Sharing broker co-op with buyer typical?

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Paris167

Paris167

New member
So we bought new construction, took a broker the first time and broker got a co - op. Is it typical and known that they usually give some of that back to the buyer?

There was never an agreement prior but of course the agent didn't bring it up. We don't have experience with new construction to have asked prior. But talking to others that took a broker, they got a kick back from the co-op, some buyers got 50%!

Is it too late to go back to the broker and ask after close of escrow? I mean the agent didn't do anything except show up at the 1st model walk in and sign some paper.
 
You need to have an agreement with your agent upfront. You can ask, but he does not have to give you a dime. Good luck

 
It is not well known or typical that agents will provide a commission report, it depends on the agent.  Typically you want to come to an understanding up front with the agent on receiving a rebate of part of the broker co-op commission when purchasing a new home.  With most clients I have a verbal agreement (my word is as good as gold) and with some I provide them a written agreement to reassure them.  Good luck.
 
That is unfortunate to hear Paris.  There is thread on TI that is pinned on top as new construction broker rebates are becoming common now. http://www.talkirvine.com/index.php/topic,2690.msg40106.html

As others have noted, try talking to your agent but they don't have to give anything.

There are a few brokers I know that take as little as $1000 and give rest back.  You can mention that you aren't asking for as much as others are giving and just want to be fair and do what is becoming common practice.  Have you recommended that broker to other family members?  If so, remind them of that. 

How much are you hoping to get back?  And whats your relationship to them?  Friends? Family?
 
test said:
Your should follow your broker home and get your marine husband to shoot him
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Test- lame

Paris-- depending on your agent, it will be difficult to get the money back.  Let him know you're an active TI poster and when you post kind words about how he/she dealt with the situation, they'll earn lots of new business.
 
"you done messed up, A-Aron!"


One of the best Key & Peele videos ever. 
Fortunately, I do not run into many A-Aron's or De-Nice's.  Otherwise, I would get into all kinds of trouble.
 
Sorry to hear of your experience Paris.
I purchased new construction a few years ago and didn't know about the new home rebate that some agents offer to their buyers.  Our agent didn't offer us any rebate but she was pretty excellent from start to finish and was with us every step of the way.  I had tons of questions as a new home buyer and she made me feel very comfortable with the entire process.  The home we bought was the first and only property we looked at so I'm sure it was a very easy process on her end as well.  She did give us some hefty gift cards as a thank you to us.  Sure it wasn't worth $8000 but it was a nice gesture at least.  I do think you do get what you pay for so the agents that split the commission will most likely sign you in and peace on out.  It sucks that your agent wasn't even that helpful to begin with.  I guess it doesn't hurt to at least bring up the rebate with your agent.
 
Paris said:
So we bought new construction, took a broker the first time and broker got a co - op. Is it typical and known that they usually give some of that back to the buyer?
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Did the broker take you there or did you take the broker there?

If it's the latter, they should understand that some percentage should go to you because you basically referred them.
There was never an agreement prior but of course the agent didn't bring it up. We don't have experience with new construction to have asked prior. But talking to others that took a broker, they got a kick back from the co-op, some buyers got 50%!
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I have worse news. I believe the two realtors on TI give you back more than 50% on new home co-ops.
Is it too late to go back to the broker and ask after close of escrow? I mean the agent didn't do anything except show up at the 1st model walk in and sign some paper.
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It wouldn't hurt to ask. Has this broker been showing you many resale homes? Did they sell your previous home?

If I've been working with a broker and they've shown me a number of resale homes and then I end up buying new, I do feel that broker deserves a portion of that co-op even if they just sign a referral paper because of the work/time they've done touring with me on the resale homes.

