Kris Swierz, Because Everyone Loves Real Estate (Agency One)

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Rainmaker
4,069,283
Dorie Dillard CRS GRI ABR
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Ask her if she discounts her pay check? This is how you make a living and why would you discount the service just because someone else places so little value in their services.

Oct 09, 2016 09:07 AM
Ambassador
1,334,029
Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

That's not a Buyer but a manipulator!  I'd tell them to go jump and fast.  They have the right to ask but you have the right to say NO.

Oct 09, 2016 09:01 AM
Rainmaker
3,725,459
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

First of all, kick-backs as you put it are not legal. Beyond that, the answer would be no. Our buyer agency agreements state the amount of commission I will earn on the transaction either in a fixed fee or as a percent of the purchase price. It's a contractual agreement.

Oct 09, 2016 09:16 AM
Ambassador
5,035,934
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I would tell them that "I am a real professional and do not need to pay kickbacks to get business, do you want to work with a professional or someone who is less than trustworthy and will likely sell you out as fast as he sold out his own commission".

Oct 09, 2016 09:09 AM
Rainmaker
1,120,222
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Nordstrom Never Panics When Kmart Has A Sale! I'd let her know her friend broke the law and that I appreciate people that want a deal and some agents discount their fess, because in the abscence of skills, that's all they can do. "I can tell you I don't have money to offer you. But what I do have are a very particular set of skillsskills I have acquired over a very long career.Skills that make me a nightmare for people trying to negotiate my commission away. If you let my commission go now, that'll be the end of it." 

Oct 10, 2016 12:04 AM
Rainer
187,002
Raj Taj
RE/MAX - Lake Bluff, IL
Drive By Blessings!

Always remember that you're a professional...not a "eager to make a deal" prostitute.

Oct 09, 2016 05:07 PM
Ambassador
3,939,071
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

"I'm sorry, this is my full-time business; I am not a discount, Wal-Mart REALTOR® and I'm curious what part of the Due Diligence/inspection/ negotiation/Closing process your friend's discount broker doesn't help his/her clients through?"

Oct 09, 2016 04:06 PM
Ambassador
2,523,326
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     Only you can make that decision.  If you choose to do a Buyer Rebate (legal in my state of Florida), you need to disclose to all parties, including the lender, on the CD or HUD-1.

Oct 09, 2016 09:42 AM
Rainmaker
3,830,605
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

And why didn't you use your friend's agent?

(this issue really needs to be addressed at the initial meeting with a buyer).

Oct 09, 2016 10:06 PM
Rainmaker
1,702,087
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

I'd say no. 

Oct 09, 2016 08:45 PM
Rainer
116,440
Althea Kippes, Esq.
A.T. Kippes, Real Estate Broker - San Francisco, CA
Serving San Francisco to Silicon Valley!

You have to prepare for this at your first buyer consultation meeting by explaining that the seller pays the commission, and that the seller pays you for bringing the seller a buyer.  I also say that commission is what I get only when I get results and is what I get instead of a regular paycheck.  I explain more, but when I end this aspect of the discussion, I say something like "So, as a buyer, what the seller pays me in commission has nothing to do with you, and and you are not paying commission."

You should also use a buyer's agreement if you are going to work with buyers, and this should also be explained during the consultation.

Oct 09, 2016 06:35 PM
Rainmaker
288,788
Allie Angeloni
Long Realty - Oro Valley, AZ

Dorie Dillard, Nina Hollander, and Jill Murty, Realtor - Orange County, CA have my answer - I could not give a better comment than they already have Kris Swierz.  Good Luck on whatever you decide to do. 

Oct 09, 2016 03:58 PM
Rainmaker
389,264
Jill Murty, Realtor - Orange County, CA
Sunset Properties, Powered by Movoto - Laguna Niguel, CA

Just say NO.  

Your buyer's friend's agent is weak and doesn't even believe in his or her own value. They'll be a weak negotiator and representative.

Your buyer wants the quality representation you have to offer, but at a discount price.  This is a business and it must be treated as such.

