Rebate on New home purchases - Discuss

[meccos12]

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

 

[usctrojancpa]

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.

 

[8porkchop]

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.

 

[usctrojancpa]

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. 

 

[woodburyowner]

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?

 

[8porkchop]

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.

 

[usctrojancpa]

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.

 

[Satishleo]

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 ?

 

[eyephone]

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.

 

[maiz99]

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!

 

[eyephone]

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.

 

[usctrojancpa]

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.

 

[usctrojancpa]

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. 

 

[usctrojancpa]

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. 

 

[dream16]

Simply take a redfin agent with you to get some money back from their 3% earnings.

 

[usctrojancpa]

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). 

 

[dream16]

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?

 

[usctrojancpa]

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. 

 

[dream16]

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)

 

[Irvinehomeseeker]

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.