|
|
 |
Rebate Frequently-Asked Questions
|
Rebate Frequently-Asked Questions
How can you afford to give rebates?
Metro Home Connection Realty is an exclusive buyer's brokerage designed specifically around the concept of providing cash rebates to our home-buying clients. By utilizing technology effectively, controlling overhead costs, and allowing our clients to conduct their own home search at their own pace, we can afford to provide our clients with a cash rebate equal to 1% of their home's purchase price.
Is providing rebates to home buyers legal?
Absolutely, and anyone who says it isn't has been misinformed. While Minnesota law prohibits the sharing of commissions for referrals from unlicensed persons ("bird-dog fees"), it expressly authorizes real estate brokers and their salespeople to share their commissions with the persons whom they represent in any given transaction. (If you have further questions on the legality of rebates feel free to contact the attorney-owner of Metro Home Connection Realty, Kevin Huntington, at 612-860-4082, or by clicking here.)
This sounds too good to be true. What's the catch?
There is no catch. Metro Home Connection Realty was designed around the concept of providing rebates to our home-buying clients. We have nothing to "sell you on" except our exceptional service. There are no strings or hidden costs. Simply use a Metro Home Connection Realtor to buy an MLS-listed home, and receive a 1% cash rebate off of the purchase price - that's all there is to it.
Isn't it true that you get what you pay for? What am I missing out on by using Metro Home Connection?
By using Metro Home Connection Realty, you can expect exceptional service as well as a 1% cash rebate on the purchase price of your next home. You sacrifice nothing. Metro Home Connection Realty is able to provide all of the services for home buyers that you might expect from any other realty company out there. The only difference is that our clients are encouraged to exert more personal control over the home buying process, which helps us to operate more efficiently.
(Compare MHC to the big companies- click here.)
My last Realtor told me his services were free, but charged me a $314.00 Broker's Administrative Fee. What does MHC charge?
Nothing. Metro Home Connection Realty does not charge a Broker's Administrative Fee. The idea of charging an additional fee for administrative services is a relatively new concept which has been rapidly adopted by the majority of large realty companies as a way of padding their income. Most clients simply go along with this since they believe they have no choice.
Why do you choose to share your commission with your clients?
Metro Home Connection Realty was created to meet a market demand that, up until now, has been conveniently ignored by the major brokerages in the traditional residential real estate industry. The technology that allows home buyers to perform much of the initial home search on their own has been around for a while. While the larger real estate companies have remained entrenched in the old ways of doing business, Metro Home Connection Realty has embraced these innovations and has designed a business model that recognizes the elevated role that today's home buyer now plays. As a result, we are able to operate more efficiently and are willing to pass those savings on to our clients in the form of a buyer's side rebate.
Why isn't anyone else doing this?
The vast majority of real estate agents in the metro area work for large realty companies that are often part of even larger organizations. These companies own or lease large office buildings in prime locations, they have numerous staff members on their payroll, and they have multiple layers of management through which they must divide up their profits. In order to meet these tremendous overhead expenses, the agents working for these companies are required to pay expensive monthly desk fees, or give up to half their commissions over to the brokerage. If these agents were to give large rebates back to their clients, many of them wouldn't have any money left over for themselves.
How are Realtors paid? - I've never really understood exactly.
When a house is listed for sale with a licensed Realtor, the seller signs a contract promising to pay the Realtor a percentage of the purchase price, which usually varies between 5 and 7 percent. To gain exposure for the property, the listing Realtor will place the home on the Multiple Listing Service, or 'MLS,' which is a computerized database of available properties that is used by other Realtors in searching for homes for their home-buyer clients. To attract the assistance of buyer's agents throughout the MLS region, the listing Realtor will offer a portion of his commission, referred to as the 'buyer's cooperative commission,' to any licensed Realtor who brings a buyer for the property. The buyer's cooperative commission percentage is stated on the agent version of the MLS report and typically ranges between 2.7 and 3 percent of the home's final purchase price. When the house is sold, the listing agent's company takes in the original commission minus the buyer's side commission, which is paid out to the buyer's agent's company. The seller's Realtor and the buyer's Realtor will each then receive a split of the commission taken in by their respective companies.
If I buy a home on my own without using a Realtor at all, I'll be able to keep the entire buyer's side commission for myself, right?
Wrong. Fee splitting between real estate professionals is a practice that was designed to help facilitate the sale of homes between brokerages. By offering a portion of the commission to a buyer's agent, the listing broker can attract the assistance of buyer's agents from all the other realty companies in the area to help sell the listing. In return, the listing broker is obligated to pay out a percentage of the commission to the cooperating agent. If you decide to purchase a property without using a licensed Realtor, the listing agent is entitled to keep the entire selling commission for himself. Not only will you not receive any of the commission, but without the assistance that a buyer's agent can provide with pricing and contract negotiations, you may very well end up paying more. The bottom line is this: When you use an average buyer's agent, you will receive valuable assistance; When you use a Metro Home Connection buyer's agent, you will receive valuable assistance plus a 1% cash rebate!
I want to earn a 1% rebate on the purchase of my next home, what's my first step?
Give us a call at 612-860-4082 or drop us an e-mail and introduce yourself. Feel free to ask us anything else you'd like - we're always here to answer any home-buying or rebate-related questions you may have. Even if you're not thinking of making a move for several months, we'd be happy to further explain the home-buying process and set you up to receive regular updates on just-listed properties, if you wish.
|
|
|