Respectfully decline the buyer's offer to reach into your wallet. 

Oct 09, 2016 03:25 PM
Rainmaker
2,433,224
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Silly buyer. my answer would be no. I know what I am worth.

Oct 09, 2016 11:52 AM
Ambassador
3,986,094
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I would say I cannot speak for what other agents do or the service they provide but I know I am a professional and worth what I make.

Oct 09, 2016 11:30 AM
Ambassador
4,391,712
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

No, I'm sorry I do not work that way. Dorie Dillard has a great response

Oct 09, 2016 09:58 AM
Rainmaker
3,854,185
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Some managing brokers may allow it and some may not! What is the sales price? What percentage of your side of the commission does it represent? What does she do for a living and does she normally offer such gracious discounts to her customers?

If you decide to do it, disclose it to all parties to the contract! 

Oct 09, 2016 09:02 AM
Rainmaker
3,265,079
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Kick backs are illegal. In NH we can only gove a buyer or seller $50 bucks. That is it 

Oct 09, 2016 11:39 PM
Rainmaker
1,610,441
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Like Nancy Regan always said; Just say No!

Oct 09, 2016 10:35 PM
Rainmaker
1,922,443
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I thought that Wayne Martin had a very good answer - this is a great debate topic

Oct 09, 2016 01:11 PM
Rainmaker
3,985,753
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Agents that do that cuts our throats and theirs.

We need to reman Professional and not lower our Professional

Oct 09, 2016 11:35 AM
Ambassador
1,706,936
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Turn the other agent in for an illegal inducement.

Oct 09, 2016 08:51 AM
Rainmaker
899,502
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Um, that is not exactly legal in my state and I would tell them so!

Section 475.25(1) (h), Florida Statutes, generally provides that a licensee may not share real estate compensation with an unlicensed person, Rule 61J2-10.028(2), Florida Administrative Code, creates an exception: “The sharing of brokerage compensation by a licensee with a party to the real estate transaction with full disclosure to all interested parties is not considered a violation of Chapter 475, Part I, Florida Statutes.” Please note that “all interested parties” should conservatively include any person or entity involved in the deal. For example, the buyer’s lender would need to know about this rebate, as it could impact the lender’s loan calculations.

Oct 09, 2016 11:17 PM
Rainmaker
1,662,373
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

I'm sure you are referring to a company that does this as a buisness model. 1st, those agents for the most part have no experience, what I call newer than newbies. They think real estate is all 'order taking'.

I would say the same as Dorie said, what part of your salary are you willing to give back to me?

Oct 09, 2016 09:56 PM
Rainmaker
921,758
Elyse Berman, PA
Best Connections Realty, Inc. - Boca Raton, FL
Boca Raton FL (561) 716-7824 CRS, ABR, GRI,ePR

Dorie Dillard gets my vote on this one.

Oct 09, 2016 08:45 PM
Ambassador
4,309,924
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Kris Swierz - if they have contract with you, just say 'NO'. If not, say them 'BYE'!

Oct 09, 2016 04:10 PM
Rainmaker
5,176,409
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

 I would not do it.   And I like both Dorie Dillard 's answer and Susan Emo 's also.  A

Oct 09, 2016 02:24 PM
Rainmaker
500,293
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Illegal in Oregon. Commission can only be paid to real estate licensees.

Oct 09, 2016 01:22 PM
Rainmaker
439,812
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

This is a hard one. Do you have a buyers representation agreement with your client? If so what is the commission written there? I'll stick with that. However, having said that, a similar situation happened to me in the past. The client said that if I'm not going to give her rebate she will not do business with me as the other agent, who is also a broker, is giving her a lot of rebate.  She threatened to terminate the agreement. I told her I was the procuring cause of the transaction and I'm not going to reduce my commission or release her from her agreement.  I can understand if she is wanting to terminate because my service is poor but not for her current reason

Oct 09, 2016 12:26 PM
Rainmaker
1,508,825
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

I hear this all the time....and unfortunately they will be unlikely loyal with 3k carrot in front of their face. It is up to you and your broker( if any) to decide what you want to do.

