Real Estate Commission

This is a controversial thing in the real estate industry. In some states (obviously AZ is one) Agents are allowed to give "kick-backs" from their commissions to buyers for using their services. As a Realtor, I think that it cheapens the business, but as an investor, it's one more tool to utilize for no money down deals. Just beware of Realtors willing to give away their money to get your business. They do not get an hourly wage or salary. Their sole income is from commission from selling a house. Some questions to consider are:

1. Why is this agent willing to do the same work for less money?
2. Is he/she desperate or does he provide a sub-par service?
3. OR is the agent willing to lose a little up front to make more money in the long run (in volume)?

The best bet would be to contact and interview the agent. It's all about building relationships from trust. If this is a trustworthy agent (I don't know him so I cannot say), then why not take advantage of the extra money in your pocket. Just realize that you most likely will be 1099'ed for tax purposes since the real estate commissions are VERY strict on bookkeeping.

Keep us posted on how you make out.