, there ain't nothing wrong with milking that cow. Why? Because when the cow is dead, the milk is yours anyways so you either collect it periodically or all at once.
I prefer to collect periodically, hence, milk that shit all day er day! ;D

On the real though, would be my dream to milk till the cows come home.   However, gotta keep trying to make a dollar out of 15 cent like most folks.
Title: Re: Rebate on New home purchases - Discuss
Post by: MonkeyMayhem on September 23, 2017, 11:14:05 AM
We are interested in one of the new communities that will be opening in Irvine.  If we bring in an agent on our pre-grand opening visit, will this hurt our chances in getting the lot we want (sales agent puts us lower on priority list)?
Title: Re: Rebate on New home purchases - Discuss
Post by: marmott on September 23, 2017, 11:33:23 AM
I don't think so.

Being contingent or not being a cash buyer will have more influence.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on September 23, 2017, 08:33:42 PM
We are interested in one of the new communities that will be opening in Irvine.  If we bring in an agent on our pre-grand opening visit, will this hurt our chances in getting the lot we want (sales agent puts us lower on priority list)?

Absolutely not, I don't know why people think this.  Your place on the wait list is determined when you pre-qualify with the builder's lender (either for a loan or show them your statements if you are a cash buyer) via calling or emailing the builder to get their lender's contact info so that way you can still register with your agent.  I have always advised my new home buyers to get pre-qualified with the builder's lender if they are serious about buying in a particular community.  So if you want to get a particular lot, get pre-qualified with the builder's lender ASAP to get on the list.  You can go with an agent to register with you anytime (but has to be on your FIRST PHYSICAL VISIT to the sales office/models.
Title: Re: Rebate on New home purchases - Discuss
Post by: dpmj1968 on October 21, 2017, 03:25:53 AM
Can anyone send me a link or something I can send to my CPA regarding this? He believes the only way is 1099. Also had a friend go through something with IRS saying it has to be 1099 as well.

Besides the IRS ruling with Redfin, you just need to step back for a second and apply some common sense when it comes to the "earned income" definition.  The IRS defines it as earnings from you working for someone or some company who pays you providing goods and/or a services OR earnings from you owning and running a business or farm (investments, rentals, etc would fall into this group).  Where has the buyer done work for the agent to constitute earned income?  Obviously it's the other way around.  So the rebate is a reduction of the cost basis in the home (the same way it would be if the agent provided the rebate as a credit towards closing costs in escrow).  So I'd also for any agent or CPA to explain to me why a rebate done through escrow is treated a reduction of cost basis but a rebate outside of escrow should be treated as earned income?  See how that makes zero sense.  Just like you have uneducated and/or lazy agents, there are also CPAs that are no better.


My understanding is, if the rebate is done through escrow, (1) the actual amount seller paid to Buyers broker (factoring if Broker gave a rebate to Buyer) is what the Seller reports to the IRS and the rebate portion is treated as a reduction to purchase cost.  So I agree with what you posted on the process through escrow. 


Example, if the full commission that seller was paying to Buyers broker is $10,000, and Buyers broker told Seller and escrow to allocate $5,000 of his/her commission and treat this as a rebate and reduction to the purchase price.  The amount Seller would report on the 1099 issued to Buyers at $5,000 since that is the amount the seller actually paid to the Buyers broker and the other $5,000 would be treated as a Sellers reduction to purchase price.

Using the same example amounts listed above, IF full commission was issued to the Buyers broker outside escrow.  Then the Seller would issue the Buyers broker a 1099 for $10,000 since that is the amount the Seller actually paid the Buyers broker.  So unless the Buyers broker wants to pay taxes on the $10K, he/she will need to redirect the portion of this income towards the Buyer by issuing the Buyer a 1099 for $5K for the portion the Buyers broker gave to Buyer as a rebate outside escrow.  By doing this the Buyers broker will net their income earned from $10K to $5K (10K received from Seller less 5K given back to Buyer via 1099) and the Buyer will pay taxes on the $5K they received from the broker.  Hopefully this makes sense. 

Basically the issuing of 1099 from Buyers broker to Buyer is to benefit the Buyers broker and for them to pay taxes only on the actual amount they received vs. the full amount issued by Seller IF the process was done outside of escrow.

Also not all rebates are considered non taxable income.  Example, rebates issued from utility companies are considered taxable income.

