What about commision and % back to buyer in this market?

[awgee_IHB]

Let's say I am the buyer and you, the seller, and I are $20,000 or $30,000 or whatever away from closing. I just say to my agent, "That is as far as I am willing to go. What can you and the other agent bring?"

IR2 - Help me out. The last home we sold was contracted for 5% and I didn't have to say anything, because when our listing agent saw the deal was floating away, she made it happen. But then, we picked her for a reason, didn't we?

 

[tenmagnet_IHB]

Why wouldn't I have your best interest in mind? Hello, I'm a realtor that has taken and oath to represent my buyers with passion and vigor. So what if I don't do it on a full-time basis, I'm glad I don't or I'd be going hungry now. Believe me, 99% of realtors today would love to be making the living that I make in my full-time job. haha I don't handle more than 1-2 buyers at one time so I can make sure I give them the time and service that they need. If you still doubt my skills, you could always call my buyers and ask them on how satisfied they were with my service and skills.

I like your approach and have no problem with the way you do business.

Truth is, I worked with quite a few buyers agents and they kept trying to pigeon hole me into homes exactly in my price range rather than even making an attempt to aggressively negotiate asking prices down to my price range.

In March, I met this guy at Equinox who like yourself, has a license but was not a full-time agent.

His primary income is derived elsewhere.

Since I’m decisive and know what I’m looking for, he offered to kick back a substantial portion of his commission.

We're working together and I couldn't be more pleased.

When you’re lined up in the “red zone” you need that “goto” someone who can punch it in.

I feel like this guy has that, and contrary to what people think, I like the fact that I may be his only client.

I want the focus to be on my objectives and me.

 

[Johnny Fever_IHB]

awgee

BTW, is that legal? B/c ultimately you are kicking back $$ to the seller right? Lowering the price artificially..right?

Maybe Im not catching on but when I pitched it to a friend...a red flag popped up...

JF

 

[usctrojanman29_IHB]

A friendly word of advice, trojanman:

I wouldn't lead your marketing pitch with the "I do this on the side" line. And I wouldn't tell people that I don't need my realtor commissions because I make so much money doing something else. If you got your realtor's license to help friends and family, that's one thing. But if you are out pitching strangers for business, both of these things imply that you are dabbling in something easy to make some extra cash. If you have a full time job, how are you going to compete with a professional full-time realtor in terms of continuing education, market analysis and commitment to the profession? If you do this on the side, are you fully insured? Are you going to be available on short notice during regular business hours? If things get really tough and time consuming, are you going to bail out because this isn't your job and you don't need the money? And how do you find the time to effectively represent your clients -- are you double dipping at your other job (which might say something about your ethics)? I'm not saying that any of the above applies to you -- as you pointed out, nobody here knows you. I'm just saying that's the red flag I see when someone says "I'll cut you a good deal because I do this on the side and I don't need the money."

Points well made and taken. I'm happy to help anyone out who needs it and have been taught that real estate should be a win-win situation all the way around plus I'm a big believer of good karma. One of the reasons why I became a realtor was because of the first hand experience of how incompotent and worthless most realtors really are because their judgement is clouded by the old mighty dollar. I really which the state would step up and require stricter standards for people who want to get their RE license becuase any monkey can get one today. Again, don't be fooled into thinking that a realtor work harder for you because he's getting a bigger commission because it will only cloud his/her judgement that much more.

 

[usctrojanman29_IHB]

Nothing wrong with that, I got my undergrad degree from UCLA. I'm actually a BROJAN...shhhh

How unfortunate!

I was going to invite you and some of the other SC alums on this board down to the Peninsula next month.

We’re going to be racing my dad’s boat “The Sweet Life” in the annual regatta hosted by the Newport Beach Yacht Club.

So no credit for seeing the light eventually? haha That event sounds like a blast, are you an active alum in terms of going to alumni events in OC and LA?

 

[Newport Trojan_IHB]

Nothing wrong with that, I got my undergrad degree from UCLA. I'm actually a BROJAN...shhhh

How unfortunate!

