How Cash Back Rebate works in Real Estate?
To simplify how Cash-back Rebate works for buyers client, lets go through this scenario:
You submitted an offer on a property was listed for $500,000 through one of the PPS Realty Realtors. The seller/ listing Brokerage offered a commission of 2.5% of the selling price which is $12,500, and lets assumed this property was selected after 12 showings. PPS Realty would share 50% of the commission received from the seller/ listing brokerage which is $6,250 after successful closing, meanwhile we will continue to provide full real estate service and consultation till closing date as required by RECO from Realtors.
PPS Realty Cash-back rebate system works on efforts equal rewards basis means the more number of showings the client requires the less Cash-back rebate paid to the buyer client. Example:
Clients gets upto 20 Showings PPS pays 50% rebate of the commission
Clients gets upto 30 Showings PPS pays 40% rebate of the commission
Clients gets upto 40 Showings PPS pays 30% rebate of the commission
Why we do it?
Because we listen to our clients, in fact 6 out of 10 clients we meet are looking for Cash-back rebate to help them with increasing cost of purchasing property, and it’s happening in the market but no one advertise it. We are fully transparent about the entire process.
No long term agreement with clients.
As required by RECO we have to sign Buyer Representation Agreement (BRA) as a service agreement between the brokerage and the client upfront to outlines scope of services and the Cash-back rebate details, however unlike other Realtors we do not force the client to sign long term agreement and accept a termination on short notice, because we have the confidence in our outstanding services and unique system we provides.
Click here to view sample of copy of BRA service agreement.