Anyway, my 2 cents.
Title: Re: Rebate on New home purchases - Discuss
Post by: qwerty on October 21, 2017, 06:58:41 AM
@dpmj - your two cents are wrong. All the buyers broker needs to do is deduct the 5k as an expense and there is no need to issue a a 1099 to the buyer. So the buyers broker only pays taxes on the remaining 5k of income. The buyer should not get a 1099 for a rebate of the Home purchase price. The funds from which the buyer is receiving a rebate are all the buyers to begin with which is why a rebate is treated as a reduction of the home purchase price vs income. 
Title: Re: Rebate on New home purchases - Discuss
Post by: dpmj1968 on October 21, 2017, 03:47:21 PM
I stand corrected and you and the original poster are correct.  Rebates from Broker to Buyer are non taxable income.

https://www.inman.com/2011/05/06/tax-practices-real-estate-commissions-rebates/

http://timelineres.blogspot.com/2011/04/while-rebates-from-real-estate-agents.html

Thank you.
Title: Re: Rebate on New home purchases - Discuss
Post by: test on October 21, 2017, 05:16:37 PM
@dpmj - your two cents are wrong. All the buyers broker needs to do is deduct the 5k as an expense and there is no need to issue a a 1099 to the buyer. So the buyers broker only pays taxes on the remaining 5k of income. The buyer should not get a 1099 for a rebate of the Home purchase price. The funds from which the buyer is receiving a rebate are all the buyers to begin with which is why a rebate is treated as a reduction of the home purchase price vs income. 

That may be true but your chances of getting audited go way up with all those deductions.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on October 21, 2017, 05:59:41 PM
@dpmj - your two cents are wrong. All the buyers broker needs to do is deduct the 5k as an expense and there is no need to issue a a 1099 to the buyer. So the buyers broker only pays taxes on the remaining 5k of income. The buyer should not get a 1099 for a rebate of the Home purchase price. The funds from which the buyer is receiving a rebate are all the buyers to begin with which is why a rebate is treated as a reduction of the home purchase price vs income. 

That may be true but your chances of getting audited go way up with all those deductions.


That is correct, hence why I cut checks for my new home rebates.  Then I have both the cancelled check (in the memo section I write in the address) and the closing statement which both have the same name on it. 
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on October 21, 2017, 06:02:40 PM
Can anyone send me a link or something I can send to my CPA regarding this? He believes the only way is 1099. Also had a friend go through something with IRS saying it has to be 1099 as well.

Besides the IRS ruling with Redfin, you just need to step back for a second and apply some common sense when it comes to the "earned income" definition.  The IRS defines it as earnings from you working for someone or some company who pays you providing goods and/or a services OR earnings from you owning and running a business or farm (investments, rentals, etc would fall into this group).  Where has the buyer done work for the agent to constitute earned income?  Obviously it's the other way around.  So the rebate is a reduction of the cost basis in the home (the same way it would be if the agent provided the rebate as a credit towards closing costs in escrow).  So I'd also for any agent or CPA to explain to me why a rebate done through escrow is treated a reduction of cost basis but a rebate outside of escrow should be treated as earned income?  See how that makes zero sense.  Just like you have uneducated and/or lazy agents, there are also CPAs that are no better.


My understanding is, if the rebate is done through escrow, (1) the actual amount seller paid to Buyers broker (factoring if Broker gave a rebate to Buyer) is what the Seller reports to the IRS and the rebate portion is treated as a reduction to purchase cost.  So I agree with what you posted on the process through escrow. 


Example, if the full commission that seller was paying to Buyers broker is $10,000, and Buyers broker told Seller and escrow to allocate $5,000 of his/her commission and treat this as a rebate and reduction to the purchase price.  The amount Seller would report on the 1099 issued to Buyers at $5,000 since that is the amount the seller actually paid to the Buyers broker and the other $5,000 would be treated as a Sellers reduction to purchase price.

Using the same example amounts listed above, IF full commission was issued to the Buyers broker outside escrow.  Then the Seller would issue the Buyers broker a 1099 for $10,000 since that is the amount the Seller actually paid the Buyers broker.  So unless the Buyers broker wants to pay taxes on the $10K, he/she will need to redirect the portion of this income towards the Buyer by issuing the Buyer a 1099 for $5K for the portion the Buyers broker gave to Buyer as a rebate outside escrow.  By doing this the Buyers broker will net their income earned from $10K to $5K (10K received from Seller less 5K given back to Buyer via 1099) and the Buyer will pay taxes on the $5K they received from the broker.  Hopefully this makes sense. 

Basically the issuing of 1099 from Buyers broker to Buyer is to benefit the Buyers broker and for them to pay taxes only on the actual amount they received vs. the full amount issued by Seller IF the process was done outside of escrow.

Also not all rebates are considered non taxable income.  Example, rebates issued from utility companies are considered taxable income.

Anyway, my 2 cents.

To be very precise here's how I do it on my Schedule C...

