Author Topic: Procuring Cause and Rebating Agents - Penny Wise and Pound Foolish?  (Read 1014 times)

catccc

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So, I called a listing agent to see a place we are super interested in.  I've done this too many times to count.  We haven't signed a buyers agency agreement, but we definitely want our own representation.  (PA allows dual agency.)  It makes all the sense in the world to me that I see a property with the agent with the most knowledge of the property.

We had a rebating agent lined up to rebate 50% of the commission.  The idea was we'd save our agent a ton of time accompanying us on tours, because we'd look on our own.  When we found a place, we call her up and she'd help us put together an offer and see the purchase process through.  We first contacted her in 2012, and communications were sporadic, because we were looking very casually.  Fast forward to today, I emailed her and haven't heard back.  I figure she isn't in the industry anymore or whatever.

So I went to redfin and contacted an agent there.  Her team got back to me and said if I see the property with the listing agent, he will be our agent.  Since that is not okay with me, I asked if both agents could be present.  Now they are sending someone out, and told me I could tell the listing agent that he doesn't need to be there, but I'd like him there.  Redfin didn't specify a percentage rebate, but it looks like about 25% of the buyer's 3% commission. (~$3,600)

I know Redfin doesn't want to mess around and have the listing agent call procuring cause on them and not pay out the buyer commission.  But really, as the listing agent, shouldn't they also need to do something to sell the place, like unlock the door and answer questions!?

Now I'm wondering if this chasing down a rebating agent is possibly stupid- penny wise and pound foolish.  The buyers agent from Redfin is not super familiar with my town.

DH also knows someone, an acquaintance/friend, that may be willing to be a rebating agent.  And even if he's not willing to be a rebating agent, do we want him anyway because we know him and we trust him and he knows this area better, and could potentially get us a better price, anyway?

Ahh!  My head is just spinning.  We are seeing this place tomorrow, and right now both agents are going to show up unless I call someone off.

I'd appreciate any thoughts on the topic, but if I'm trying to get specific questions in:  Do I really need to have my buyer's agent with me at the tour to avoid dual agency?  And should I call off the Redfin agent in favor of someone more local?

catccc

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Re: Procuring Cause and Rebating Agents - Penny Wise and Pound Foolish?
« Reply #1 on: April 26, 2016, 12:26:41 PM »
Crisis averted.  DH's buddy is happy to help and rebate a portion of his commission.  IDK how much, but IDK how much I care that this point, because I trust that this guy isn't after the fattest check, will know what a fair offer is, will negotiate well for us, and have our best interest in mind.  So I'm going to call off Redfin, and call the listing agent and say "we have a buyers agent, does he need to be there?"  And go from there.

Any feedback is still appreciated, I'd still like to hear about others experiences with this kind of thing.