Rebates? Do you do REBATES?

by Mike Yeo on July 10, 2013

Do you do REBATES?

As you may know, real estate transactions are all about negotiation. We negotiate on price of the house, when we close, where we close, what to repair and a lot more. One question that we get from customer (not client yet. There is a differences between customer and client in the Real Estate world) is “I would like to buy a home for my family. Do you give rebates?”

As a company we do not do rebates to our clients. We have our reasons for not wanting to do that. Our polite answer to that question is “Sorry, we do not do discounted work”

Some would ask us “What do you mean by discounted work?” Well, let’s see. Realtor make money by earning a commission when a transaction closes. When you ask them for a rebate, you are essentially asking them to give you some of their money that they will be making.

I am a firm believer that we pay for services that is rendered. Some of you, who are reading this, may argue that, Realtor don’t do much since you do all the searching online and they just open doors. Some part of the argument is true. You do look online. Does that entitled you to a rebate?

When you find a Realtor that agrees to give you a rebate, do you ever wonder what are they not doing for you? How do you feel if your boss comes to you today and say:

“Jim, for this month’s salary, I am going to take a percentage for myself but I expect you to do your work just like you are getting paid in full”

How would you feel? Would you give your 100% effort? Would you have a good relationship with your boss?

The truth is that Realtor are in business to make money. When you ask for a rebate, you are tapping into their money making process. How do you think they will feel?

We don’t practice this because of 2 good reasons:

  1. Respect. We feel that if you respect your realtor and vice versa, you will built a good respectful relationship. It is crucial to have a respectful relationship if you are going to work together for at least 30 days before you close on your home. Just like a mechanic, you want to keep a good realtor when you find one. You might need their advise down the road.
  2. Trust. We feel that when working together, both party needs to be able to trust each other. Asking for rebate on the first transaction is like giving someone a bad first impression. Start off with a bad foot, is not the way to go when you are putting your life’s largest investment in the hand of someone you just offended. If they provide you a good service, they ought to be paid.  If you do more businesses later (buying investment, selling your home to move up or down in house in the future), then it would not be as bad to ask.

If you find one that agrees to do rebate, ask them what do they not do for you? What should you expect from a discounted work? Do they show you houses? Will they be there for inspections? Will they be there for a walk through? Can you get a hold of them during the entire time of transaction? Do they response to you in a timely manner?

You are making a big decision in providing your family a home in FRISCO TX, your largest investment in your life  and WOULD YOU WANT SOMEONE TO NOT GIVE YOU THEIR 100%? Something to think about.

So, if you are looking to buy a house, interview some realtors. Pick the one that you feel you can trust and you respect. It is not all about the money. Remember, you get what you pay for!

Rebate = Cheap

Cheap = Less Quality 

Therefore,

Rebate = Less Quality

Realtor who read this and do not agree is just fooling themselves. No one is in the business to not make money. Try walking into any business and ask for them for their free core service.

 

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