I was going to invite you and some of the other SC alums on this board down to the Peninsula next month.

We’re going to be racing my dad’s boat “The Sweet Life” in the annual regatta hosted by the Newport Beach Yacht Club.

So no credit for seeing the light eventually? haha That event sounds like a blast, are you an active alum in terms of going to alumni events in OC and LA?

Sorry, but I am afraid you're tainted by powder blue and the 8 clap cheer! hahaha

 

[usctrojanman29_IHB]

Why wouldn't I have your best interest in mind? Hello, I'm a realtor that has taken and oath to represent my buyers with passion and vigor. So what if I don't do it on a full-time basis, I'm glad I don't or I'd be going hungry now. Believe me, 99% of realtors today would love to be making the living that I make in my full-time job. haha I don't handle more than 1-2 buyers at one time so I can make sure I give them the time and service that they need. If you still doubt my skills, you could always call my buyers and ask them on how satisfied they were with my service and skills.

I like your approach and have no problem with the way you do business.

Truth is, I worked with quite a few buyers agents and they kept trying to pigeon hole me into homes exactly in my price range rather than even making an attempt to aggressively negotiate asking prices down to my price range.

In March, I met this guy at Equinox who like yourself, has a license but was not a full-time agent.

His primary income is derived elsewhere.

Since I’m decisive and know what I’m looking for, he offered to kick back a substantial portion of his commission.

We're working together and I couldn't be more pleased.

When you’re lined up in the “red zone” you need that “goto” someone who can punch it in.

I feel like this guy has that, and contrary to what people think, I like the fact that I may be his only client.

I want the focus to be on my objectives and me.

That's exactly what I'm talking about, that guy doesn't let the commission cloud his judgement and push you into just anything so he can get paid. People just don't seem to understand that the incentive structure for RE agents is broken and causes the agents to have an agenda that most of the time doesn't match up to yours. I negotiate for a living with very savy real estate developers/investors so I think I can handle dealing with a realtard any second of the day. haha I understand that business is all about relationships and that you are only as good as your last transaction.

 

[usctrojanman29_IHB]

awgee

BTW, is that legal? B/c ultimately you are kicking back $$ to the seller right? Lowering the price artificially..right?

Maybe Im not catching on but when I pitched it to a friend...a red flag popped up...

JF

As long as everyone is done through escrow and the broker signs offs off on it, you are golden. You just have to make sure that if you are dealing with a bank on a short sale or foreclosure, as well as your lender, that it's kosher with them. It's when there are monies exchanged outside of escrow that people will get in serious trouble with the DRE.

 

[usctrojanman29_IHB]

Nothing wrong with that, I got my undergrad degree from UCLA. I'm actually a BROJAN...shhhh

How unfortunate!

I was going to invite you and some of the other SC alums on this board down to the Peninsula next month.

We’re going to be racing my dad’s boat “The Sweet Life” in the annual regatta hosted by the Newport Beach Yacht Club.

So no credit for seeing the light eventually? haha That event sounds like a blast, are you an active alum in terms of going to alumni events in OC and LA?

Sorry, but I am afraid you're tainted by powder blue and the 8 clap cheer! hahaha

lol I still cheer on for both teams, but pull for the Trojans when they play against each other.

 

[graphrix_IHB]

All I know is IR2 has never really pitched his services, and saying you can "PM me if you want" keeps it private. I respect that, and I warned him a long time ago if he started pimping his services he wouldn't have to worry about me attacking him, because everyone else would chew him up like some starving Piranhas. I also have met IR2, and I stand behind his services and who he is as a person, with not only a RE license but a MBA as well. I am the last person to recommend using a Realtor, full time or part time, but if anyone deserves my recommendation it is IR2. He has been very helpful to many here in public and in private, and he has contributed to the forums in numerous ways that only a agent can. He didn't have to do that, and he risks major backlash in is industry for feeding the bears. He knows his market share inside and out, and has a photographic memory that is only bested by BK.

I can go on, but I think you all get my point. I know who I would trust in handling my RE transactions, and I can call him from 9-5.

