What ways can an agent who is buying for themselves use their commission?
486If I am buying a home for myself and family as an agent, in what ways am I allowed to use my commission? Obviously, I can pocket the commission, but what other ways are permissible? Can I use it towards closing costs? Can I used it to lower the cost of the overall house price (and thereby forego a commission at the end of the transaction)? Can I use it towards my downpayment? Can I use it in addition to my downpayment?
8 answer(s)
About 4 years ago
Use it towards closing costs and or to reduce the price you are paying on the house. Check with lender, broker and title co on what requirements each one has. Also verify with your accountant how you are going to document it.
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DislikeAbout 4 years ago
You can lower the price and have an amendment that you are not taking a commission. You need to consult with your Broker beforehand on any decision you take since they are your sponsoring brokerage.
About 4 years ago
There is lots of different way you can use your commission - And you are Agent and how much you Pay your Broker ?fixed amount or % of the Transaction. and always ask your Broker, even you Buying for yourself, you still pay your Broker.
About 4 years ago
One of my favorite parts of real estate is there is always a million ways to make a deal work. It depends on what your broker will allow of course, but seller's contributions in lieu of commissions, commissions directly toward closing costs, you can gift to yourself. After closing costs, it can help with taxes.
About 4 years ago
You can do an amendment reducing the price by the amount of commission. The seller gets same amount and you won’t have to pay taxes.,
About 4 years ago
Talk to listing agent if seller can contribute towards your closing cost in lieu of part of your commission or if seller can reduce sale price in lieu of commission.
Must check with your broker what is allowed.
Must check with your broker what is allowed.
About 4 years ago
Perhaps seller would contribute closing cost in lieu of commissions? And or reduce price by such amount.
About 4 years ago
First thing you should do is talk to your broker and find out what they will allow.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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