Commission Rebate Google Search ?’s Answered
A real estate commission rebate is when a participating broker of a transaction shares their commission with a buyer and or seller to that transaction.
Technically no. An agent works for a sponsoring broker and that broker has to authorize the commission rebate discount in order for an agent to advertise, endorse and deliver the rebate. In the event you are working with an agent that offers you a discount you should check to see that agent has the authority to offer & standby whatever commission discount is offered.
This question is tricky. In essence the sellers of most listed properties offer to pay cooperating brokers who represent buyers a commission. This commission is reduced out of the sellers proceeds at closing. The monies to pay the buyers broker while channeled thru sellers expenses is technically the money buyers used to fund the entire deal. Based on this information I would say buyers are the ones who technically pay ALL of the real estate commissions within a sale.
Most real estate agents will tell you the opposite; they will state the seller pays the fee and that’s that. Who pays a buyers broker who collects a full 3% fee is not a topic most buyers agents / brokers care to discuss or elaborate on.
Using a service like ours where we rebate you most of the commission is becoming more and more common. But buyer beware… Most discount real estate brokerage services & these new tech-driven startup companies employ new or less than impressive agents who could’t cut it in the free market real estate sales arena.
Now this question states “Do I HAVE to pay a buyers agent commission” and the simple answer is #NO subject to prearranged written agreements.
Buyer commission rebates can be collected on or off the closing statement and can be used to lower your cash to close, mortgage closing fees & in some cases a reduction to the final purchase price you pay.
All real estate deals are owned by the broker. If you are dealing with a typical real estate agent who works for a company like Re/Max, Keller Williams etc etc chances are they need to secure authorization from their broker before being able to deliver any commission discount.
Sellers can collect commission rebates just like buyers. Most times sellers accept commission rebates as a standard commission discount & simply pay a lower fee to sell their properties.
Ask an accountant is my official answer.
That said here is an IRS Archive Letter that states commission rebates are not taxable and are viewed as an overall reduction in a properties purchase price.
Most home buyer commission rebates are credited to the buyer right on the closing statement. On both the HUD & Alta closing statement there are sections dedicated to monies owed to a buyer. These monies typically include property tax proration credits, lender credits, miscellaneous credits and real estate broker commission credits to buyer.
A rebate in real estate occurs when a party to a sale (buyer & / or seller) receive a portion of the commission from their broker within a specific property sale.
Technically no. An agent works for a sponsoring broker and that broker has to authorize the commission rebate discount in order for an agent to advertise, endorse and deliver the rebate. In the event you are working with an agent that offers you a discount you should check to see that agent has the authority to offer & standby whatever commission discount is offered.
Realtors can give commission rebates just like any other licensee as long as their broker authorizes the discount.
Realtors are trade organization designated to protect the best interest of real estate agents & brokers. In short it’s an organization that helps protect the 6% commission practice.
Real estate agents can assist paying closing cost by sharing & using some of their commission to cover these expenses for their customer. Any agent offering a commission discount MUST have permission from their sponsoring broker to offer & deliver the commission discount.
Yes. Real estate is the ultimate negotiation sport; real estate fees and commissions included.
A real estate commission rebate agreement can be as simple as a verbal agreement that makes it to the closing statement. Considering the amount of money at hand it’s prudent to get something in writing that is endorsed by a broker spelling out the terms of your rebate.
There really isn’t a real estate rebate program; just service providers like Str8 R.E. Co. who offer & deliver real estate commission discounts, rebates, flat fee & other commission cost reducing methods.
Technically no. An agent works for a sponsoring broker and that broker has to authorize the commission rebate discount in order for an agent to advertise, endorse and deliver the rebate. In the event you are working with an agent that offers you a discount you should check to see that agent has the authority to offer & standby whatever commission discount is offered.
Realtors can assist paying closing cost by sharing & using some of their commission to cover these expenses for their customer. Any Realtor offering a commission discount MUST have permission from their sponsoring broker to offer & deliver the commission discount at closing.
if you are working with a Realtor, agent or broker who is offering you a commission discount be sure they have permission to deliver the discount from their broker. We suggest getting your commission rebate arrangement in writing before getting into contract especially if you are working with someone who doesn’t advertise, specialize in rebate or discount commission services.
Chances are if you are seeking a reduced commission from your broker you are not using the word rebate. Simply inquire about a commission fee reduction or a credit at closing that comes from the commission in your real estate deal. If you are not dealing with a broker who actively offers a discount service we suggest you make your inquiry for a commission rebate / fee discount just prior to signing a contract and launching a negotiation.
If you are buying Florida property the best answer is to simply use Str8 ReaL estate Company’s 80% commission rebate.
Our commission rebate service is awesome, covers all of Florida commercial & residential properties.
Commission rebates may also be referred to as a commission kickback. Kickbacks are only available to be shared with a buying & selling party within the same transaction & legally must be disclosed to all participants in that sale.
