Has a realtor approached you with a deal like this....

[big_sb]

They offer to credit their commission on the purchase of your rehab project, in return to have your listing once the rehab has been completed.

[Teksch]

I guess that is OK - though it probably would have to be disclosed if there was a loan. The problem I see is how does the agent protect himself if you decide not to give them the listing. Since a listing is a contract and one cannot be forced into a contract, what is to stop you from listing it with another brokerage or selling it yourself as a FSBO? I don't know of any broker who would let an agent do this - but maybe there are some. Let me know how this turns out.

[71tr]

If they credit their commission on the original sale of the rehab then the seller gets the benefit since he is responsible for paying the agents commission.  Of course they could convince the seller to then transfer that credit to you the buyer at closing, I suppose.  Assuming they do this then what are they getting, they forego a $ in hand today for the promise of $$ when you resell the higher value rehab.  I haven't seen this in action but would be curious if anyone has.

[DeeinAustin]

Doesn't seem like a bad offer as long as the agent isn't brand new and is an investor as well. Just do your research to make sure they're going to do more than slap the house on MLS.

[TMCG]

i don't see the benefit for the agent.  it's dumb.

i realize the rehab price will be higher, thus the commission will be higher - but what type of agreement can you strike up that will be sufficient to enforce?  it won't be a listing agreement, because you as the buyer don't own the property, so there's no contract that can be signed that would hold any weight, because buyer doesn't own anything.

what's the keep the buyer from buying the property and telling the agent to get lost - "oh i changed my mind."

unless there's an agreement signed at closing. 

OR the two parties know each other very well and trust that the other will do the right thing. 

[LoriK]

I don't understand the benefit to you, either. This really benefits the seller, as you don't have anything to do with the agent's commission as the buyer.
Unless it gets you a lower price on the property.

[big_sb]

I don't understand the benefit to you, either. This really benefits the seller, as you don't have anything to do with the agent's commission as the buyer.
Unless it gets you a lower price on the property.

The seller still pays the commission, the agent credits it back to the buyer.

As far as the listing agreement, it can be signed at the table after the closing.

I guess this isn't a common practice...