Barry Preusz

Regards,
Nick Davis

So I gather from Nick that it’s okay for someone to let ME finance a rebate (and get a tax bill on it too) and fail to provide service and simply let me walk into a bad financial decision/situation?!? That’s not right! I want a Realtor to advise me even though this will be my second home to purchase. I WANT a Realtor’s expertise! I want someone who can do more than tell me how to get to a house I found online (I have Google Maps already), I want someone to advise me on ALL of my options- I would never ask for a discount on expertise!

I respect your opinion, so you can please respect mine.

I do not agree with all of your assertions that under the law as it is written that DB’s can’t help buyers. You can simply give away all of your buyer side commission by rolling it all off the sales price. At least then you are not PAYING THEM TO USE YOUR SERVICES, as they put it.

No offense, but I also do not agree that it is the buyers money, I am firmly on the sellers side in this argument. If you aren’t going to provide the services I am paying you to provide, which is bring me buyers “physically show them my home and fully represent them” then it was never your money to rebate in the first place. It is the sellers money and a seller oughta have a right to reduce your commission to zero when a buyer rolls up to the home alone without you.

At least by rolling it off the sales price, every one wins, everything is disclosed, and DBs can still take a huge bite out of market share. The complaint that you cannot compete because you cant give away cash to buyers is a load of crap. Simply put, the law is not preventing you from competing nor is it unfair.

To finish- If a buyer can make great financial decisions with their money; then the move across country was planned, they saved money for it. They’ve also gone ahead and paid for their washer and dryer in cash or have the cash ready once they’ve closed- because they’ve planned for it. If they haven’t, maybe they need someone helping them make a sound financial decision; acting in their best interest. Which is what Realtors do and why we are paid.

Given your logic of a “level playing field“, then ALL concessions should be done away with — not just an arbitrary restriction on cash rebates.

I find it odd that the State Of Tennessee (comprised mostly of Republicans) use the Gov’t to restrict something they don’t like, yet republicans hate Gov’t intervention! Talk about a paradox!

Secondly, per the USDOJ, “Rebate” means a payment of monies or anything of value by, or on behalf of, a Licensee to a client or customer (or to a third party authorized by the client or customer to receive the payment) that is in connection with the provision of Real Estate Brokerage Services.

Although home sellers are permitted to offer inducements directly to the buyer, this does not mitigate the anticompetitive effects of the Rebate Ban. Such a discount is attached to a particular house (and not the broker’s services). Thus, it is not a factor when a buyer chooses the broker who should represent the buyer in finding and purchasing a home. Brokers should not be prohibited from competing to become the buyer’s agent by lowering their prices through rebates and inducements.

Rebates and inducements benefit home buyers and sellers. Under the traditional structure of a real estate contract, the seller and seller’s broker determine the amount of the commission, and how it is allocated between the seller’s and buyer’s broker. If the seller’s broker also finds the buyer, then that broker keeps the full commission. If, instead, different brokers represent the seller and buyer, the seller’s broker pays the commission of the buyer’s broker, and the size of that payment is not controlled by the buyer. Being able to offer rebates and inducements allows brokers to compete for the buyer’s business by reducing the compensation they receive for representing a buyer.