Currently in the process of selling our house and moving to a new town due to new job. Our house is listed with an agent, we have that end of the transaction under control.

New town is 3 hours from current home, so I am renting and working during the week and going home on the weekends until house sells. When looking for a place to rent the husband of one of my new co-workers is a broker and owns a real estate company. He took the time (about 3-4 hours total) showing us around town and found me 3 options for a rental and I am currently renting one of those 3 options. He did not have any kind of deal with the landlords and did not get any kind of commission, we planned on using him as our agent when we start looking to buy, so he would be compensated by the commission when we buy a new home.

The CEO of the company I am working at said he knew someone who is planning on putting their house on the market in the spring that would meet our needs. We are a little different in that we need acreage for horses, so we are not just looking for a house in the 'burbs.

I called the guy and have looked at the house and property and it may just be exactly what we are looking for if we can come to terms on an offer and get our house sold. He is not planning on using an agent or listing it if we can come to terms.

So my question is: What should we do about the realtor/broker who showed us around? I want to be fair to him and compensate him in some way for the time he took to show us around. Could we still use him as a buyer's agent to handle the transaction for us? What kind of pay would be fair for doing that?

We have not signed any kind of contract with him yet, but I am not looking for a way to cut him out, I want to do the right thing and will compensate him one way or another for the time he took to show us around and find this rental property for me.

Using him as a buyers agent may make sure paperwork etc doesn't get squirrely or mistakes made.

My thoughts are to be honest and open with him and to offer to compensate him for his time. Go from there.

If the current home owner of the home you are buying, plans on selling it to you without a realtor. Then you would be paying the realtors commission, not the seller. The seller is saving a 7% realtors commission by selling it FSBO. You should have a real estate attorney review all of the documents when you buy it and a title company do a title search and also get an appraisal/survey for insurance purposes.

Was the rental property listed with a realtor? If so, he should have gotten 1/2 of the commission (usually 1 months rent is the total commission). If not, give him 1/2 a months rent for the commission of the rental property if you wish as a gift.

Give him a gift certificate for showing you around and when you give it to him just ask him what he would charge to act as a buyer's agent on that property.

He will likely be pretty fair since he doesn't have to do much and would hope for future referrals and/or business from you now that you live there.

My wife was (briefly) a Realtor, they get jerked around all the time. You are very cool to want to compensate him for his time.

quote:

Originally posted by jimmy123x:
Was the rental property listed with a realtor? If so, he should have gotten 1/2 of the commission (usually 1 months rent is the total commission). If not, give him 1/2 a months rent for the commission of the rental property if you wish as a gift.

They have not listed the property with a realtor. I do have access to an attorney for handling the closing as a benefit where I work (one of those legal plans offered as a benefit). I would definitely have an attorney handle the paperwork and make sure a title search and insurance is purchased.

Just want to be fair with the realtor who showed us around, I will compensate him in some way for the time he spent with us.

quote:

Originally posted by Strambo:
Give him a gift certificate for showing you around and when you give it to him just ask him what he would charge to act as a buyer's agent on that property.

He will likely be pretty fair since he doesn't have to do much and would hope for future referrals and/or business from you now that you live there.

My wife was (briefly) a Realtor, they get jerked around all the time. You are very cool to want to compensate him for his time.

That's a good idea, he is a very nice guy and very connected here in town and I will be working (not directly, but in the same company) with his wife; but even without that connection I would still compensate him in some way - he spent several hours with us and I know he is busy.

IMHO: You are under no obligation to compensate the realtor you had worked with. As others have mentioned, you could give him a gift, but that's it. I will share that I have seen a buyer agent use a realtor to do the paperwork and pay them a 1% commission. Not knowing your state location, their may be rules/laws that require realtor or attorney participation. Here in Virginia, one is not required to use a realtor or attorney for closing.

Chances are he showed you around because you're a good guy and he's a good guy. Not working by the hour or for a commission just doing an out of towner a solid. Call it good karma and pass it on. A nice gift card to a high end place is always appreciated. $200 to Ruth's Chris or a Morton's makes a good impression.

quote:

Originally posted by doublesharp:
Chances are he showed you around because you're a good guy and he's a good guy. Not working by the hour or for a commission just doing an out of towner a solid. Call it good karma and pass it on. A nice gift card to a high end place is always appreciated. $200 to Ruth's Chris or a Morton's makes a good impression.

This.
I bet if you told him about the situation and asked him what you could do to compensate him for his time he would probably tell you he was glad to help you out, don't worry about it.

Gift card at a really nice restaurant to say thanks.

Thanks for the suggestions! I'm thinking the nice gift card and explanation and will go from there. I'll update when the situation is resolved. Probably be after the first of the year.

quote:

Originally posted by SpinZone:

quote:

Originally posted by doublesharp:
Chances are he showed you around because you're a good guy and he's a good guy. Not working by the hour or for a commission just doing an out of towner a solid. Call it good karma and pass it on. A nice gift card to a high end place is always appreciated. $200 to Ruth's Chris or a Morton's makes a good impression.

This.
I bet if you told him about the situation and asked him what you could do to compensate him for his time he would probably tell you he was glad to help you out, don't worry about it.

Gift card at a really nice restaurant to say thanks.

i agree

been in the sales game a long time -- you learn not every interaction is immediately revenue producing

the idea is - if you're good to customers and potential customers - it pays off eventually either through future business, referrals, etc

its the nature of the sales game. it takes a while to sink in but when you stop trying to make a 'quick buck' every time its a far more enjoyable career

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As others have said, just offer to pay him something for his time and be done with it.

A real estate agent is the last person you want to ask about making sure all the documents are in order. Find a good real estate attorney. Realtors are prepared to fill out a Purchase and Sale agreement but that is about as far as you will want to go with them.

This is NOT a slam on realtors at all just my observation after spending over thirty years in title insurance.