Friday, June 7, 2013

Will you list my house for "free" if I buy my next house from you?

This does not occur very often, at least in my business.  Consider a seller who asks prospective listing agents if they will sell their home for free if they buy from them later.

First point... real estate commissions are negotiable.  They are set by the parties to the transaction i.e., seller and listing brokerage.

An understanding of the way real estate agents are paid is important to this discussion.  Sellers are charged a commission (usually a percentage of the final selling price) for the marketing and successful selling of their house/condo.  The fee is split with the buyer's agent.  Key point:  buyers do not pay their real estate agent.

Now the question of listing a home for free?  My initial response will be "How is the buyer's agent going to be compensated?"  (See above paragraph.)

List for free? Nope.

As for the second part of the question "if they buy from the agent later."

As mentioned above all real estate fees are negotiable.  This is allowed under Florida real estate regulations for a real estate agent to rebate some of the commission received to a party to the transaction (with fill disclosure to all parties and on HUD closing statement).

My response?  Let's sell your house first.

And, if down the road you purchase a new home or condo using me as your real estate agent, I will consider possibly rebating a portion of the commission earned upon closing with full disclosure to all parties as well as being reported on closing statement.

Ready to sell your Brevard County, Florida home?  Call me and lets discuss how I can work for you.