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Replies (11)
- Christine McGinty, "whitemountainagent"
- Contributions:273
What are you getting a rebate on? Buyers don't generally pay fees to the agent in Arizona and I'm an Arizona agent so I am aware of that. Sellers pay the commissions unless your agent is charging you fees for being your buyer's rep.
Much depends on how long you've been working with the agent. Has he/she been searching for properties and sending you listings? Has that agent shown you properties? How well do you connect with this agent and do they have a good grasp on what you are looking for? Agents don't get paid until they sell a house so you are getting free consulting, guidance and research until they close a deal. You then tell the agent you're going with another agent after they have spent their time and possibly money taking you around. It's not surprising you haven't gotten a call back. Most seasoned agents won't waste their precious time working with a client that appears not to have any loyalty to them and may jump ship mid stream for another agent.
You of course can do whatever you want and use whomever you wish, but try to find an agent you are comfortable with stick with them. More and more agents are avoiding this by having the buyers sign an Exclusive Buyer Broker agreement which binds them to the use of their services for a period of time. Of course before signing an agreement like this, make sure you have a good client/agent relationship.
Before you go any further and kick your agent to the curb, which you may have already done, you need to inquire what the $950. rebate is all about. No rebate is worth it if you can't find an agent you work well with or if they are asking for fees you normally shouldn't have to pay.
Much depends on how long you've been working with the agent. Has he/she been searching for properties and sending you listings? Has that agent shown you properties? How well do you connect with this agent and do they have a good grasp on what you are looking for? Agents don't get paid until they sell a house so you are getting free consulting, guidance and research until they close a deal. You then tell the agent you're going with another agent after they have spent their time and possibly money taking you around. It's not surprising you haven't gotten a call back. Most seasoned agents won't waste their precious time working with a client that appears not to have any loyalty to them and may jump ship mid stream for another agent.
You of course can do whatever you want and use whomever you wish, but try to find an agent you are comfortable with stick with them. More and more agents are avoiding this by having the buyers sign an Exclusive Buyer Broker agreement which binds them to the use of their services for a period of time. Of course before signing an agreement like this, make sure you have a good client/agent relationship.
Before you go any further and kick your agent to the curb, which you may have already done, you need to inquire what the $950. rebate is all about. No rebate is worth it if you can't find an agent you work well with or if they are asking for fees you normally shouldn't have to pay.
- Kelley Koehler, "Housechick"
- Contributions:143
Hi there - I've had clients who wanted to use the USAA program.
The mechanics of that $950: Basically, a USAA approved agent is one who has signed (or their brokerage has signed) an agreement to pay USAA part of the commission. It's like a referral source of business for that agent/brokerage, potentially. I'm not sure what current cost is, but for me, it was going to cost 35% of my commission for a client that had found me online, was perfectly happy with me, and just discovered this USAA benefit the day before we were going house hunting. USAA in no way sourced this client for me.
On a $250k purchase, they were going to take $2700 from me and give my client $950. Which is dumb, all around. Since I had a good relationship with my clients, since they were happy with me but felt conflicted over really wanting that rebate, I sat down with them and explained how it all works. Once they understood where that money comes from, we all agreed that me giving them that $950 as a rebate at closing was a better deal for all of us. I'd rather give up $950 to keep a client and keep them happy then lose the entire deal. And I'd rather give up the $950 than the $2700.
You should pick an agent you trust and enjoy working with, regardless of the rebate, because you can probably work that out some other way.
The mechanics of that $950: Basically, a USAA approved agent is one who has signed (or their brokerage has signed) an agreement to pay USAA part of the commission. It's like a referral source of business for that agent/brokerage, potentially. I'm not sure what current cost is, but for me, it was going to cost 35% of my commission for a client that had found me online, was perfectly happy with me, and just discovered this USAA benefit the day before we were going house hunting. USAA in no way sourced this client for me.
On a $250k purchase, they were going to take $2700 from me and give my client $950. Which is dumb, all around. Since I had a good relationship with my clients, since they were happy with me but felt conflicted over really wanting that rebate, I sat down with them and explained how it all works. Once they understood where that money comes from, we all agreed that me giving them that $950 as a rebate at closing was a better deal for all of us. I'd rather give up $950 to keep a client and keep them happy then lose the entire deal. And I'd rather give up the $950 than the $2700.
You should pick an agent you trust and enjoy working with, regardless of the rebate, because you can probably work that out some other way.
- Erika Phelan- Buyers Agent, "Orlando Buyers Agent"
- Contributions:103
USAA is trying to encourage you to use one of the agents that will kick back money to them...it is only in the best interest of USAA.
A good agent can probably save you more than the $950, so interview both agents before you decide.
Erika in Orlando
A good agent can probably save you more than the $950, so interview both agents before you decide.
Erika in Orlando
- Eric Egeland, "Eric P. Egeland"
- Contributions:491
I agree w/ Erika, a good agent will save you more money in the transaction than a kickback from a referral company.
- Michael Pickett, "Occasio Realty"
- Contributions:91
If you don't want to call him back, that's obviously your decision if you feel fine with it. What would you want if you were him? Anyhow, at least you communicated that to him. My guess is that he would match the USAA offer to keep your business. Best of luck!
- Caroline Choi, "Caroline Choi"
- Contributions:98
Luke, to be honest, I don't know what kind of an agent you would be referred to via a USAA program. I understand that you'd want to save $950 bucks - who wouldn't?? At the same time, talk to the other agent, see how he is willing to handle it. If you liked him and trust him, you might find this $950 is negligible in getting the type of service you want. Good luck, Caroline
- Jennifer Dodge, "Destin.Fl.Realtor"
- Contributions:271
USAA has a movers advantage program that rebates money to buyer and sellers. Trust me, nothing is free. They use the extra money they charge you for other items like a pre-approval fee, higher loan rate, ect. to rebate this money back to you. This is your money they are giving back to you, but less than they charge.You will come out better if you choose your own agent and motgage company to save money. I personally have gained business that would have otherwise gone to USAA. Be advised that you are not getting the best deal. The Realtors they choose are not chosen because they are the best at what they do. They are chosen because they discnout thier services.Most of the time if you choose your own agent you will get better service. Also check the rate USAA bank is giving you. Check the closing cost for the loan you are applying. Another agent will help you save thousands of dollars in closing costs and can most likely get you a .25% point reduced on your mortgage. Call they agent back and speak to him/her. It never hurts to know all your options. If you still choose to use USAA, you will have all the facts.
- lukeferrel
- Contributions:4
sticking with my old agent. I talked to him about it and he agreed to match the offer from USAA and i already feel comfortable with him. Thanks for the advice
- Hamp Yonce, "Zilluminati"
- Contributions:3463
How can USAA collect RE commissions?
- broker_GRI
- Contributions:3454
Probably by holding a RE lic.
Hamp...It is so good to see you again.
Hope all is well and prosperous for you!
Hamp...It is so good to see you again.
Hope all is well and prosperous for you!
- John (Jack) Herman, "Buyer Agent John"
- Contributions:54
The agent you choose will change the outcome of where you live. They will also effect how much you get for your money.
Ask yourself, which credential should you use to select an agent...because he can help you make a critical purchase with enhanced effectiveness? ....Or becuase he agrees to give you back part of his paycheck?
Which is the correct criteria?
Which choice can ultimately save you money or cost you?
IMHO....Find the best agent you and you make the best possible purhcase. Failing to do that can be very expensive.
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