Commission to a buyer who is also a licensed agent
What's your opinion on a listing agent paying a commission to another agent if they are also the buyer/principal or will have ownership interest in the property? I've done it all...from fully representing another licensed agent on their purchase, to giving them a small referral fee, to giving them the entire buy side commission. Part of me thinks it's a little greedy to expect anything, but on the other hand, I've also collected a commission on properties I've purchased.
[{"id": "htdcy8x", "text": "Doesn\u2019t matter who the buyer is, If there is an agent on the other end of the transaction then he is due his commission.", "replies": [], "depth": 1}, {"id": "hteazst", "text": "I look at it as what I get for my money.  If they will do half the work sure.\n\nIn real world speak i guess say a commercial broker is buying a property for his investment group.  I wouldnt even blink at that.\n\nIve also had folks for owner user type properties have the wife grab a re license, hang it with a res broker and this would be their first and probably only transaction.  I shut that down", "replies": [{"id": "htexx7d", "text": "Sounds like a tremendous liability.", "replies": [{"id": "htgo15p", "text": "most big shop commercial brokers require you list your broker when signing the nda/registering for the property portal and it states they will not pay a commission to a principal.  \n\nI'm nicer than most in that regards.  CRE commissions get negotiated all the time, its not like res where the mls just says what it is.  I don't even ask what the offering commission is when sending LOI's etc for buyers, I just put in what I want and what my client has agreed with me on.\n\nA few times the listing agent has actually thanked me because I got more commission than the offering and they got bonus too ;p", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "htfd102", "text": "I don't understand how this is controversial.   \n\n\nThe agent is representing the buyer (themselves), and they're doing all the work that a buyer's agent would be doing. Why wouldn't they be entitled to the commission?  \n\n\nI represent myself every time I purchase a property, never had anyone bat an eye at it.", "replies": [{"id": "htil9t7", "text": "The main issue is that not all of them actually do the work and/or know what they're doing, like residential agents.", "replies": [], "depth": 2}], "depth": 1}, {"id": "htgxz76", "text": "I don\u2019t participate in commissions as a broker repping myself. In a competitive market you\u2019re sent to the bottom of the pile. Especially with multiple offers in play", "replies": [{"id": "hthmjc6", "text": "It technically is illegal to steer a seller client to a buyer that is not asking for a commission, but in reality that buyer needs to really stand out with a superior offer to be recommended by the seller broker to be the best buyer.\nIf this isn't a repeat buyer then I would require additional proof of funds from the buyer and push the buyer for better terms before recommending them to be the selected buyer.", "replies": [{"id": "htikzkq", "text": "&amp; with the best kind of deals (off market) the broker won\u2019t ever tell you about them. From that point on you\u2019re out of the club. Legally broker isnt repping the seller so they have to be careful who they show these deals to. Only buyers they trust even get to look let alone buyers trying to take part in fees\n\nYou\u2019ll only see the widely marketed and usually overpriced listings that the entire public views on Loopnet", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]