Real Estate

% cash back to ask from buyer's realtor

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  • Sep 26th, 2017 10:50 pm
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[OP]
Deal Addict
Jun 29, 2007
4738 posts
1421 upvotes

% cash back to ask from buyer's realtor

I think it depends on how much time the buyer's realtor spends on the buyer and what his direct costs with me are.

I am always cognizant of amount of time the realtor is working for me and what a reasonable $/hr in commission the realtor deserves.

I am thinking about 50% cash back or $300 - $800 per hr as guideline is fair.

How often do people ask for % commission cash back from buyer's realtor? My guess is it is less than 50%.

If any realtor in the Vanc area is willing to give me top notch competent service and 50% cash back, please send me a pm.

I already have 2 newer or not so busy realtors offered me 50% cash back. Not sure if they are good with negotiating or dealing with some of the BS that sometimes happen in RE.

I am thinking of putting an offer in. $1 million sure doesn't get you much in Vanc area. Not interested in surrey, or anything east of Burnaby.
23 replies
Sr. Member
Dec 12, 2007
642 posts
238 upvotes
Toronto
looking for a realtor that gives cash back for buying a home

PM me
Deal Addict
Jul 27, 2017
2180 posts
938 upvotes
this is new to me.

why & under what circumstances would a buyers realtor give you cash back?

are you purchasing or selling?

On the basis that you are a purchaser that has your own agent going in to buy a property it's your agents job to a) get the max commission possible without losing the offer. On say a $500,000 sale, commission split between two brokers & agents, why would your buying agent give you money - they live & die on commissions, take the good & bad months & average the pay out by the work/effort to produce that income.

maybe & I say maybe if you are negotiating a deal paying at the asking price or more than the asking price that the agent (is it legal to do this) may buy you a coffee.

cashback from an agent, I don't think so, I may be wrong
Deal Fanatic
Feb 22, 2011
7300 posts
7785 upvotes
Toronto
Every property I have purchased I got 1% back as cash. I think it's a lot more common than the industry wants people to know.
Deal Addict
Jul 27, 2017
2180 posts
938 upvotes
rjg4235 wrote: Every property I have purchased I got 1% back as cash. I think it's a lot more common than the industry wants people to know.
can you please explain the steps how you negotiated this, was there paperwork involved, was it in the offer, a handshake, did the seller & the brokers OK it?
Deal Fanatic
Feb 22, 2011
7300 posts
7785 upvotes
Toronto
porticoman wrote: can you please explain the steps how you negotiated this, was there paperwork involved, was it in the offer, a handshake, did the seller & the brokers OK it?
I just said I will only use an agent who gives me 1% back. I asked 4 agents and 3 said no, one said no problem. When I made the offer there was a section on the form that said I would receive part of it back. I don't know if he had to do anythign on the back end.
Deal Addict
Jul 27, 2017
2180 posts
938 upvotes
@ post #6 thanks

What was the 1% cashback that you received on....was it 1% on the total commission paid by the seller or only 1% on the commission that the buyer agent received?
Sr. Member
Dec 12, 2007
642 posts
238 upvotes
Toronto
rjg4235 wrote: I just said I will only use an agent who gives me 1% back. I asked 4 agents and 3 said no, one said no problem. When I made the offer there was a section on the form that said I would receive part of it back. I don't know if he had to do anythign on the back end.
Just curious, when you negotiated for cash back. Did the realtor provide you with the usual service? Booking appointments, finding properties, negotiating the deal etc? Or since you asked for 1% cash back, they simply did the barebones of putting an offer in with minimal assistance?
Deal Expert
Jan 15, 2006
15308 posts
12764 upvotes
Richmond Hill
No decent rep would sell themselves short unless they are desperate. There's a reason why 3 out of the 4 wouldn't do it...
Sr. Member
Jun 7, 2017
944 posts
677 upvotes
BC
Hahaha OMG this is craazy! I sense a scam these RFD posters are trying to pull to make this a "thing". Total BS. Mods, please delete thread.
Deal Addict
Feb 14, 2003
1991 posts
66 upvotes
GTA
I think the 1% cashback is 1% of sold price, i.e. the buyer will receive 1% of the sold price.

If the house is sold $1 million, the seller will receive $10,000 cash back.
porticoman wrote: @ post #6 thanks

What was the 1% cashback that you received on....was it 1% on the total commission paid by the seller or only 1% on the commission that the buyer agent received?
Deal Addict
Feb 14, 2003
1991 posts
66 upvotes
GTA
There are quite a few agents that will do it. Keep asking, you'll find a lot.
EP32k2 wrote: No decent rep would sell themselves short unless they are desperate. There's a reason why 3 out of the 4 wouldn't do it...
Deal Expert
Jan 15, 2006
15308 posts
12764 upvotes
Richmond Hill
elmst200 wrote: There are quite a few agents that will do it. Keep asking, you'll find a lot.
That's not my point.
Newbie
Nov 12, 2006
4 posts
2 upvotes
Step 1: Find out how much agent has to pay to brokerage
Step2: you only need two services a. Ask for comparables b. Take them at the time of final offer
Step3: you do your own research, check properties by yourself etc. Never do bidding war, don't sign BRA, always do home inspection.
Step4: instead of asking cash back you decide how much you want to pay him. For example 1M property commission is 25k. Give them 5 to 10 k you keep the rest.
Most important: real estate agents, mortgage brokers etc are not your friend. If they are don't work with them. Get everything in writing
Some agents will work with you some don't. Just keep looking.
Sr. Member
Feb 10, 2008
634 posts
281 upvotes
Toronto
We used One Percent Realty - http://www.onepercentrealty.com - when we bought. About a week after closing, we received a cheque in the mail for 1% of the selling price. And we had a great agent...we did most of the searching ourselves on MLS, but being very picky, we would have done the legwork ourselves regardless of what agent we used.

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