For instance, if a person simply did not have enough money for the down payment, they will ask that the real estate agent pay this for them. The real estate agent might just say yes because they want to make a sale. After all, no one needs to know that the agent gave up that money. All anyone ever needs to know is that a sale was made.
But those in real estate careers know that selling a house or property is a lot of work. If they are not getting the commission, then they are doing all of that work without the extra pay that they feel they deserve. It doesn't sound very smart, but there are agencies that actually do it. They're probably out of business by now, but nonetheless, they do/did exist.
There is always a chance that there will be some compensation for the lost income. Basically, people in real estate careers hope that giving away their commissions looks attractive to other homebuyers. If this is the case, then it will attract more and more business. If this is the case, then a little lost income here and there will mean nothing when held in comparison with the skyrocketing sales.
Then they might not provide full service to the buyer, as those in real estate careers are well aware of. The agent might not obtain the best deals or even negotiate with the seller. The agent might not reveal that they aren't doing their best, but with all of the money that the buyer has made, why should they care?
The real estate agent probably will not meet with the buyer. For the most part all of the interaction will be done through fax or e-mail, meaning that the buyer may never actually meet the real estate agent. If they're lucky, they'll meet the agent at the closing for the house. This could be a serious problem, because the real estate agent won't be there to drive the buyer around to look at properties or even explain paperwork. It's amazing what a difference the commission can make.
People in property manager jobs can see the benefit of giving away their commission, but they can also see the downsides. Whether or not you actually do this is up to you, and it is something that you will need to discuss with your clients. Property manager jobs can either be easy, or they can be hard. Typically, if you want them to be rewarding you will hold onto your commission, as this will make it all quite worth it in the end after the final paper is signed and the deal is closed. Remember, this is completely up to you, so make the decision that is best for you.
