Realtor to contribute 2 % of his comission to our deal..

[NA NA]

Can a realtor include part of his commission to our deal in escrow?

I like to look at houses but REALTORS are so '' busy'' to show them and after 2nd house they show you its too much trouble for them.

I find a nice house alone and got a choice to call my best friend who is a Realtor and beg him to show it to me and he will make 3 % for few minutes of his time or call the listing agent and let him make 6% .

I think is better idea just to ask the listing agent to contribute 1-2 % to the escrow.
He make a lot bigger check and i am awarded for finding the property alone and call him for sure deal.

Few days ago i find a good deal and decided to ask the listing agent to contribute 2 k to the deal.

His immediate answer was- NO,this is illegal.
My responce was i am not asking for money under the table but LEGALLY disclosed in contract and escrow condition.
He kept saying is highly illegal to which i answer cant be because i watched a show on HGTV were in House Hunters the REALTOR contribute 5 k from his commission to the closing cost.

I understand he is fighting to keep the whole 6 % but telling me a lie he lost it all.

Is it legal or no ?

What creative ways you guys use to get help in closing cost in closing?

[Joel Owens]

It's hard to help when I do not even know what COUNTRY you are in.

I assume by REALTOR you are in the United States.

WHERE ARE YOU?? What state??

The reason this matters is because (buyer rebates) are not legal in all states.So the broker/agent might actually be telling the truth to you depending on the state.

The other item you are not thinking of is whether the listing rep is a head broker or just an associate broker or agent.If they are not the head broker then they have a split agreement with the head broker and do not receive that big commission as you state.

The head broker even if the state allows rebates might have in their independant contractor agreement agents sign that they are not allowed to do rebates.

Another fallacy is you think an REO broker gets 6% if they make both sides.This is not true.Most asset management companies and banks that assign REO listings to sell pay out 5% and make the listing broker stick 3% on the buyer agent side and 2% on the listing side.

They also hit the listing agent with computer platform fees and maintaining BS designations that can run hundreds to almost 1,000 dollars a year for one company.All of that is taken out before even a broker split.

So you are definitely misguided in your belief.

The hard fact is that because the REO brokers list for so little price and the commission percent is low they need to double end to make coin.They won't say this publicly but it is true.

This is why REO brokers have buyers list they notify when they have a property in pre-list that hasn't hit the market.Heck I am a head broker and I tell them they can have ALL the commission because I want the deal.

So I think you are going about this all wrong and you will lose out on a lot of deals with your thought process.

I hope you take what I say to heart as it will help you land more deals.

Good Luck