Derek Eisenberg

One important issue not mentioned is when the bank renegotiates the commission it will permit. For example a broker might sign with the seller at 6% and the bank often knocks it down to 5%. If the broker offers 3%, the warning in MLS subject to bank approval must be interpreted by buyer's brokers to mean the commisssion is also subject. A better way would be a commission split where a listing broker could put in 50:50 or similar. Derek Eisenberg Continental Real Estate Group, Inc.

To the April 16, 2008 - 6:33pm writer, we offer full service as an option to our flat fee clients and wish everyone would take it. We make a lot more when they do. So your premise that it does not surprise you that a flat fee agent would support rebates is just wrong. What I support is the right to negotiate commission on the buy side but I don't support trickery. I don't support rebates and concessions that offset downpayment requirements and defraud lenders because this perpetuates the banking problems that we have in the economy now. Rebates are not my ultimate goal; they are just a doorway. What I really want to see is for buyer's agents to compete for buyer business. If a buyer's agent is willing to take less than the offered co-broke, the seller should drop the price by the reduced amount that he/she does not have to pay in commission. As for Doctors, they negotiate with your insurer but in cosmetic surgery which is elective, they negotiate all the time. To the April 17, 2008 - 1:27am writer, what leads you to believe that Realtors cannot work hourly. Nobody has to let them do it. Derek Eisenberg http://www.mls2u.com

Chris, You can negotiate with an attorney, doctor, or plumber but if you are a buyer, the commission for your buyer's agent is set by the seller. That goes against the spirit of all commissions are negotiable. They are negotiable for Sellers but not for Buyers. Rebates give Buyers the same freedom to negotiate that Sellers have. The problem is that it amounts to bank fraud when a seller is required to put a certain amount into the purchase (a down payment based on a loan to value ratio) and they don't really put that amount down because of rebates. The same goes with seller paid concessions. All this trickery amounts to bank fraud. Sure it closes more sales but then we have a lending crisis like we have now and the whole market suffers. If an LTV is 80% conventional and 97% FHA then the buyer should be paying 20% or 3% respectively towards the net purchase price after all the rebates, concessions etc. Instead we had people buying for no money down and now we have a mess. So rebates are good but so is truthful reporting. Derek http://www.mls2u.com