BTW, he isn't hungry either. Gym membership bro, hit the 24hour at the spectrum, that is where Ten meets all the hotties. Oops, er nevermind... I met his wife and she is hot, so check out the dumpy 24 on Irvine Blvd. and Newport by the Ralphs, less hottness there.

 

[usctrojanman29_IHB]

All I know is IR2 has never really pitched his services, and saying you can "PM me if you want" keeps it private. I respect that, and I warned him a long time ago if he started pimping his services he wouldn't have to worry about me attacking him, because everyone else would chew him up like some starving Piranhas. I also have met IR2, and I stand behind his services and who he is as a person, with not only a RE license but a MBA as well. I am the last person to recommend using a Realtor, full time or part time, but if anyone deserves my recommendation it is IR2. He has been very helpful to many here in public and in private, and he has contributed to the forums in numerous ways that only a agent can. He didn't have to do that, and he risks major backlash in is industry for feeding the bears. He knows his market share inside and out, and has a photographic memory that is only bested by BK.

I can go on, but I think you all get my point. I know who I would trust in handling my RE transactions, and I can call him from 9-5.

BTW, he isn't hungry either. Gym membership bro, hit the 24hour at the spectrum, that is where Ten meets all the hotties. Oops, er nevermind... I met his wife and she is hot, so check out the dumpy 24 on Irvine Blvd. and Newport by the Ralphs, less hottness there.

I understand that he's been around here longer than I have, but he was a little out of line with his sarcastic comments especially when he doesn't know me. If I somehow solicited business or was out of line with IR2, I apologize because that was not my intent. I'm more than happy to help anyone out who asks for it, whether it means me making some commission or not. It's all about good karma.

Hmmm, I actually hit up the 24 by South Coast Plaza but maybe I should consider going to the one at the spectrum to check out all of the talent. haha

 

[reason_IHB]

"He who speaks without modesty will find it difficult to make his words good."

 

[IrvineRealtor_IHB]

Let's say I am the buyer and you, the seller, and I are $20,000 or $30,000 or whatever away from closing. I just say to my agent, "That is as far as I am willing to go. What can you and the other agent bring?"

IR2 - Help me out. The last home we sold was contracted for 5% and I didn't have to say anything, because when our listing agent saw the deal was floating away, she made it happen. But then, we picked her for a reason, didn't we?

usctrojanman - I apologize for the harsh criticism in my post above. Your pitch seemed inconsistent and I think you'll agree if you re-read it. The fact that it was purely "pitch" was what I found most bothersome.

OP - You still need to take a look at your motivation in purchasing a home now. A bun in the oven will need lots of diapers in the future. And clothes. And food. And a good amount in savings when he/she tells you it's time to go Ivy League. Take a good look at the equity burn numbers available all over this blog. How will "saving" 2% benefit you if your home is worth 3% less in 2 months? That is not a rhetorical question. If you need help in putting in context "real life" take your wife to the Court House in Santa Ana some day and watch as the Trustee's sales take place. It might not set in at first, but at the 10th, 30th, or 50th parcel comes up, it will dawn on you that each of these was purchased with the best of intentions in a rising market and that each is/was someone's home.

awgee - Very long day, sorry for the delay. This may help sum it up. I'll also include this link so you can monkey around with your own numbers in a live sheet. I am 100% certain you (awgee) know this already but I get the sense that maybe you're asking for this explanation from a second source in order to help clarify for others. No problem.

 

[usctrojanman29_IHB]

Let's say I am the buyer and you, the seller, and I are $20,000 or $30,000 or whatever away from closing. I just say to my agent, "That is as far as I am willing to go. What can you and the other agent bring?"

IR2 - Help me out. The last home we sold was contracted for 5% and I didn't have to say anything, because when our listing agent saw the deal was floating away, she made it happen. But then, we picked her for a reason, didn't we?

usctrojanman - I apologize for the harsh criticism in my post above. Your pitch seemed inconsistent and I think you'll agree if you re-read it. The fact that it was purely "pitch" was what I found most bothersome.

