Memphis - making an offer & buyer's commission rebate

Memphis - making an offer & buyer's commission rebate

Member since 2020 · 1 post · 1 vote

Found an investment property I'm considering buying with cash in Memphis -- new to this city.

Are agents in Memphis willing to give buyer's rebate/credit to help with the closing costs? I've done the leg work in finding the property, so the agent just gets in to help with the offer and take it to the finish line - should be a straightforward as I'm paying cash.

My recent deal (outside Tennessee) is basically this way. I called the seller agent, and found out his son is also realtor in his business group. I asked the son to be my buyer agent and if he would kick back 1% of the sales price; the father & son team would keep 5% instead of just 3% if I had gone with someone else. Worked out well for everyone and didn't see any issue with buyer's/seller's interests not being looked out properly.

What's usually agents' commission in TN? 6%, 5%? Not sure if this violates the solicitation rule, but I can use a free advise/recommendation from Memphians for a buyer's agent.

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  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 888 votes
    6y

    @Lonny Lansing There is no SET commission structure. However, it is typical that the LISTING agent will charge a 6% commission to the SELLER and then offer 3% to the BUYER's agent. A lot of homes sold include a seller's concession or buyer paid closing cost. The highest "rebate" or gift allowed by a Realtor in the state of TN is $500 and that is suggested to be given in the form of a gift card, or other non-monetary means.  I hope this helps. 

  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    A buyer's agent can not adjust the commission since it's part of the listing agreement between the seller and the listing agent. Can buyer's agent kick in their own money after to compensate? Maybe, but why? The brokerage(s) on both sides would not allow it. Just as an aside, I don't work with any investors who ask me to reduce my commission. If they are going to be a long-time client they get a reduced listing price and my expertise on the buy-side. Anytime you use the word "kick back" it's not a good thing. Agents work on commission only, they don't get paid for all the showings they will do for you before, during, and after, so maybe someone will take you up on your "offer" but I don't think it's your best way to find the best buyer's agent in a market you might stay in.

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