Line 1 (Gross Receipts/Sales) - I input the 1099 that I receive from my broker (commission rebates made through escrow are reflected in that number)
Line 2 (Returns & Allowances) - I input the total commission rebates made outside of escrow which is a deduction to Line 1

Title: Re: Rebate on New home purchases - Discuss
Post by: HMart on October 22, 2017, 11:48:10 AM
You don't file an 1120-S?
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on October 22, 2017, 12:23:17 PM
You don't file an 1120-S?

No, because I don't own my own brokerage or have agents working for me so there's no real need for me to have an S-corp or LLC for my realtor business.  I'm a sole proprietor on my Schedule C.
Title: Re: Rebate on New home purchases - Discuss
Post by: Zion on October 24, 2017, 01:59:22 PM
any idea how much redfin gives the rebate for the newly built homes? if the rebate is $15000, do they give $7500 to the buyer?
they cut down a lot recently on resale homes rebates.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on October 24, 2017, 06:01:56 PM
any idea how much redfin gives the rebate for the newly built homes? if the rebate is $15000, do they give $7500 to the buyer?
they cut down a lot recently on resale homes rebates.

Redfin doesn't do 50% rebates anymore....it's the same rebate as for a resale homes and new homes, somewhere between 25-33% as long as they get their minimum of like $6k or so.
Title: Re: Rebate on New home purchases - Discuss
Post by: Agent Joe on June 20, 2018, 10:42:29 PM
Hello fellow Irvine residents (and future residents)! I am a licensed realtor in Irvine and would love the opportunity to work with anyone looking to purchase a new home in the area. My contact info is below. :)
Title: Re: Rebate on New home purchases - Discuss
Post by: Compressed-Village on June 20, 2018, 11:09:46 PM
.
Title: Re: Rebate on New home purchases - Discuss
Post by: msuum on June 21, 2018, 07:22:46 PM
Does anyone know how much I have to pay for the listing agent in today's market.  I am thinking to sell my rental home and cash in right now.
Title: Re: Rebate on New home purchases - Discuss
Post by: woodburyowner on June 21, 2018, 08:33:07 PM
Does anyone know how much I have to pay for the listing agent in today's market.  I am thinking to sell my rental home and cash in right now.

Avg is around 2.25%, but I have seen some agents go as low as 1% these days.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on June 21, 2018, 08:34:35 PM
Does anyone know how much I have to pay for the listing agent in today's market.  I am thinking to sell my rental home and cash in right now.

Most agents will ask for 5% (to be split equally between the listing agent and the buyer agent) which frankly doesn't align the listing agent's interest with that of the seller.  I have a variable performance based commission structure which better aligns my commission with the seller's #1 goal (highest price possible).  What you offer up to buyer's agent is depend upon the type of property that you are selling...meaning the less inventory and hotter the market the lower buyer agent commission you can offer.
Title: Re: Rebate on New home purchases - Discuss
Post by: Agent Joe on June 29, 2018, 12:36:28 PM
Does anyone know how much I have to pay for the listing agent in today's market.  I am thinking to sell my rental home and cash in right now.

2-2.5% usually. I'd offer 2.5% to the buyer's agent just to stay competitive.
Title: Re: Rebate on New home purchases - Discuss
Post by: Navigatn on August 07, 2018, 11:48:55 AM
What are the chances a builder will reduce the sales price by the amount of the broker coop if I do not walk in with my agent?  I feel like it would be the easiest way for me to get the so called "max rebate".  I mean, it really doesn't make a difference to the builder.  Either they pay the coop to me as a reduction to the sales price or they cut a check to my agent.  For me as buyer, it makes a huge difference.  Either I get all of the 100% of the coop as a price reduction or I get 50% of it back from my agent after close.

Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 07, 2018, 12:08:16 PM
What are the chances a builder will reduce the sales price by the amount of the broker coop if I do not walk in with my agent?  I feel like it would be the easiest way for me to get the so called "max rebate".  I mean, it really doesn't make a difference to the builder.  Either they pay the coop to me as a reduction to the sales price or they cut a check to my agent.  For me as buyer, it makes a huge difference.  Either I get all of the 100% of the coop as a price reduction or I get 50% of it back from my agent after close.



Almost 0% because the broker co-op is paid out of the marketing budget.  Them reducing the price will hurt the comps for the tract and piss off previous and current buyers.  Before you walk into the sales office, you should call them and ask that when if they tell you no then you can still bring in a agent and register with an agent. 
Title: Re: Rebate on New home purchases - Discuss
Post by: Irvine Dream on August 07, 2018, 12:14:51 PM
What are the chances a builder will reduce the sales price by the amount of the broker coop if I do not walk in with my agent?  I feel like it would be the easiest way for me to get the so called "max rebate".  I mean, it really doesn't make a difference to the builder.  Either they pay the coop to me as a reduction to the sales price or they cut a check to my agent.  For me as buyer, it makes a huge difference.  Either I get all of the 100% of the coop as a price reduction or I get 50% of it back from my agent after close.



