Buying agent with most cash back?
I would like to know if some agents offer better deal?
Mar 7th, 2017 5:28 pm
Mar 7th, 2017 7:19 pm
Mar 7th, 2017 8:54 pm
Mar 7th, 2017 8:57 pm
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.
Mar 7th, 2017 10:27 pm
Mar 7th, 2017 11:10 pm
Clueless Fox wrote: ↑ 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.
Mar 7th, 2017 11:19 pm
Mar 7th, 2017 11:32 pm
Mar 7th, 2017 11:35 pm
Mar 7th, 2017 11:54 pm
Mar 8th, 2017 12:00 am
Mar 8th, 2017 12:02 am
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
Mar 8th, 2017 8:25 am
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!
Mar 8th, 2017 8:33 am