Comments on: Shady Realtor Bonuses? 10%!! Free Cruise? Be Aware. http://blog.franklyrealty.com/2006/12/shady-realtor-bonuses-10-free-cruise-be.html Tue, 02 Mar 2010 02:11:05 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://blog.franklyrealty.com/2006/12/shady-realtor-bonuses-10-free-cruise-be.html/comment-page-1#comment-1737 Anonymous Wed, 28 Mar 2007 13:28:00 +0000 http://franktempblog.wordpress.com/2006/12/14/shady-realtor-bonuses-10-free-cruise-be-aware/#comment-1737 Realtor bonuses that are in reality rebated to the buyer under the table are a problem as well - no lender in their right mind is going to do a 100% purchase loan where the buyer/borrower is getting cash back at closing, turning that 100% loan into a, say 125% loan. OK, some lenders actually do this (First Franklin), blissfully ignore a "pre-paid property management fee." Whatever.<br/><br/>As someone who sees lots of transactions, I assume any exhorbitant fee is being used as grease. A 10% bonus is what the realtor uses to sell the client what has essentially become this: do you need 10, 25, 50 $100K? Buy a house! Or, the best way to buy that car you want (for cash) - oddly enough - is buy a house!<br/><br/>Given the recent interest of the feds in these transactions, I would advise anybody watching the infomercials or being sold this line to put 2 and 2 together. Realtor bonuses that are in reality rebated to the buyer under the table are a problem as well – no lender in their right mind is going to do a 100% purchase loan where the buyer/borrower is getting cash back at closing, turning that 100% loan into a, say 125% loan. OK, some lenders actually do this (First Franklin), blissfully ignore a “pre-paid property management fee.” Whatever.

As someone who sees lots of transactions, I assume any exhorbitant fee is being used as grease. A 10% bonus is what the realtor uses to sell the client what has essentially become this: do you need 10, 25, 50 $100K? Buy a house! Or, the best way to buy that car you want (for cash) – oddly enough – is buy a house!

Given the recent interest of the feds in these transactions, I would advise anybody watching the infomercials or being sold this line to put 2 and 2 together.

]]> By: Christopher http://blog.franklyrealty.com/2006/12/shady-realtor-bonuses-10-free-cruise-be.html/comment-page-1#comment-1736 Christopher Wed, 20 Dec 2006 07:29:00 +0000 http://franktempblog.wordpress.com/2006/12/14/shady-realtor-bonuses-10-free-cruise-be-aware/#comment-1736 Things like this make me want to just deal with "for sale by owner" properties. If i had any money to buy a place, I mean. <br /><br />But is it worth it to risk going the FSBO route even though both buyer and seller probably have no clue what loose ends need to be tied up in terms of the paperwork and whatnot?<br /><br />-c Things like this make me want to just deal with “for sale by owner” properties. If i had any money to buy a place, I mean.

But is it worth it to risk going the FSBO route even though both buyer and seller probably have no clue what loose ends need to be tied up in terms of the paperwork and whatnot?

-c

]]> By: tchaka owen http://blog.franklyrealty.com/2006/12/shady-realtor-bonuses-10-free-cruise-be.html/comment-page-1#comment-1735 tchaka owen Wed, 20 Dec 2006 05:48:00 +0000 http://franktempblog.wordpress.com/2006/12/14/shady-realtor-bonuses-10-free-cruise-be-aware/#comment-1735 Frank, being a licensed agent in Florida I get lots of emails offering incredibly high commissions. I recently received a 10% offer as well as a 6% offer with a $40k bonus. If prices were in line with the market, perhaps these incentives wouldn't be needed.<br /><br />Your point about using one agent is important too particularly from the standpoint of performance. If you don't commit to an agent, the agent is less likely to commit to you. You need someone in your corner when you negotiate something this important.<br /><br />Good post! Frank, being a licensed agent in Florida I get lots of emails offering incredibly high commissions. I recently received a 10% offer as well as a 6% offer with a $40k bonus. If prices were in line with the market, perhaps these incentives wouldn’t be needed.

Your point about using one agent is important too particularly from the standpoint of performance. If you don’t commit to an agent, the agent is less likely to commit to you. You need someone in your corner when you negotiate something this important.

Good post!

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