Almost 0% because the broker co-op is paid out of the marketing budget.  Them reducing the price will hurt the comps for the tract and piss off previous and current buyers.  Before you walk into the sales office, you should call them and ask that when if they tell you no then you can still bring in a agent and register with an agent.
My experience with CalPacific/Irvine Pacific is that no price reduction/no allowance for upgrade/no nothing even if you go without an agent even when they are providing Broker co-op of 3%
Title: Re: Rebate on New home purchases - Discuss
Post by: Navigatn on August 07, 2018, 12:28:21 PM
What are the chances a builder will reduce the sales price by the amount of the broker coop if I do not walk in with my agent?  I feel like it would be the easiest way for me to get the so called "max rebate".  I mean, it really doesn't make a difference to the builder.  Either they pay the coop to me as a reduction to the sales price or they cut a check to my agent.  For me as buyer, it makes a huge difference.  Either I get all of the 100% of the coop as a price reduction or I get 50% of it back from my agent after close.



Almost 0% because the broker co-op is paid out of the marketing budget.  Them reducing the price will hurt the comps for the tract and piss off previous and current buyers.  Before you walk into the sales office, you should call them and ask that when if they tell you no then you can still bring in a agent and register with an agent.

How would previous and current buyers even find out how much these new homes are closing at?  I'm trying to find out how much previous phases were selling for and I can not.  It's not like new construction sales are listed on Redfin.  Yes, buyers can find out what their models are currently listed at in the sales office, but they don't know what kind of incentives and concessions the builder is offering just to get the last few lots sold so they can release the next phase. 

I've been sending a friend to a sales office to report back the availability and pricing on one of the lingering lot that hasn't sold.  At first, they were firm on the price.  Now they're willing to apply unused upgrade incentives to knock down the price.  I feel like builder is pressuring them to sell out the current phase and they are becoming desperate to do so. 
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 07, 2018, 02:02:17 PM
What are the chances a builder will reduce the sales price by the amount of the broker coop if I do not walk in with my agent?  I feel like it would be the easiest way for me to get the so called "max rebate".  I mean, it really doesn't make a difference to the builder.  Either they pay the coop to me as a reduction to the sales price or they cut a check to my agent.  For me as buyer, it makes a huge difference.  Either I get all of the 100% of the coop as a price reduction or I get 50% of it back from my agent after close.



Almost 0% because the broker co-op is paid out of the marketing budget.  Them reducing the price will hurt the comps for the tract and piss off previous and current buyers.  Before you walk into the sales office, you should call them and ask that when if they tell you no then you can still bring in a agent and register with an agent.

How would previous and current buyers even find out how much these new homes are closing at?  I'm trying to find out how much previous phases were selling for and I can not.  It's not like new construction sales are listed on Redfin.  Yes, buyers can find out what their models are currently listed at in the sales office, but they don't know what kind of incentives and concessions the builder is offering just to get the last few lots sold so they can release the next phase. 

I've been sending a friend to a sales office to report back the availability and pricing on one of the lingering lot that hasn't sold.  At first, they were firm on the price.  Now they're willing to apply unused upgrade incentives to knock down the price.  I feel like builder is pressuring them to sell out the current phase and they are becoming desperate to do so. 

Yeah, your best bet would be to go after a standing inventory home from an old phase.  The only downside will be that most all of the options will have been selected already.  The builder provides the appraiser the closing prices for comps because they have access to the closing statements.  Builders will throw closing cost, lender cost, and design center credits before they reduce the price of the home.  If the builder is willing to negotiate on price, they'll still pay out on the broker co-op because the broker co-op is paid out of a separate bucket (i.e. the builder paying out a broker co-op won't adversely affect the price and credits that you might get).
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 07, 2018, 02:02:59 PM
What are the chances a builder will reduce the sales price by the amount of the broker coop if I do not walk in with my agent?  I feel like it would be the easiest way for me to get the so called "max rebate".  I mean, it really doesn't make a difference to the builder.  Either they pay the coop to me as a reduction to the sales price or they cut a check to my agent.  For me as buyer, it makes a huge difference.  Either I get all of the 100% of the coop as a price reduction or I get 50% of it back from my agent after close.



