Real Estate

Buying agent with most cash back?

  • Last Updated:
  • May 21st, 2019 11:33 am
[OP]
Sr. Member
Sep 17, 2008
580 posts
77 upvotes

Buying agent with most cash back?

I am looking for a property and would like to know an agent that offer the most cash back. I have been offered 8-9K from some agents. Also Comfree.com 10k cash back for 900k house.

I would like to know if some agents offer better deal?
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280 replies
Member
Jan 13, 2017
401 posts
300 upvotes
for houses over 1M expect at least 1% back, sometimes 1.25% back
i haven't heard of agents rebating more than 1/2 of the buyer comm.
Deal Addict
Nov 22, 2004
1379 posts
364 upvotes
If you agree to do most or all the work yourself I'll be happy to top all other cash-back offers
Heatware: 9-0-0
Realtor @ Royal LePage United Realty
Member
Jan 13, 2017
401 posts
300 upvotes
what does "most of the work" mean?
like clients such as OP drive themselves to the showing?
Clueless Fox wrote:
Mar 7th, 2017 8:54 pm
If you agree to do most or all the work yourself I'll be happy to top all other cash-back offers
Deal Addict
Nov 22, 2004
1379 posts
364 upvotes
MMMPower wrote:
Mar 7th, 2017 8:57 pm
what does "most of the work" mean?
like clients such as OP drive themselves to the showing?
Yep - spend time searching for the properties they want in all the areas, drive themselves to all the properties to look at them, and pick the one they want to make an offer on. I'll just be there to sign my name on it as the agent. I'll get some commission and I'll pay whatever agreed-upon balance to the OP.

Here's the thing, if I was working for OP:
  • I'd have to spend time looking up various properties for OP and work with him to figure out what he wants/where (people want as much info as possible and change minds all the time)
  • I'd have to dig up background info on any properties the OP shortlists to see if there are any yellow/red flags that should be avoided before making an appointment, not just a list of comparables.
  • Then call and schedule appointments to pick the ones that are shortlisted even further - in this market, that means half will have sold by next day or have registered offers
  • See the place with OP and look for any yellow/red flags in person (in a condo, this means sometimes talking to the staff or people living there on my own)
  • If the property is still available then we'd have to work on the offer, negotiate it with the other side (which is just so much fun in this market) and hope it gets accepted since there are so many multiple bids. If it doesn't, and the property goes for more than the OP's budget I can't advise the OP to keep bidding. This means going to an alternate shortlisted available property or back to step 1 looking for more online.

All of the above is actually very time-consuming. And obviously I can't force the OP to sign a BRA, which means the OP could very well be working with a bunch of agents (40K+ in GTA alone) pitting us against each other for the most cash-back (his/her main interest), he could at any point change his mind (even at the point of sending an offer), for whatever reason, and I'd have to live with it. I have no way of knowing if the OP will come back to work with me in the future or not at all. Since it's what I do full-time and it's 100% commission, for all the effort I put in what exactly am I getting out of it? It's not merely a matter of an hour or two that I can do 'as a favour' to a fellow RFDer or a friend.

I have no way of knowing when my next transaction would be, how long it would take or how much it would be for until it closes, so why should I work sincerely when I'm not guaranteed the same from the OP AND I have to give back a good chunk of my commission? Bear in mind that as easy as it is for a selling agent to make money in this market, it is just that frustrating for a buyer's agent.

So, "most of the work" means exactly that - the OP does all the legwork till he's ready to make an offer on the property, and I can get the administrative formalities done for him. In return I'd be happy to send the OP available MLS listings, and he can have far more cash-back than from any other agent or comfree. He has my word.

And RFD can go back to realtor-bashing now.
Last edited by Clueless Fox on Jan 10th, 2019 11:43 pm, edited 3 times in total.
Heatware: 9-0-0
Realtor @ Royal LePage United Realty
Deal Addict
Mar 27, 2004
3079 posts
497 upvotes
Toronto
I can offer you what comfree is offering. Send me a message.
Cash rebate Realtor

Homelife Bayview

President Award 2018
Member
Jan 13, 2017
401 posts
300 upvotes
I agree with what you said, if a buyer expects cash back, then the buyer should do most of the work such as

1. drive him/herself at all times
2. research on houses, know the area, know the market
3. research on sold price, don't bother the realtor to look at house costs 1.5M when their budget is 1M etc
4. sign BRA, i think signing a BRA before the 1st offer is very fair.

I don't bash realtors, i think nothing is free, and time is money.
If a realtors takes you to 30 houses and made 30 offers of course that realtor deserves the full comm.


Clueless Fox wrote:
Mar 7th, 2017 9:51 pm
Yep - spend time searching for the properties they want in all the areas, drive themselves to all the properties to look at them, and pick the one they want to make an offer on. I'll just be there to sign my name on it as the agent. I'll get some commission and I'll pay whatever agreed-upon balance to the OP.

Here's the thing, if I was working for OP:
- I'd have to spend time looking up various properties for OP and work with him to figure out what he wants/where (people want as much info as possible and change minds all the time)
- I'd have to dig up background info on any properties the OP shortlists to see if there are any yellow/red flags that should be avoided before making an appointment, not just a list of comparables.
- Then call and schedule appointments to pick the ones that are shortlisted even further - in this market, that means half will have sold by next day or have registered offers
- See the place with OP and look for any yellow/red flags in person (in a condo, this means sometimes talking to the staff or people living there on my own)
- If the property is still available then we'd have to work on the offer, negotiate it with the other side (which is just so much fun in this market) and hope it gets accepted since there are so many multiple bids. If it doesn't, and the property goes for more than the OP's budget I can't advise the OP to keep bidding. This means going to an alternate shortlisted available property or back to step 1 looking for more online.

