Rebating is legal in approximately 41 states.
We don't have to agree with that concept, but there's no need to attack the Poster and be rude....or denigrate those who have adopted that business model.
To each his own.
My personal opinion of why agents may offer rebates is just that...........personal.......I see no reason to share it in a public forum, plus, imo, it makes you look rather strident and banal when throwing out those cliches like "you get what you pay for".
The poster simply asked a question.......if you're not in Chicago, or are, and not interested in working with him on those terms.......then just say no!
You are a unique client, and life is short enough that if there's only one house in the world that will make you happy and you just want to buy it, then have at it.
Outliers are interesting people, but they do not keep the doors of businesspeople open. Most people are best served by real estate agents, and that's why there's a million of us nationwide.
You do not have to be an idiot to use a real estate agent. In fact, you have to be somewhat smart, because even in this economy, the price of homes requires that you have some type of employment that requires intelligence, skill, and judgement.
The overwhelming majority of people do not have the time to catch up to a professional real estate agent's skill and networking level. Sure, you COULD learn all about homes, get a license, learn how to evaluate inspectors and lenders and all of that . . . meanwhile, we're learning more about homes every day . . . catch me if you can!
Anyway - the real point is that Trulia is to be congratulated for providing a forum for you to obtain the services you required.
Glad it has worked out for you so far.....hope you have a smooth trip to the closing table...
Enjoy your new home!
ps just curious - if it hadn't worked out for you with this particular home.........would the agent have continued to work with you offering a 50% rebate, or might that figure have changed if more time elapsed before successfully finding and buying a home?
Within 30 minutes of posting this I had at least ten offers in my email. Three went as high as 50% of the commission rebated. I think I could have bargained for more but did not. I chose the 50% offer that seemed like the best agent.
I visited the house three days later. On day 9, I visited for a second time. This was the only house I ever saw in person. On day 13 I made an offer. On day 16 I had an accepted offer. The inspection period was a little rough but we have come to an agreement with the seller over inspection items.
For those of you who reply that the realtors job is not to open the door but to guide you through the process, I would point out that you are asking about $700 an hour for your services.
For those of you who responded that I don't cut my salary because I'm asked to do so, so why should realtors. My answer is because the market demands it. There are realtors who are willing to work for less. If you have all the work that you can handle then I guess good for you. You probably do not need to cut your rate. However it seems that most realtors are looking for clients. I also wonder if my half price offer is any less per hour than your full price clients. I'd bet that my realtor will make over $300 an hour at the conclusion of this deal. If you make $300 an hour, 50 hours a week, then you would make over 750K a year.
Also I provide consulting and other business services. I will indeed cut rates if the rate cut is justified. I have to compete just like anybody else. And even salaried employees have to compete too. I think that Michigan auto workers should have learned by now that there are auto workers elsewhere willing to work for less. There are also realtors willing to work for less.
Also I think that there should be some recognition that not every buyer is an idiot who needs there hand held throughout the process. Some of us are capable of finding homes that meet our needs, finding comps, preparing bids, negotiating bids, finding inspectors, and learning the general real estate procedures for a specific locale. I wanted a full service agent this time because it was my first time and I was not sure what to expect. Next time I am going to look to pay by the hour. If getting a license is simple enough then I would be happy to go that route.
It's just lazy to play the "stick it to the man" card against real estate brokers, who are pretty much the least "man"-like industry there is.
Almost all of us are independent contractors, free to come and go between brokerages at will, we are always in competition with each other and, regardless as to what the FTC thinks, our commissions are not fixed or standard. There's a basic price line where it makes sense to stay in business; the market won't bear more and our business (often) won't tolerate less.
Anybody who has ever been on more than three listing appointments is aware that agents compete on price. If you've never heard, "We're going with so and so because they'll (either cut the commission or add something of value to the deal)," you need to get out more!
Real estate brokers do often compete on price, and some compete on service. IKEA furniture has its place in the market, and sometimes, IKEA is all a consumer wants.
All the best,
The comments that you will be demanding less service are even funnier.