Oct 09, 2016 12:21 PM
Ambassador
3,722,026
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

This sounds like the kind of thing that could upset the antitrust guys.

Oct 09, 2016 11:25 AM
Ambassador
2,216,158
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Ask her is she takes a cut in her pay to help out her clients. Ask for the details of her friend's transaction, too. You never know what may have gone on with that. Do you think this buyer will walk if you don't help her out?

You still have a case for procuring case. Document everything. I don't think many other agents will touch this one, and if your market is hot, the buyer takes a chance of losing the house due to delays. 

Oct 09, 2016 11:23 AM
Rainmaker
1,157,329
FN LN
Toronto, ON

I would do nothing as I am not licenced in your state.

Oct 09, 2016 09:43 AM
Rainmaker
595,422
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

I am in Florida where "kickbacks" to a party to the transaction is legal...so my standard answer is:

"Sorry, that is against our office policy" (No need to explain further)

Eve

Oct 10, 2016 02:53 AM
Rainmaker
1,430,777
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Kris Swierz Wish them well and send them on their way.

Oct 09, 2016 11:52 PM
Rainmaker
3,724,207
Richard Weeks
Dallas, TX
REALTOR®, Broker

It would not be an issue because the buyers rep I would have in place addresses compensation.

Oct 09, 2016 11:49 PM
Rainmaker
3,069,179
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Refer her to the Buyer Broker Agreement she signed with you...

Oct 09, 2016 11:48 PM
Rainmaker
2,590,884
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I would have a nice discussion over lunch

Oct 09, 2016 11:07 PM
Rainmaker
612,192
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
Summit Real Estate Santa Clarita & OC Laguna Nigel

I explain that I'm a professional and work hard for my client's best interest.  Buying business is not something that I need to do.  People work with me because they end up with what they want at the end of the transaction.

Oct 11, 2016 09:46 AM
Rainmaker
4,564,599
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I tell them I am NOT a discount broker, and this is how I make a living.

Oct 11, 2016 07:39 AM
Rainmaker
3,662,006
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Tell them that you will not ask them to take a cut in pay at their work.

Oct 10, 2016 07:31 AM
Rainmaker
1,337,413
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Were you the first to bring the buyer?  Tell them no.  If you were the first to bring the buyer and they write with the other agent, you can sue that agent for the FULL commission.  Then the friend will be paying $3k out of their OWN POCKET.

 

At least that's how CA law allows us to roll.

Oct 10, 2016 05:16 AM
Rainmaker
793,637
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I would say NO.

Oct 10, 2016 02:27 AM
Rainmaker
790,066
Susan Laxson CRS
Palm Properties - La Quinta, CA
Local Knowledge & Global Network

I agree with Dorie Dillard 's response!

Oct 10, 2016 01:09 AM
Rainmaker
2,948,905
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I had that happen on a Million + buyer.  I wish them well.  Months later I found out from the client that referred them that they are not happy with the agent and are still looking.  Hum ... I wonder why?

Oct 10, 2016 01:00 AM
Ambassador
1,615,844
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I would say no and that is why we are not friends.

Oct 10, 2016 12:28 AM
Rainmaker
6,167,000
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I like the response by Dorie Dillard

Oct 10, 2016 12:25 AM
Rainer
229,778
Jessie Cochran
Counts Real Estate Group, Inc. - Panama City, FL
Panama City Realty Group

Is that legal in your state?

Oct 09, 2016 11:49 PM
Rainmaker
1,119,832
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Kris Swierz 

Many brokerages in Washington credit back. In Redmond, Wash gave back up to 1%.  I checked Redfin, for example, 13807 NE 76th St, 98052 brokerage gave back at closing a lot more almost double your 3000 at $640,000. I will look up the property you plan to make a purchase at least know the going rebate(right side upper corner). 

It is something you and your broker need to work out. Try to factor into price so you do not get clobbered with tax. I believe they charge 1.5% for listing full service. If you wish to go ahead you need get them to promise give your solid referral in the future.

Oct 09, 2016 12:58 PM