Then We Rebate Commissions

Our 25% commission rebate means that, at closing, we forward thousands of dollars of seller-paid commissions to our buyer clients. What a concept! How do we do this? We are structured to provide superior full service in a much more cost effective way than our competitors can. Why do we do this? Frankly, we feel that commissions are too high. Why shouldn’t you the buyer have the opportunity to lower commission costs in the real estate transaction?

For all non-distressed transactions (distressed includes short sales, foreclosures, and REO’s), we’ll share our commission, which is always paid to us by the seller, with our buyer client.

For example, if the final selling price at closing is $500,000 and our cooperating commission split for this example was “2.5% less $250”, the amount we collect is {($500,000 x .025) – $250} or $12,250. The 25% rebate would come to $3062.50. Of course as the example selling price goes up, the rebate becomes even more substantial.

The cost of acquiring the home is lowered by this amount. Business models such as ours are praised by the United States Department of Justice for lowering the cost of home ownership. We are functioning legally and morally and the consumer is the beneficiary.

Going one step further, whenever special additional commissions are offered to us (via the MLS, from the listing broker to the cooperating broker) we will immediately announce them (as soon as we learn of them, even though the client can’t see them) and then we’ll forward 100% to our buyer client at closing. We believe that whenever these special incentives exist they belong to the buyers and should not otherwise serve as possible conflicts of interests to agents.

Note that for distressed transactions, we will not contractually offer a commission rebate up front. But we will nevertheless review the transaction once it closes to determine, based completely on our determination, if some rebate to the buyer client is warranted and possible. We take this position here only to protect ourselves and we won’t otherwise insert contract language that guarantees that the buyer client pays us if our minimum required compensation is not paid to us by the seller’s broker. Distressed properties usually require tremendously more work and sometimes the lender can reduce the amount of real estate commissions paid out, beyond the control of the brokers involved.