On the other side, if my only interaction with them is to walk in with me to see a model home for the first time, I would have some expectation of a "rebate" of that  co-op.
 
southbay2irvine said:
  I do think you do get what you pay for so the agents that split the commission will most likely sign you in and peace on out. 
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There are some agents out there that provide full service and still provide rebates on both the buy side (both new homes and resales) and on the sell side, especially when their broker doesn't take 20-30% of the gross commission right off the top.  ;)
 
That's going to be a conversation worth hearing. My guess is that the outstretched hand will be gently pushed back with "It's a RESPA violation" (it's not BTW) or "My Broker doesn't allow it" (also fiction). I'll be amazed if the realtor burps up anything more than a $100 PF Chang / YogurtLand gift card post closing.

Some Agents are great about post closing gratuities. "Some" however is not "All". The takeaway at this point: Try a TI Agent first - WYSIWYG. They have set a standard other realtors may someday rise to.
 
It's because you can talk shit about them on here if they mess up.  Keeps them on their toes.  Same goes for mortgage brokers.
 
zubs said:
It's because you can talk shit about them on here if they mess up.  Keeps them on their toes.  Same goes for mortgage brokers.
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Yeah, this forum is a great self check mechanism for realtors and loan officers.  But then again, in any type of sales job you are only as good as your last deal.  You can have a 100 great transactions but if you F-up on the 101st then all of the goodwill that you worked so hard for goes right up in smoke.  As Gordon Gekko said to Buddy Fox in Wallstreet...."You've done good, but you gotta keep doing good." 
 
Soylent Green Is People said:
That's going to be a conversation worth hearing. My guess is that the outstretched hand will be gently pushed back with "It's a RESPA violation" (it's not BTW) or "My Broker doesn't allow it" (also fiction). I'll be amazed if the realtor burps up anything more than a $100 PF Chang / YogurtLand gift card post closing.

Some Agents are great about post closing gratuities. "Some" however is not "All". The takeaway at this point: Try a TI Agent first - WYSIWYG. They have set a standard other realtors may someday rise to.
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Or maybe they'll say that they can't violate the terms of the builder's broker co-op agreement which says the agent can't give rebates in or outside of escrow.  That's ok, I think I'll decide what I want to do with the broker co-op commission myself.  hahaha
 
So I brought it up with my realtor. I know several people who bought in OH that are getting a part of the broker co-op personally so I told them that.

And of course they sounded so shocked! They've never heard of brokers giving rebates on the co-op ever and they do so many new construction sales  ::)

And then it went into a sob story about how a large chunk of it is taken by the brokerage firm blah blah.

At the end of the day I said check with some of their irvine agents and get back to me because this is a common practice in Irvine. I know I won't get anything back, expensive lesson learned I guess. Very annoying though - the co-op is $15k so by the time you factor in taxes and brokerage fees I guess it wouldn't come out to much but money is money.

I'm just obviously feeling like I got the short end of the stick  :-\
 
Paris - sorry to hear you didn't get a piece of the pie. (Commission) That being said I don't see any fault of the agent.
 
Paris said:
So I brought it up with my realtor. I know several people who bought in OH that are getting a part of the broker co-op personally so I told them that.

And of course they sounded so shocked! They've never heard of brokers giving rebates on the co-op ever and they do so many new construction sales  ::)

And then it went into a sob story about how a large chunk of it is taken by the brokerage firm blah blah.

At the end of the day I said check with some of their irvine agents and get back to me because this is a common practice in Irvine. I know I won't get anything back, expensive lesson learned I guess. Very annoying though - the co-op is $15k so by the time you factor in taxes and brokerage fees I guess it wouldn't come out to much but money is money.

I'm just obviously feeling like I got the short end of the stick  :-\
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Keep in mind that the rebate to the client is not taxable to the client or the realtor (it's a reduction of cost basis in the home).  It is true that agents who work at larger national brokerages (e.g. Prudential, Coldwell, ReMax, etc) do have to pay 20-30% of the gross commission to their brokerage right off the top.  Other agents like me work for smaller brokerages that charge a fixed transaction fee per closing.  Most new home buyers don't know about the broker co-ops and that there are agents that rebate a portion of the commission, it's not like homebuilders advertise the broker co-op to perspective buyers and most agents don't do commission rebates so don't blame yourself.  At the end, you should enjoy the new home that you purchased.  :)
 
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