Almost 0% because the broker co-op is paid out of the marketing budget.  Them reducing the price will hurt the comps for the tract and piss off previous and current buyers.  Before you walk into the sales office, you should call them and ask that when if they tell you no then you can still bring in a agent and register with an agent.
My experience with CalPacific/Irvine Pacific is that no price reduction/no allowance for upgrade/no nothing even if you go without an agent even when they are providing Broker co-op of 3%

Not many builders offer a 3% broker co-op...it's normally some flat amount that translates to around 1.5% to 2% of the sales price.
Title: Re: Rebate on New home purchases - Discuss
Post by: Navigatn on August 07, 2018, 04:28:57 PM
I can see the builder not wanting to lower BASE price, but what if the lot I'm looking at is a view lot with a $100K view premium added on?  Will they be more willing to reduce?  Also, can credits exceed closing costs and fees and the excess paid out to the buyer?
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 07, 2018, 04:51:28 PM
I can see the builder not wanting to lower BASE price, but what if the lot I'm looking at is a view lot with a $100K view premium added on?  Will they be more willing to reduce?  Also, can credits exceed closing costs and fees and the excess paid out to the buyer?

Yeah, you can see if they'll lower the premium on the view lot but I doubt they will because those tend to be the most desirable lots.  The lender will not allow any excess credits beyond the closings costs to be paid to the buyer....that's where the rebate can help because it normally has to be done outside of escrow because builders won't allow it through escrow. 
Title: Re: Rebate on New home purchases - Discuss
Post by: undecided on August 20, 2018, 03:08:35 PM
I have a question that I'm asking on behalf of a friend (also just curious myself).

Are there any rebates being offered for Brisa and Carissa by California Pacific Homes?  How much is the rebate usually?  These are both in Portola Springs, I think identical builds but in different areas.  I'm curious what kind of rebates are being offered, and if there are agents you can recommend that might share the rebate with the buyer.  USC?

Also, this may be a bit paranoid, but is there any chance the builder passes on you as a potential buyer simply because you have a rebate attached to your name?  In other words, would they choose someone else to move up on the priority list ahead of you since they wouldn't have to pay them a rebate?

Thanks in advance!
Title: Re: Rebate on New home purchases - Discuss
Post by: best_potsticker_in_town on August 20, 2018, 06:43:44 PM
I have a question that I'm asking on behalf of a friend (also just curious myself).

Are there any rebates being offered for Brisa and Carissa by California Pacific Homes?  How much is the rebate usually?  These are both in Portola Springs, I think identical builds but in different areas.  I'm curious what kind of rebates are being offered, and if there are agents you can recommend that might share the rebate with the buyer.  USC?

Also, this may be a bit paranoid, but is there any chance the builder passes on you as a potential buyer simply because you have a rebate attached to your name?  In other words, would they choose someone else to move up on the priority list ahead of you since they wouldn't have to pay them a rebate?

Thanks in advance!

This is how it works. You find an agent and he/she signs you in at the Sales Office on your first visit. This makes your agent eligible for a broker co-op, which is paid to your agent at close of escrow. It's up to you how you negotiate your rebate and how much you get. It's done outside of escrow - so the builder never knows. Mainly because they don't allow such a credit at close of escrow. You can write a contract with your agent if you need peace of mind that they'll deliver on their promise to give you a portion of the commission.

With regard to specific developments - you can call and ask. "If I come with my agent on the first visit and purchase, what's the broker co-op you pay the agent?" Some may know on here - but the most accurate answer you'll get is from the sales office. Sometimes quick move-ins get a higher co-op.

That said, ballpark co-op figures... under $1m, the co-op will be around $8k-$12k. Over $1m - $15k-$20k. $2m+ - $25k+.

As far as rebates, I'd ask for nothing less than 50%. More if you're buying a $2m+ home. Don't let agents lecture you on their broker cut, potential income taxes, etc. There are agents who will offer you 50% on new construction.

USC is your guy. I'm a licensed agent - but not a board sponsor...so you should use USC as he keeps this community alive. He won't make you pay his income taxes on the commission either...but that's a whole different topic. ;)
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 20, 2018, 06:59:17 PM
Potsticker is right on the money.  All of the builders in Irvine are offering broker co-op commission to agents that bring a buyer, including CalPac.  CalPac's broker co-op commissions range from $12,000 to $16,000, depending on the development.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on August 20, 2018, 07:28:24 PM
I have a question that I'm asking on behalf of a friend (also just curious myself).

Are there any rebates being offered for Brisa and Carissa by California Pacific Homes?  How much is the rebate usually?  These are both in Portola Springs, I think identical builds but in different areas.  I'm curious what kind of rebates are being offered, and if there are agents you can recommend that might share the rebate with the buyer.  USC?

