Buyer HOWTO Guide: Get >2.0% Commission Rebate
Here are the steps:
- DO NOT SIGN WITH ANY BUYER AGENT. DO NOT SIGN ANYTHING. DO NOT SIGN ANYTHING.
- Use your favourite website: realtor.ca, housesigma.com, bungol.ca, redfin.ca, and find property you like.
- Contact seller agent directly, you can email the seller agent directly on realtor.ca (tip, use the MLS listing #). Schedule a visit. They will always agree, and they will NEVER ask you to sign anything (other than COVID liability forms).
- Visit the property, talk to the seller agent, learn about the property, make "friends" w/ the seller agent, ask them what seller is looking for (selling conditions, sometimes they will even hint at the lowest possible price seller is willing to take), show them you are a serious buyer. Even if you're not interested in the property, be honest, let them know this property isn't for you at the visit, tell them why, or if you think property is overpriced, name what you think it's worth to them. When they know you have no buy-agent, they'll most likely offer to be your (buy-side) agent, get their contact information and befriend them.
- Repeat Step 2-4, until you find a property you are ready to make an offer.
Here is what you do at offer time:
- You can negotiate directly w/ seller-agent, shave 2.0-2.5% commission off the sale price. Some seller agents have offered the full 2.5%. Make offer, profit.
- If you do not want the seller agent to represent you, it's time to call all those contacts you made earlier. Tell them you are ready to make an offer.
- There are now several ways to proceed-- This easiest way to make it work is, tell the agent you have negotiated w the sell side agent to shave 2.0% commission, but you "like them more", so you are willing to give them the business, ask them to name a cashback offer. Do this for all the contacts you made, you'll find some even offering more than 2% cashback. Chose the one that you actually like and proceed to make an offer.
- Make offer, profit.
Your money is hard earned! Get the maximum commission back! Even for the agents, its really good deal for them. For them to prepare an offer, its literally fill in a PDF form. (e.g., for a 1m deal, 0.5% commission is 5k for a few hours of work).