Good Luc and no complainging when you realize later that the agent you hired while demading a kick back actually did you no favors.
Seth - just out of curiosity - you gave such a lengthy response....but...you were so busy "assaulting the syndicate" (whatever that means),and venting or trying to make your point .......that I am still not sure if you were offering a "significant" rebate to the poster or not!!
So.....was that a "yes", you're interested......or a "no"?
As it stands.........Several others here (from the syndicate) already agreed to work with him!
Best of luck,
If you decide to go with a discount broker, remember that the seller is not using a discount broker; they are represented by a full time, full service professional.
1. Why don't you knock on the door of the house you want and make an offer? See what happens.
2. If listed, It may not be exclusive right to sell and owner will deal with you directly. Get a lawyer to write to the contract.
3. My fee for this advice is nothing.
But, what happened? Tell us how it goes.
I will issue you a $450 closing credit if you apply today at the website below.
Senior Vice President
The reality is that in most enterprises, you don't get a discount by doing some of the work yourself. Nordstrom's doesn't give you a rebate for knowing your own size and style. Art galleries don't give you a rebate for pointing to something and saying, "I want it." General contractors don't give you a discount for getting your own plans drawn up.
Real estate commissions are not service based, they are results-based. The states license us as salespersons or brokers, not as stagers or marketers or home showers or contract writers. The fact that we provide these services doesn't mean that we can necessarily charge for them (a real estate license isn't sufficient to start a staging business); what we can get paid for is brokering real estate.
You may think that real estate is comparable to an open-air food market in a second-world nation, but I do not share that viewpoint. I do know that in most restaurants in America, the corkage fee pretty much covers the gap between buying the wine at retail and from the bar. I am curious to find out how it works out for you, going into a local two-star restaurant with your catch of the day, asking them to fry it up.
At the end of the story, if you are to ask those of us who do not provide rebates to accept those that do, then I think you have to accept those of us who do not. I don't care either way - if somebody wants to write this person up, that's their business, and I wish them well.
Look, I'm the first one to rip on idiot buyers who come on here for free advice and want to attempt to do what a professional does. But I'm also happy to assault the syndicate which I find myself a member.
Nothing in your question is insulting the real estate industry (which, if you haven't noticed, isn't exactly hard to do). Whoever said finding the home is the easy part should increase their medication effectively immediately.
As a dedicated buyer's agent, I can easily spend months, upwards of over a year finding the right home for a client. You, yourself, have spent two years! Sure, negotiating a contract, knowing what to look for, and how to make sure the buyer doesn't get screwed is an essential part of the realtor's job. But what percentage? I'd say at least half a buyer's agent job, if not more is working with the constantly in flux emotions of a buyer in order to deliver them one of the hardest material goods imaginable...a home that meets their various needs.
If I go to my mechanic and say I've already found the problem and here's the part, I get a discount. Always.
If the plumber comes to my place and says he's going to charge me more because it's a two person job, I work with him. I'm providing material value, so my price goes down.
In many open food markets of the world, you can bring your food to the stall, say some snapper to the fishmonger, and he'll cook it for you, much cheaper than if you bought his grilled snapper.
How idiotic is this industry to lambaste you for the most reasonable request a consumer could make?
However, your job is equally difficult. An agent gets paid regardless, so what's his incentive to get you the best price. You are taking part of his (or her...sorry, blame the British grammarians) commission. So why bargain lower. The only way you will find an honest reputable real estate agent is through a trusted referral. And when that isn't available, you need to find testimonials. Juicy personal testimonials (not, "Jon Doe was great, I strongly recommend him") that stand tribute to an agent's character. Check out their website, Linkedin, various review sites.
In the future, since the odds are split that you may not get the home you want, it is probably preferable to word your request more respectfully, and you'll probably get a better selection of qualified agents.
And if it's west of Western, it's not really Ukie Village so don't get sucked into Ukie Village prices.
Anthony Cavalea IV
Managing Broker / REALTORÂ®, SFR
Able Realty, Inc.