Also, this may be a bit paranoid, but is there any chance the builder passes on you as a potential buyer simply because you have a rebate attached to your name?  In other words, would they choose someone else to move up on the priority list ahead of you since they wouldn't have to pay them a rebate?

Thanks in advance!

To answer the second part of your question, the builder if not pass up a buyer if they come with an agent for a buyer that came without one.  The priority of where the buyer is on the waitlist is based upon when the buyer gets loan pre-approved with the builder's lender and the builder uses that day/time as the time stamp to determine the placement on the buyer list.
Title: Re: Rebate on New home purchases - Discuss
Post by: test on September 13, 2018, 01:55:31 PM
Can anyone send me a link or something I can send to my CPA regarding this? He believes the only way is 1099. Also had a friend go through something with IRS saying it has to be 1099 as well.

Besides the IRS ruling with Redfin, you just need to step back for a second and apply some common sense when it comes to the "earned income" definition.  The IRS defines it as earnings from you working for someone or some company who pays you providing goods and/or a services OR earnings from you owning and running a business or farm (investments, rentals, etc would fall into this group).  Where has the buyer done work for the agent to constitute earned income?  Obviously it's the other way around.  So the rebate is a reduction of the cost basis in the home (the same way it would be if the agent provided the rebate as a credit towards closing costs in escrow).  So I'd also for any agent or CPA to explain to me why a rebate done through escrow is treated a reduction of cost basis but a rebate outside of escrow should be treated as earned income?  See how that makes zero sense.  Just like you have uneducated and/or lazy agents, there are also CPAs that are no better.


My understanding is, if the rebate is done through escrow, (1) the actual amount seller paid to Buyers broker (factoring if Broker gave a rebate to Buyer) is what the Seller reports to the IRS and the rebate portion is treated as a reduction to purchase cost.  So I agree with what you posted on the process through escrow. 


Example, if the full commission that seller was paying to Buyers broker is $10,000, and Buyers broker told Seller and escrow to allocate $5,000 of his/her commission and treat this as a rebate and reduction to the purchase price.  The amount Seller would report on the 1099 issued to Buyers at $5,000 since that is the amount the seller actually paid to the Buyers broker and the other $5,000 would be treated as a Sellers reduction to purchase price.

Using the same example amounts listed above, IF full commission was issued to the Buyers broker outside escrow.  Then the Seller would issue the Buyers broker a 1099 for $10,000 since that is the amount the Seller actually paid the Buyers broker.  So unless the Buyers broker wants to pay taxes on the $10K, he/she will need to redirect the portion of this income towards the Buyer by issuing the Buyer a 1099 for $5K for the portion the Buyers broker gave to Buyer as a rebate outside escrow.  By doing this the Buyers broker will net their income earned from $10K to $5K (10K received from Seller less 5K given back to Buyer via 1099) and the Buyer will pay taxes on the $5K they received from the broker.  Hopefully this makes sense. 

Basically the issuing of 1099 from Buyers broker to Buyer is to benefit the Buyers broker and for them to pay taxes only on the actual amount they received vs. the full amount issued by Seller IF the process was done outside of escrow.

Also not all rebates are considered non taxable income.  Example, rebates issued from utility companies are considered taxable income.

Anyway, my 2 cents.

To be very precise here's how I do it on my Schedule C...

Line 1 (Gross Receipts/Sales) - I input the 1099 that I receive from my broker (commission rebates made through escrow are reflected in that number)
Line 2 (Returns & Allowances) - I input the total commission rebates made outside of escrow which is a deduction to Line 1



Hope you never get audited because unless it's shown on the HUD-1 then it's not a rebate it's a gift and you can only deduct $25.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on September 13, 2018, 06:51:34 PM
Can anyone send me a link or something I can send to my CPA regarding this? He believes the only way is 1099. Also had a friend go through something with IRS saying it has to be 1099 as well.

Besides the IRS ruling with Redfin, you just need to step back for a second and apply some common sense when it comes to the "earned income" definition.  The IRS defines it as earnings from you working for someone or some company who pays you providing goods and/or a services OR earnings from you owning and running a business or farm (investments, rentals, etc would fall into this group).  Where has the buyer done work for the agent to constitute earned income?  Obviously it's the other way around.  So the rebate is a reduction of the cost basis in the home (the same way it would be if the agent provided the rebate as a credit towards closing costs in escrow).  So I'd also for any agent or CPA to explain to me why a rebate done through escrow is treated a reduction of cost basis but a rebate outside of escrow should be treated as earned income?  See how that makes zero sense.  Just like you have uneducated and/or lazy agents, there are also CPAs that are no better.


My understanding is, if the rebate is done through escrow, (1) the actual amount seller paid to Buyers broker (factoring if Broker gave a rebate to Buyer) is what the Seller reports to the IRS and the rebate portion is treated as a reduction to purchase cost.  So I agree with what you posted on the process through escrow. 


