Giving bonus comission to listing agent and seller

Buying & Selling Real Estate
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Giving bonus comission to listing agent and seller

Javier Acosta
Real Estate Investor · El Paso, TX · Member since 2015 · 18 posts · 0 votes

I am a Texas real estate agent, and with the crazy market, I want to make my offer more attractive.

I want to offer that my 3% comission be given to the listing agent and seller; 2% to listing agent, and 1% to seller.

How would I go about doing this?

Where in the contract would I put this?

Thanks in adv!

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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
5y

Ask your broker...it's not your commission to give away or negotiate.  It is the broker's commission, they just share it with you potentially....so you will want to involve them.  They also like to get paid something as they have liability in the transaction.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    Agents are not a party to the contract between buyer and seller.  Buyers are not a party to the listing contract between agent and seller. 

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  • Ash Fields
    Member since 2020 · 301 posts · 80 votes
    5y

    Hey @Javier Acosta.  I'm in NC, and not familiar with real estate or contracts in Texas.  Can you add these terms in an Additional Provisions section or Addendum to Contract?

    I'm not a lawyer/Realtor in Texas, so this is in no way advice.  I'd be interested to see how it plays out.

    Outside of winning the deal, why are you doing this?  Are you wanting to build future rapport with the other agent or your client?  When you say bonus commission, is that everything you would be paid, or only bonuses on top of your commission?

    Keep me updated, and hope it works out.

    Cheers,

    1Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    5y

    Ask your broker...it's not your commission to give away or negotiate.  It is the broker's commission, they just share it with you potentially....so you will want to involve them.  They also like to get paid something as they have liability in the transaction.

    3Reply
  • Dan Maciejewski
    Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
    5y

    1. It sounds like you may be the buyer, as well?

    2. Many brokers allow you to forgo your commission for 1-2 personal buys per year.  Mine does.

    3. You would most likely want to use a commission change agreement to modify the commission structure already in place between the seller and listing agent.

    3. Possibly something in the additional terms paragraph that states that the offered buyer's agent commission shall be split between the seller and listing agent as spelled out in the "commission change agreement."  The commission change agreement is not part of the P/S contract, but a separate contract between the brokers, like a referral agreement.

    4. Definitely an ask your broker question.

    1Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y

    @Javier Acosta talk to the sellers agent and tell them you want them to represent you in this transaction. Ask them to reduce their "buyer side" commission by 1%. The listing agent will 2% extra on the selling side and owner will not have to the 1% they gave up. I suspect if you represent yourself on the buyer side that your broker is entitled to a portion of the commission. Also make sure you are even allowed to let someone else represent you. You may have something in your contract that states otherwise. 

    1Reply
  • Joe Norman
    Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    Step 1: Ask your Broker

    There are no other steps.

    1Reply
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