That's a negotiated item and depends on your broker's policy as well.

I would talk with your broker in terms of options,  and pros and cons of different strategies

In Hawaii our MLS listings specify the commission that will be paid to the buyer's brokerage. I don't makeit part of the deal.

Very easily and with no problem getting those signatures!  Seriously though, your broker and your E&O insurance have to allow it (mine does).  You also need to disclose the heck out of it!  In California "Buyer holds an active California Real Estate license" would be a required disclosure.  I'd add on to the prior disclosure "and the buyer is representing themself."  I tack on that last part because out here if I'm writing something up for my family I need to disclose that "Agent is related to buyers."

As to the commission issue, you can't use it for the big expenses (like downpayment or actually buying the house, since obviously the house has to close before the money exists).  You COULD use it to cover your closing costs and pocket the remainder, however I'd talk to my accountant first to see wether the deductions I'd get from closing cost expenses would offset the additional income enough to make it worth while, or if I'm better off having no closing expenses and less income.

Personally, if all things were equal and my accountant said "flip a coin, both have the same outcome" then I'd use the commission to pay the closing costs so that would be less money I'd have to come up with out of pocket. 

Now if I was truely crazy, I'd take the remainder of the commission and put it (or a majority of it) against the mortgage principal (you MUST specify that on the check!!!!) so that I can shave a few months off the life of the mortgage (depending on the loan's payment schedule).

Pro tip: If you don't specify "Additional monies to go towards principal" the banks will 99.999% of the time automatically put it towards your next month's payment.  Funny thing, if you get more than a few months ahead, some bank's systems will freak out and actually think you're very late and start the foreclosure process!!!  I've seen it happen.

Desmond Neoh 

That's a private discussion you would need to have with your broker.

Commission applied to purchase price to help reduce cash to close.

Desmond Neoh You don't!! Check your E&O policy, you may not be covered.

I advise in lieu of commission I am lowering the sales price.  Why pay taxes on that commission?

FTHB= First Time Home Buyer. I had to Google it. Definitely check with your broker.

Gosh, I wish I knew what FTHB is .....

I do know how to write an offer though.

I used my commission to add $10,000 to the seller's NET on one of my deals I did for myself when I was competing. So I was tied for the house until I threw in my commission.

I wish I knew what FTHB was, classic mistake agents make when communicating with their clients, complicating communication with industry talk or "text message" talk over plain English.

I would write it just like i would for any buyer.

This should be discussed with your broker.  Good luck and congratulations.

The individual transaction will dictate how it's factored into the sale.

Took it off the commission the one time I purchased a lot.  All other purchases were prior to my real estate career.  I've been in my current house on that lot for 14 years.

Desmond Neoh - I think these are  two separate things. Your commision is what is disclosed in MLS.

Should not bring down the price.... (to best of my knowledge.)

I have never paid myself a commission when I sold my own house. I was fortunate that I had brokers who allowed that.  Why would I pay all those taxes?

     That's a question for your Broker, and/or a CPA or Tax Attorney.

     Me personally - as a Broker, I am going to knock down the price, to avoid Federal Income Tax on the commission.

Always ask your broker for clarifications on your state laws and broker's policy on any issues such as these.

I have ask for 0 commission and lower the price of the home that amount.

Work that out with your Broker and negotiate terms with the seller. 

We got commission off our flip we purchased for ourselves.  Our broker allows us to buy or sell one property per year without her taking the split.

there are many ways to accomplish that.... 

What Jeff Dowler CRS said...

Start here. Agents get commissions. As to how to work it, have fun.

It depends on the deal with  your brokerage.

When my husband was my broker, we only paid a commission to the buyers' agent. Now, I would discuss it with my broker and see how they want to handle it. Some brokerages won't allow you to handle your own transaction.

Check your Independent Contractor's agreement and Office Policy Manual!

Thru the years , I have used the commission as part of my DP

Left side vs Right side brain . Or I ask me myself or Irene to sign in my behalf.

Discuss with broker.

That's for the broker to decide

Meet the requirements of your broker, your lender and your state.

I have done both

A lot depends on your agreement with your broker, so it's best to check before trying to use your commission as part of the down payment and closing costs.

Listing agent- no charge may be a few hundred closing per your office policy.

Can not do dual agent.