Is it legal for a realtor to share commission with a buyer? In this video, I discuss why most PROFESSIONAL Realtors are not willing to share their commission and how reducing a REALTOR commission could hurt you in the negotiation process.
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Can REALTOR share commission with Buyer?
The easy answer is YES, a realtor can share commission with the buyer. It is completely legal and documented as a credit on the final closing statement. With that said, most professional Real estate agents will NOT share their commission with a buyer especially before ever starting the process.
As a REALTOR, I occasionally have buyers approach me prior to ever writing an offer or doing any sort of negotiation asking me to share the realtor commission with them and honestly it comes off a bit offensive. In my eyes, these are people who don’t take my job or my skills very seriously and therefore I am a Real Estate Agent who is NOT willing to share any of my commission on the buyer side. I often think it would be similar to me going and buying something in retail or any business really and then asking them to reduce their salary to make the deal work, it makes absolutely no sense.
As a Real Estate Agent, I am Self Employed which means that I don’t make a salary and therefore the only way I make money is to help buyers and sellers with real estate. That also means that out of every realtor commission check that I receive, I don’t receive the full commission because not only do I have an office split with my Broker but I also have to pay taxes in addition to my transaction coordinator. On top of that being self employed also means that I’m responsible for my own healthcare, contributing to my own retirement and the list goes on.
With all of that said, I have given part of my real estate commission to the buyer to help with repairs and other items that have popped up during the transaction in order to put the deal together but that’s because I was willing to do it. If I had given part of the commission away up front, I wouldn’t have been in a position to do that and in some cases the deal would have likely fallen apart.
Are you considering buying a home and have questions ? If so, please contact me directly or comment below.
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