Example, if the full commission that seller was paying to Buyers broker is $10,000, and Buyers broker told Seller and escrow to allocate $5,000 of his/her commission and treat this as a rebate and reduction to the purchase price.  The amount Seller would report on the 1099 issued to Buyers at $5,000 since that is the amount the seller actually paid to the Buyers broker and the other $5,000 would be treated as a Sellers reduction to purchase price.

Using the same example amounts listed above, IF full commission was issued to the Buyers broker outside escrow.  Then the Seller would issue the Buyers broker a 1099 for $10,000 since that is the amount the Seller actually paid the Buyers broker.  So unless the Buyers broker wants to pay taxes on the $10K, he/she will need to redirect the portion of this income towards the Buyer by issuing the Buyer a 1099 for $5K for the portion the Buyers broker gave to Buyer as a rebate outside escrow.  By doing this the Buyers broker will net their income earned from $10K to $5K (10K received from Seller less 5K given back to Buyer via 1099) and the Buyer will pay taxes on the $5K they received from the broker.  Hopefully this makes sense. 

Basically the issuing of 1099 from Buyers broker to Buyer is to benefit the Buyers broker and for them to pay taxes only on the actual amount they received vs. the full amount issued by Seller IF the process was done outside of escrow.

Also not all rebates are considered non taxable income.  Example, rebates issued from utility companies are considered taxable income.

Anyway, my 2 cents.

To be very precise here's how I do it on my Schedule C...

Line 1 (Gross Receipts/Sales) - I input the 1099 that I receive from my broker (commission rebates made through escrow are reflected in that number)
Line 2 (Returns & Allowances) - I input the total commission rebates made outside of escrow which is a deduction to Line 1



Hope you never get audited because unless it's shown on the HUD-1 then it's not a rebate it's a gift and you can only deduct $25.


I have been audited and my position is the same position as Redfin used...it's a reduction of cost basis vs. 1099 income to the buyer because the rebate does not fall under the IRS definition of "earned income" because no goods or services were provided by the buyer to the agent.  It doesn't matter whether the rebate is done via escrow or outside of escrow, that's a formality.  The name of the buyer on the rebate check matches the closing statement exactly and the memo section also has commission rebate - 123 Main Street.
Title: Re: Rebate on New home purchases - Discuss
Post by: test on October 10, 2018, 10:14:53 PM
I didn't say it was earned income.  I said it's a gift.  It's also not a reduction of cost basis because the escrow documents don't show a reduction in cost basis.
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on October 11, 2018, 06:48:56 PM
I didn't say it was earned income.  I said it's a gift.  It's also not a reduction of cost basis because the escrow documents don't show a reduction in cost basis.


It's a reduction of cost basis, same as if the rebate went through escrow (both a non-taxable event to the buyer) since Redfin's rebates would be done outside of escrow at times.  You can trust me on this, I worked with a former IRS lawyer when I got audited.
Title: Re: Rebate on New home purchases - Discuss
Post by: Agent Joe on January 04, 2019, 09:50:15 PM
If anyone is looking to buy a new home and interested in getting the biggest rebate possible, hit me up, I will beat any agent's rebate in Irvine...guaranteed.

可以講中文
Title: Re: Rebate on New home purchases - Discuss
Post by: Mety on January 07, 2019, 03:04:21 PM
If anyone is looking to buy a new home and interested in getting the biggest rebate possible, hit me up, I will beat any agent's rebate in Irvine...guaranteed.

可以講中文

Can you beat MAX Rebate? That's gotta be like you're going to give the full amount 100% of your commission to the buyer. I surely will hit you up then.
Title: Re: Rebate on New home purchases - Discuss
Post by: Cares on January 07, 2019, 03:19:39 PM
If anyone is looking to buy a new home and interested in getting the biggest rebate possible, hit me up, I will beat any agent's rebate in Irvine...guaranteed.

可以講中文

Can you beat MAX Rebate? That's gotta be like you're going to give the full amount 100% of your commission to the buyer. I surely will hit you up then.

I'll give you 99% commission (less broker fees) if you buy me dinner with drinks!
Title: Re: Rebate on New home purchases - Discuss
Post by: irvinehomeowner on January 08, 2019, 07:20:56 AM
Is #RobinhoodRebate greater than #MaxRebate? :)
Title: Re: Rebate on New home purchases - Discuss
Post by: Kenkoko on January 08, 2019, 11:44:54 AM
I think a lot of Chinese realtors in Irvine offered splitting the broker co-op.

