Traditional real estate agents are understandably threatened by commission rebates and any other forms of discounting.
It would be naïve to say that traditional real estate agents who control virtually all of the listing inventory
and buyer base don't mind having their livelihoods disrupted.
Some rebate brokers will try to explain their way out of this one by saying that listing agents don't mind the buyer receiving a rebate,
because it'll be easier to get a deal done.
They'll say the only agents who are threatened by commission rebates are full commission buyer's agents.
This is a logical fallacy because every listing agent is a buyer's agent.
Agents work with both buyers and sellers,
and it's much too deceptive to claim that traditional agents won't care about half of their business being disrupted.
Why Are Buyer Commission Rebates so Rare?
Discount brokers haven't taken over primarily because real estate brokerage is a two agent model.
Unlike the travel agent industry which operated under a single agent model before being disrupted,
in real estate you need the cooperation of other agents to complete a deal.
90% of real estate transactions are still done today between a seller's agent and a buyer's agent.
This means that real estate agents need the cooperation of other agents to complete a deal.
However, most discount brokers spend time making noises about how traditional brokers are overpaid and how they'll work for less.
Yet, when it's time to try to do a deal,
they'll go hat in hand to the traditional brokerage community and ask for a handout.
Unfortunately for consumers,
rebate brokers are largely boycotted by traditional brokers.
It doesn't take much for a listing agent to Google an unfamiliar broker and to quickly figure out their scheme.
Tipping off the seller and the listing agent in this manner can cause a great deal of harm for buyers,
especially in a hot seller's market with many competing bidders.
Given other bidders to choose from,
it's not hard to imagine that a listing agent will prioritize an offer from another agent who isn't out to harm the industry.
Remember that listing agents have a lot of leeway on when and how they present offers to the seller, if they do so at all.
Getting a Buyer Agent Rebate Safely
The only way to get a buyer agent rebate safely is to work with a traditional broker with great working relationships with other brokers,
and who most importantly never openly discounts their services.
In other words, you should work with a traditional broker who has discreetly agreed to give you a buyer agent commission rebate.
An alternative approach is to start a conversation with one of Hauseit's partner brokers who have already agreed
to discreetly rebate you the majority of their buyer agent fee.
All of Hauseit's partner brokers are established,
experienced traditional real estate brokers who never openly discount their services and thereby tarnish their reputations.
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