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Discussion Starter · #1 ·
we have had a realtor that is very helpful and shown us many listings in the area we are moving. by chance though we happened upon a property that is FSBO, not even listed anywhere, we have made an offer and are moving forward without him. I feel we need to compensate our realtor for the work he has done and the effort he has put in but the question becomes....how much should we give him?
 

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If the realitor has spent time researching for you or physically going with you to show you properties it would be nice to give him/her some $ and a personal gift like a gift certificate. Good for you for thinking about this.
 

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Very Dairy
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I would make it a personal gift, such as a gift certificate, too.

If it's cash or check, he may be obliged to share it with the agency, and I'm not sure that's your intention.
 

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Depends on if you signed anything with your realtor. Some require a contract that is valid for some amount of time, like 30 days. If you find a house without your realtor and you signed this contract you owe what the contract says, in many cases it's 2.7% of the purchase price. If you didn't sign anything you don't owe the realtor anything, it's part of their job to show houses.
 

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I'd go with the gift certificate to a restaurant or the like. There's no guarantee you would have bought a property with their help, in any case, but if you feel you would have otherwise, then it's a nice gesture on your part.

Jennifer
 

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Just howling at the moon
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At most a gift cert. to a resteraunt

It's the nature of the business. When I was house hunting I used 4 different realitors. Made them compete withe each other and they all knew I wasn't using them exclusively.

When you get estimates for car repair do you give the gentleman that did the estimate a payment?

How about a car salesman that you happened to not buy from? They've spent time with you to try and make the sale. Or any salesman that works on commission.
 

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Like Kevin asked, did you have a buyers' agent contract with him? In most cases, those specify that if you buy something without him, he's still entitled to a cut. If no contract exists, then it'd be nice to send him a gift card to somewhere. It's maintaining a good business relationship, imo. You'd be surprised how often I've spoken to realtors after the fact, and they can be helpful with all kinds of things.
 

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I vote for the restaurant gift certificate. It's a very nice gesture and you may need this person's services again at some time. If you feel you've taken enough of his time and knowlege that your conscience is telling to do this, then make it so.
 

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DQ, I'm a realtor and I'm going to chime in here.

The agent, unless you have a contract signed that states otherwise, is not entitled to anything.

However.

If you are happy with the services that were provided to you and you want to give him something, here are a few things to keep in mind.

Any cash that comes in will probably have to be shared with the broker. Depending on the rules in your particular state, it may also affect the value of gifts as well.

A gift certificate is a nice gesture but, depending on what it is for, it may not really be something that is needed. Something like a gas card might be much more useful for someone who has to put a lot of their money in the gas tank of their car. Besides, gas might help earn a commission on another sale - a dinner at a restaurant will (hopefully :)) only last for that one night and then it's gone.

And most importantly, if you liked the service you were given, refer your friends, family, co-workers - anyone - who might be buying or selling a house to the agent you worked with.

Any of the above would be apprciated by an agent.
 

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Discussion Starter · #13 ·
thank you everyone. we never signed a contract. he has shown us at least 15 houses and driven all over with us. I know that I don't HAVE to give him something but its not as if he wasnt' trying. we basically looked at every house that might have suited us in the area and he has been very prompt with returned phone calls emails etc.....and done lots of phone work looking into restrictions, owner carry, utilities and stuff. I know what a bummer it can be to work and really try and not get anyting out of it. I may not fork over as much as I was thinking though after hearing your thoughts. I was thinking $500-1000 but ouch that was gonna hurt. I just want to do the right thing. I can't help but feel we are giving him the shaft.
 
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I agree that he needs more than a gift certificate to a restaurant. That seems a little chintzy to me. If you had signed a contract he'd be getting 2.5% or more. If you have a $100K house that's $2,500. A Micky D'ss gift certificate looks a little pale.

What about a bunch of different gift cards? One for gas, one for dinner and one for a movie? You can make them generous enough that he can go several times.
 

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Very Dairy
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Another thing is to send a nice, professional-looking letter complimenting him on his diligence, thoroughness, or whatever aspect of his services with which you were impressed. (No need to mention that he didn't actually find you a house!) He can use such a reference professionally when marketing his services to other clients (buyers or sellers).

Never hurts to give credit where credit is due! ;)
 

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. I was thinking $500-1000 but ouch that was gonna hurt. I just want to do the right thing. I can't help but feel we are giving him the shaft.
I like the fact that, unlike some here, you appreciate and respect the fact that the agent has invested a lot of time, money and effort on your behalf, and isn't getting compensated. I know several realtors who are really getting rather cold to the idea of shuttling folks around "on tour", unless they get a real solid read that the prospect is ready and able to buy today. It's amazing how many folks feel that it's perfectly OK to waste another's time and money and brush it off as, "that's their job". People who treat others like dirt deserve what they get. And what they get isn't great service and a desire to build a long term relationship.
 

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We are working with a realtor looking for land and she just emails listings and has told us to drive around and check out the property to let us know which ones she should follow up on. And they are close; we just got home from scouting out three places and the closest one was 45 miles away. I'd say your realtor earned something and a gas card sounds good to *anyone*!

Good for you for feeling so inclined. :)
 

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East Central MN
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I like the fact that, unlike some here, you appreciate and respect the fact that the agent has invested a lot of time, money and effort on your behalf, and isn't getting compensated. I know several realtors who are really getting rather cold to the idea of shuttling folks around "on tour", unless they get a real solid read that the prospect is ready and able to buy today. It's amazing how many folks feel that it's perfectly OK to waste another's time and money and brush it off as, "that's their job". People who treat others like dirt deserve what they get. And what they get isn't great service and a desire to build a long term relationship.
That's the cost of doing business for having a monopoly on the Multiple Listing Service. There's information on the MLS that us poor mortals don't have access to so we need the keepers of the data to get us the information. And if Realtors want to protect themselves from situations like this then they can make the potential buyer sign a Buyers Contract.

When I owned my own company I had to go to businesses and give them bids and write up proposals for their project. I drove all over the state, and I didn't get all the jobs and nobody compensated me for putting in the bids. It's the cost of doing business.
 

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we have had a realtor that is very helpful and shown us many listings in the area we are moving. by chance though we happened upon a property that is FSBO, not even listed anywhere, we have made an offer and are moving forward without him. I feel we need to compensate our realtor for the work he has done and the effort he has put in but the question becomes....how much should we give him?

I would first determine what agreement you have with him. Just because you found the house doesnt mean doesnt get a CUT of the sale. If you had a buyers agreement he may get a cut. Check your paperwork, If there is no agreement then I say you own him nothing.
 

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The time for figuring out this question was while you were negotating with the seller of the fsbo and worked out an arrangement for the agent to recieve a 1-2% commission for representing you in the transaction, you still need someone either an agent or an attorney to represent you. Now what ever you give him will not benefit you.
 
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