Hi friends.. first time home buyer here in bay..found few houses in my budget in 800-900k range and down of 10-15% my credit score etc is over 720 and been in us for 9 years and got ead last week. I am learning some real estate agents give .8-1% cash back on commission thus helping towards closing cost.. is this true? I was working with an agent who clearly told me he won’t give cash back and started saying he is not working for Redfin but someother firm and he will have to give 50% of commission to Redfin and he would be left with meager 8-10k hence he cannot give commission.. I am surprised as few agents told me that they can workout a deal On commission and help towards closing cost.. Any suggestions please? Tc 220k
Just my 2 cents- this is a sellers market. If your budget is 800-900k, I’d be looking at homes listed for 700+k. Real estate is so hot that homes go well above listing price. Don’t fall in love with a home and over extend your budget. In this market, the sellers agent is less important than the buyers agent. Your agent will be key to get you new homes, off market homes get your offer to the top. I’d not hassle them and take away their livelihood.
Agreed.. that’s where I am confused how come some agents are saying we will give you .8-1% of commission.. I have a house in mind which is asking 750 and I know I can get it fir 810-820 .. similar comps Shows houses in that community went 50-60k above asking..
I think it’s possible but not openly discuss because it’s illegal.
There is nothing illegal about it. You would get check from real estate agency. It will be in their books.
why is it illegal? It was literally written into my final statement
Yes they do. We got a cash back on our first house. We got our realtor through Costco- but that was many years ago :)
My agent gave 20% of her commission back. Was a nice 5-6k. She was in the east bay...
We got 1.5% of sale price back; our agent kept 1%. But we also mostly toured open houses on our own and just had him help with the offer. No clue what your agent is taking about .. if he’s not affiliated with Redfin, why would he have to give them 50%. I think he’s full of shit maybe?
It’s not enough to worry about Just get a house a move on
I went with unlocked. They give 2 percent back. I was able to buy in this crazy market and loved their service. Check out their reviews. They don't help you in finding listings but with redfin who needs that. I would only pay a broker if they help with off market listing.
Bought a house 2 years ago. I told my agent that Redfin was offering $5000 back to me if I used them as a buyers agent. My agent offered to match that if I used him to write the offer instead. It was all legit, written into the offer letter. Ended up using him and getting the refund, no issues.
Make seller agent your agent if you can. Pay full commission, but he'll likely keep you in the loop and give you second chance to bid so you don't have to overbid too much up front. It's the only way commission is worth it for the buyer.
No idea what this means
It means search for homes you like on Redfin, then contact the seller's agent to show you the house. Tell the seller's agent you do not have a buyer's agent, and they will gladly work with you and give you information about other bids they receive come offer time. If they make a deal with you, they get to pocket the 2.5% buyer's agent commission as well. Agents are incentivized to maximize their commission only. Unfortunately, thats just how they've set up the game and their compensation structure.
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Just interview multiple agents.
Doing it.. but question still Remains does anyone know if this is true that agents give commission back or just a gimmick to get my business
It's true. Get it in writing. I got 50% back from my agent.