No harm, no fool. I probably should have worded my response to the OP a little more carefully. Nice analysis...I couldn't have done it better myself. Btw, where'd you pick your MBA from?

 

[awgee_IHB]

Thanks IR2

Johnny - I am talking about scenario 2 per IR2s scenarios.

And I am sorry, but I am unclear as to why you thought anything I suggested was sketchy. It is just the opposite. You make your offer. And after the counters, you and seller aren't meeting on a price, you suggest to your agent that the agents renegotiate the commission with the seller. There is nothing sketchy or unethical or cloudy about this. USCtrojanman seems to think that the listing agent will balk, but my experience is that the buyer did not even have to suggest and the our listing agent made the suggestion herself.

In your initial scenario, the buyer's agent is getting paid by the seller and then kicking back some of the commission to the buyer who has made a contract to pay the seller a certain amount. The buyer is getting paid back some of the money the buyer is contracted to pay, and maybe undermining the seller's contract with the agent.

To avoid all the circularity and kickbacks, let the seller renegotiate their contract.

And make your bottom line offer knowing all this and let the cards fall where they may.

 

[EvaLSeraphim_IHB]

OP - You still need to take a look at your motivation in purchasing a home now. A bun in the oven will need lots of diapers in the future. And clothes. And food. And a good amount in savings when he/she tells you it’s time to go Ivy League. Take a good look at the equity burn numbers available all over this blog. How will “saving” 2% benefit you if your home is worth 3% less in 2 months? That is not a rhetorical question. If you need help in putting in context “real life” take your wife to the Court House in Santa Ana some day and watch as the Trustee’s sales take place. It might not set in at first, but at the 10th, 30th, or 50th parcel comes up, it will dawn on you that each of these was purchased with the best of intentions in a rising market and that each is/was someone’s home.

And sign up for a Foreclosure Radar free trial and show her all the pretty pins showing NODs, NTSs, and REOs in your chosen 'hood. Repeat as needed.

IR2 - Thanks for the spreadsheet! I think it will be very helpful.

 

[stepping_up_IHB]

We were looking at a Wells Fargo owned property and they were offering a 1% bonus to the buyer's agent. Our agent figured she was only going to get half that, so she negotiated taking that 1% off the purchase price. Didn't do us much good because the bank was stubborn on the price and ultimately they opted to not even counter and just flat out reject our offer.

 

[IrvineRealtor_IHB]

awgee - I'm guessing that using the vernacular of "kickback" is what throws up the red flags, especially with the Tax Man.

(Not to be confused with the Tan Man nor the Ten Man.)

It is a common practice, though, and legitimate by any standard. Redfin's advertizing offers 2/3rds of their commission back to the buyer and issues a 1099 so that the company is not taxed on income they've never actualized.

brojan - I posted my info previously, but I won't hit you with a "use the search function" reply. I spent two years at UCI, and when they dropped the baseball program they dropped me. I headed to the "other" SC (go Broncos!) to finish undergrad work and keep playing ball. Worked to earn my MBA at SDSU in project mgmt.

 

[stepping_up_IHB]

I forget which Federal Department it is, but one of them encourages agents to share the comm with the buyers and sellers because they said it makes the market more competitive. We had listing agent represent us as buyers and she turned out to be just awful. I told her that if we wanted such unprofessional and poor representation that we would have had my friend with her broker's license but few brain cells work with us and give us 50% of her comm. She then told me that was illegal, so I sent her the link to whichever govt organization it was. Commerce? She didn't respond.

 

[Johnny Fever_IHB]

awgee,IR2,

Great spreadsheet!

Now...getting the agents to negotiate on the commision. How hard is that? What Ive heard from a 'full service'(wtf) realtor that we have contacted is that she doesnt do any discounts b/c she want s to uphold her reputation(ie not be known as a discount broker)...WTF! Hmmm. Lets see here, I found the house, know about the property and the prior mortgages...now she wants 3%. Not sure what to say but my wife really likes her(personally I havent even spoken to her).

Makes me want to do this myself but I lack the experience and know how. First house, remember....

-JF