Although some states ban the practice, called dual agency, in which the same real estate broker represents the buyer and seller in a real estate transaction, most states have settled for a kind of disclosure Band-Aid that doesn’t work well for consumers.

It’s a little like the warnings on cigarette packets about the dangers of tobacco that really don’t make much difference to those who really want to smoke.

The problem is — and all real estate agents understand this — when consumers find a house they want to buy, they become so emotionally involved in the purchase that they barely listen to the legalities because they are focused only on two things: price and purchase.

Read more

https://realtyconsults.wordpress.com/2011/07/16/dual-agency-disclosures-fail-homebuyers/

Your help please. I need the company names and phones of lenders who will allow rebates to buyers, excess of buyer closing costs please. I was speaking to a home mortgage broker in Houston, who has 25 years of experience (started when she was 5 years old).

I suggested that she could send me buyer referrals. Since Texas made rebates legal in 2010, she agreed that the rebates could only pay for buyer closing costs.

However

Company will continue to offer listing services below typical going rate

After closing offices in 12 markets and shedding 700 agents during the first quarter, ZipRealty says it will no longer offer commission rebates to buyers in the 23 markets where it continues to operate brokerage offices. The move is part of an overall strategy to achieve profitability. See this link for the entire story.

https://realtyconsults.wordpress.com/2011/07/01/ziprealty-eliminating-buyer-rebates/

This a strong. May be the best article I have seen on alternative compensations plans and the evolution of the industry.

https://www.ratetake.com/news/2011-06-24-4.html

Editor's note: This is the final article in a six-part series focusing on low-fee real estate business models.

Here is mumbo jumbo from Feb 2011 meeting of Texas Real Estate Commission. Please help me understand this (this is all there is).

????

Rules adopted that the meeting Feb 14, 2011 Commission Meeting

535.154 Advertising

535.154 (m)

An advertisement containing an offer to rebate a portion of  a licensee’s commission must disclose that payment of the rebate is subject to the consent of the party the licensee represents in the transaction.

Hmmmm  ???

Wow, Great video on how realtos get more ROI from your time.

https://youtu.be/3Z8nOZsqRUs

Maybe this will help.

Today I spoke with a trusted mortgage person with 25 years experience. She said that Fannie Mae and Freddie, etc, will not allow a broker to rebate commissions to buyer except to the extent of closing costs, which max at 6% for (or 4% max) depending on the % down payment. She said rebated to buyer of seller commission could not be on the closing HUD and not given to buyer outside of closing.

Do any ACREs have experience with this issue? any documentation?

Here is the Active Rain post from Mimi Foster.

https://activerain.com/blogsview/2321036/why-should-a-seller-use-a-realtor-

 It is a very good itemized list of what she does for sellers.  It is a very long detailed list. You should see it.  I reposted it on my blog

https://realtyconsul.wordpress.com/2011/06/04/list-of-what-we-do-for-sellers/

I am going to use these ideas to create a list services to be used with the "Needs Analysis Checklist Form". The list of services will be renamed "What We Can Do" because our menu may have tasks that the client wishes to do instead of the consultant.  I suspect that this list of tasks may be too large to include in the "Needs Analysis Checklist", therefore I may make a separate print, in 14 point font with one page for each subcategory of services. The purpose will be to inform or remind the seller of the daunting time required to sell the property. Therefore the seller may decide to pay his consultant for a larger bundle of services, thus more revenue earned by his consultant. I am still developing this concept and will discuss with ACREs at a later date.

Hopefully several ACREs will comment on this

A real estate pay playbook: why commissions work

https://www.inman.com/buyers-sellers/columnists/krisberg/a-real-estate-pay-playbook-why-commissions-work