Broker spouse getting commission?

Question

Hi everyone my wife is a licensed real estate broker in California althought she has a full time job working in the bank.  My question is if I'm buying real estate in a different State can I tell the seller's agent that my wife is representing me and therefore demanding she gets half of the commission of the sales?  (Even though she is not licensed in the other State?)

Jim Gordon · Answer

I can see a big procurring cause argument coming. Ask your wife how R.E.  works. You have been in contact and working with the listing agent on finacials on the property and working with another agent to view the properties. Your wifes broker is due a cut if she gets the referal closed. Sounds like a fight coming to me.

Jim Gordon · Answer

Splitting the commission is not legal in Ohio but lets look at your deal.  100,000 purchase at  2.5% = 2,500 less 30% for your wife= 1,750 less 50% for broker agent works for= 875 less 40% for taxes =  525 before sales expenses to your agent.

How much are you going to ask them for?

Wayne Tam · Answer

What I meant was what if the my buyer's agent split his 2.5% commission with me instead of my wife just getting 30% of the 2.5%.....Honestly I don't think a buyer's agent does much anyway (in a RE investment transaction at least, compared to like say a first time home buyer with absolutely no idea about anything real estate).  In my case I did all the research myself online, looking for the properties on the loopnet MLS, getting the rental/expenses information directly from the seller agent.  All our agent did was communicating with the seller agent in order to arrange showing us the interior of the properties we were interested in, which I could've probably done myself (contacting the seller's agent to show us the RE).

Wayne Tam · Answer

Thanks for your answer!  My wife was offered 30% referral fee of the 2.5% selling side commission (The property is in McAllen TX).  Is that about the right % for a referral fee?  I've read in one of my real estate investment book (Investing in Duplexes, Triplexs & Quads by Larry Loftis) that we as the buyer should have a buyer's agent just so that we can ask the agent to split half of what he gets from the transaction (50% of the 2.5% selling side commission he gets).  Is that something normally done in real life (especially in TX)?  Thanks.

Frank Adams · Answer

Nope; she would have to be licensed in that state. Generally though she can ask for a referral fee, but it would have to be set up when the initial contact is made with the agent in the other state.

all cash