Things might be slower now since I am seeing a couple of Chinese realtors offering 75% rebate on FB.
Title: Re: Rebate on New home purchases - Discuss
Post by: Cares on January 08, 2019, 02:26:43 PM
I think a lot of Chinese realtors in Irvine offered splitting the broker co-op.

Things might be slower now since I am seeing a couple of Chinese realtors offering 75% rebate on FB.

I gave 50% rebate to 2 buyers that closed in December. They were my friends though so probably tough clients will ask for 75%+ or else walk to someone else who is willing.
Title: Re: Rebate on New home purchases - Discuss
Post by: Mety on January 08, 2019, 03:59:49 PM
Why only on the new homes? Can you guys give #MAXRebate or #RobinhoodRebate or #75%Rebate for resales also?



Title: Re: Rebate on New home purchases - Discuss
Post by: woodburyowner on January 08, 2019, 05:19:16 PM
Why only on the new homes? Can you guys give #MAXRebate or #RobinhoodRebate or #75%Rebate for resales also?

Work-load.  Signing up at the new sales office takes 10 minutes and then you get a big check for essentially doing nothing.  For resale there are so many other factors to getting the transaction completed.  Everything can be negotiated though.
Title: Re: Rebate on New home purchases - Discuss
Post by: Cares on January 09, 2019, 09:06:07 AM
Why only on the new homes? Can you guys give #MAXRebate or #RobinhoodRebate or #75%Rebate for resales also?

Work-load.  Signing up at the new sales office takes 10 minutes and then you get a big check for essentially doing nothing.  For resale there are so many other factors to getting the transaction completed.  Everything can be negotiated though.

Hey man! I had to drive more than 10 minutes to meet them to sign them in!
Title: Re: Rebate on New home purchases - Discuss
Post by: AW on January 09, 2019, 01:06:56 PM
Why only on the new homes? Can you guys give #MAXRebate or #RobinhoodRebate or #75%Rebate for resales also?
sure, but you'll have to do MAX work, lol
Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on January 10, 2019, 03:23:17 PM
Why only on the new homes? Can you guys give #MAXRebate or #RobinhoodRebate or #75%Rebate for resales also?

Work-load.  Signing up at the new sales office takes 10 minutes and then you get a big check for essentially doing nothing.  For resale there are so many other factors to getting the transaction completed.  Everything can be negotiated though.

+1  Less work involved in a new home purchase for an agent than a resale home purchase, but I've had situations where I had to do a lot of hand holding for newbie new home buyers where there were issues with the home (repair items).
Title: Re: Rebate on New home purchases - Discuss
Post by: think33r on April 03, 2019, 01:17:03 AM
Nightmare Scammers here in Irvine   

@RickLopez Realtor Lied to my friend and walked off with $30K

After months promising he would pay the guy just took off

stay away from this guy https://www.yelp.com/biz/richard-lopez-coldwell-banker-platinum-properties-irvine

Title: Re: Rebate on New home purchases - Discuss
Post by: USCTrojanCPA on April 03, 2019, 05:23:36 AM
Nightmare Scammers here in Irvine   

@RickLopez Realtor Lied to my friend and walked off with $30K

After months promising he would pay the guy just took off

stay away from this guy https://www.yelp.com/biz/richard-lopez-coldwell-banker-platinum-properties-irvine



Oh man, I'm sorry to hear that.  Unfortunately there will be scumbag realtors like this.  Did the agent go MIA on your friend or did he just flat out refuse to provide them the rebate?  If your friend has anything in writing (email, text, and/or agreement), they should go to the broker first and then the realtor association and then the department of real estate. 
Title: Re: Rebate on New home purchases - Discuss
Post by: Agent Joe on April 27, 2019, 10:07:00 PM
If anyone is looking to buy a new home and interested in getting the biggest rebate possible, hit me up, I will beat any agent's rebate in Irvine...guaranteed.

可以講中文

Can you beat MAX Rebate? That's gotta be like you're going to give the full amount 100% of your commission to the buyer. I surely will hit you up then.

100%? That's called getting your broker license. A realtor is another human trying to make a living just like yourself. Be nice and he might give you more.  ;)
Title: Re: Rebate on New home purchases - Discuss
Post by: Agent Joe on April 27, 2019, 10:13:44 PM
Nightmare Scammers here in Irvine   

@RickLopez Realtor Lied to my friend and walked off with $30K

After months promising he would pay the guy just took off

stay away from this guy https://www.yelp.com/biz/richard-lopez-coldwell-banker-platinum-properties-irvine

That's quite short sighted and unfortunate. Hopefully your friend has something in writing and can use that to go after him. Assuming he promised to rebate 50% ($15k). He could have easily made that back through a referral or future sale.