The notion that an agent that â€œrebates commission = subpar customer serviceâ€ or is less experienced is completely false. Some agents will use the "you get what you pay for" argument, but this is simply a scare tactic to try and convince you that by using an agent that rebates you are automatically doing yourself a disservice. The truth is - many agents do not truly keep 100% of what they earn. Out of their commission, most pay desk fees, brokerage fees, advertising fees, etc. Depending on their model, some actually only keep 75-80% (and sometimes less) of what they are paid by the cooperating brokerage.
In the interest of full disclosure, I work for a company that allows me to keep 100% of what I earn, minus a small fee (under $500) per transaction. Other than that, I pay an additional $40 per month, for desk/processing fees. My company doesnâ€™t have the additional expenses that other brokerages choose to take on to generate extra business for their agents, like TV advertisements. I also have minimal support, no â€œfloor timeâ€, etcâ€¦â€¦I have the freedom (and challenge) of having to truly generate almost ALL of my own business. Since my brokerage fees are minimal, I do offer my clients a small rebate as a thank you - however this amount is much less than what most other agents pay their brokers per month. My point is, generally ALL agents will "rebate" or forsake a portion of their commission. The question is - are they giving it to you........or to their broker.
At the end of the day - rebate or no rebate - the most important thing is to choose a full service agent that you trust, and that has the competence and experience to get the job done. Hope that helps!
Good luck and call me or any one of the capable agents that have answered your question.
JJ, my service platform is second to none and includes personal showings, negotiation strategies, inspection consultation, etc. I have a rolodex full of service contacts to help you through the process...inspectors, attorneys, contractors, etc.
My service platform for my Home Buyer Program is very competitive, send me an email and I will respond with details. In addition, I exhibit local market expertise and am located in Naperville, IL.
Offering a rebate to buyers is just one of the tools agents use to attract buyers to work with them.
It does not necessarily mean that the agents are discounting their services but it's only a means to help them grow their business.
Good luck to you!
Prudential Connecticut Realty
I have heard arguments on both sides of the issue. Some agents offer rebates to get business, while the agents that don't feel that offering rebates lowers the value of their profession, and they give arguments to support that notion.
Rebates are usually given to you at closing. Some percentage of the agent's commission is given to the buyer as a credit on the HUD-1, which is the accounting sheet detailing all money entering and leaving the transaction. Essentially, it reduces the amount of money you need to bring to closing. This is usually done by written agreement.
On that note, whatever rebate Redfin is offering you on their website, I'll beat it. Give me a call or email me today so we can talk about it and about your needs.
Managing Broker, Able Realty