All of the above is actually very time-consuming. And obviously I can't force the OP to sign a BRA, which means the OP could very well be working with a bunch of agents (40K+ in GTA alone) pitting us against each other for the most cash-back (his/her main interest), he could at any point change his mind (even at the point of sending an offer), for whatever reason, and I'd have to live with it. I have no way of knowing if the OP will come back to work with me in the future or not at all. Since it's what I do full-time and it's 100% commission, for all the effort I put in what exactly am I getting out of it? It's not merely a matter of an hour or two that I can do 'as a favour' to a fellow RFDer or a friend.

I have no way of knowing when my next transaction would be, how long it would take or how much it would be for until it closes, so why should I work sincerely when I'm not guaranteed the same from the OP AND I have to give back a good chunk of my commission? Bear in mind that as easy as it is for a selling agent to make money in this market, it is just that frustrating for a buyer's agent.

So, "most of the work" means exactly that - the OP does all the legwork till he's ready to make an offer on the property, and I can get the administrative formalities done for him. In return I'd be happy to send the OP available MLS listings, and he can have far more cash-back than from any other agent or comfree. He has my word.

And RFD can go back to realtor-bashing now.
Banned
Dec 5, 2015
1338 posts
444 upvotes
Thornhill, ON
MMMPower wrote:
Mar 7th, 2017 7:19 pm
for houses over 1M expect at least 1% back, sometimes 1.25% back
i haven't heard of agents rebating more than 1/2 of the buyer comm.
I don't see how any agent can give 1/2 back when from their commission they need to pay taxes and brokerage cut on it too
Member
Jan 13, 2017
401 posts
300 upvotes
there are, but usually for houses over 1.5M, and also if you sell with them.
Doubleshot wrote:
Mar 7th, 2017 11:19 pm
I don't see how any agent can give 1/2 back when from their commission they need to pay taxes and brokerage cut on it too
Member
Jan 13, 2017
401 posts
300 upvotes
today i got a big flyer from this Russian team in Vaughan, big fat 0% listing comm if you buy and sell with them. so they only make $$ the 2.5% buy.

Doubleshot wrote:
Mar 7th, 2017 11:19 pm
I don't see how any agent can give 1/2 back when from their commission they need to pay taxes and brokerage cut on it too
Newbie
Apr 8, 2010
47 posts
15 upvotes
A question on the cash back, do I need to claim the amount as an income when filing tax return?
Member
Jan 13, 2017
401 posts
300 upvotes
from what I understand you do not, think about it, it is your money to begin with.

yalewon wrote:
Mar 7th, 2017 11:54 pm
A question on the cash back, do I need to claim the amount as an income when filing tax return?
Banned
Dec 5, 2015
1338 posts
444 upvotes
Thornhill, ON
MMMPower wrote:
Mar 7th, 2017 11:35 pm
today i got a big flyer from this Russian team in Vaughan, big fat 0% listing comm if you buy and sell with them. so they only make $$ the 2.5% buy.
That's pretty high take on their part..2.5℅ on purchase ..When a they're giving up is 1℅ on selling which is less work than buying . Selling still need to pay the other agent

Much better off getting 1℅ to sell and around 0.75-1.5℅ Cashback on buying

That flyer you got is only offering you a 1℅ Cashback on selling and nothing from buying esp when buying is going to be bigger transaction...No way they sell your million dollar home for nth and OK with making 2.5℅ on a 300k condo buying lol
Member
Mar 3, 2016
381 posts
217 upvotes
s0n1c wrote:
Mar 7th, 2017 5:28 pm
I am looking for a property and would like to know an agent that offer the most cash back. I have been offered 8-9K from some agents. Also Comfree.com 10k cash back for 900k house.

I would like to know if some agents offer better deal?
Most if not all agents offering cash back will tell you they will do only the very basic service for you if they will give you cash back. And the highest cash back agents will probably only sign offer papers and do nothing else, which is fair. However, the best route for you is to get a real estate lawyer who will draft and send the offers. They usually take a nominal fee and you usually work with one of their assistant for the offers. For mine, they took $200, including all back and forth counter offers. I doubt any agent will take that much and offer you the rest in cash back. You would need a real estate lawyer for later (to do all ownership paperwork) anyway so why not get one earlier in the process? Plus they may package a good deal together with the closing fee they will charge. Searching for properties and driving yourself to them should not be that difficult. You will be able to get an independent home inspector (not one working with the agent to get the deal closed) to make sure the home doesn't have any red flag. They charge around $300-500. I would never make any offer without inspection and financing condition not matter how hot the market is or you are taking a high risk just for the sake of home ownership. If you find an FSBO home (which are becoming more popular), you, as a potential buyer without agent, will be golden. Actually, you might be in a better position even in cases you are making offers on houses listed by realtors since there is no buyer's agent commission involved and the seller won't have to factor in this commission in the selling price they are willing to accept. Good luck!
Last edited by Sam9876 on Mar 8th, 2017 8:25 am, edited 1 time in total.
Deal Fanatic
Dec 11, 2008
9229 posts
1051 upvotes
My agent gave us 1% cash back.

She did do most of the work and sent us listings and took us to view the properties etc.

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