I know a lot of my friends use agents who can offer some credit/rebate at closings (for house value over $800k). For example, for a house value around $900k, the buyers would be able to get rebate of 1% of the value from their buyer agent at closing. The buyer agent still gets paid for 1-1.5%. I have worked with an agent in the past and would like to continue working with her for purchasing the next house. Is it ok to ask her to extend 1% rebate? Am I advised to not do that, instead of focusing on building a relationship with an agent and make sure she is well paid?
Hi @Rachel Feng , this is a state-specific thing. In some states the real estate license laws prevent this (as a sort of Buyer Inducement) while others say "induce away."
Assuming it is legal in your state I'd say it comes down to what you want our of your agent. If you want to do all the heavy lifting and organize things along the way (because that suits you, or because you buy and sell a lot of homes and know your way around the closing table nearly like a pro) then it can be a great boon for you. If that's not the case, and if you intend to do repeat business with someone and you want the best of them I'd forego the request altogether.
Of course I'm biased, but more than advancing any agenda I want to share a bit of the psychological side. Agents will give their best to some people and their "good enough" to others. It's not right or wrong, it's just how it is and it's like that in every industry. In every industry I'd say that you want the absolutely best, which is most readily incentivized with finances and culture.
I hope this has been helpful :)