Why I Don’t Offer Cash Backs (Commission Rebates) To Pre-Construction Condo Buyers
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Sometimes clients ask me this question, “Andrew, I see that some agents are offering cash backs or commission rebates to buyers if they buy a pre-construction condo with them. Do you offer anything like that?”
Perhaps you are reading articles on my website right now because you are thinking about hiring me as your agent but you are wondering if I will give you a rebate if you hire me. I’m going to address this right now.
The Real Estate Industry In Toronto
I’m going to answer that question but first let me just preface it by saying real estate is a very competitive industry – especially in the pre-construction condo market.Â
As of writing this blog post, there are currently 37,000 members of the Toronto Real Estate Board. When I got my real estate license in 2007 there were about 27,000 members of TREB.
Let’s face it, the bar is pretty low in our industry. You can get your license in about 6 months. University or college degree not required. Experience not necessary. Pay the fee. Take the courses. BOOM: You’re a Realtor.
Many people enter into this field thinking it is an easy way to make a lot of money. The reality is the vast majority of real estate agents in Toronto are not making a living as a real estate agent. In fact, some estimates put the number of “part time” real estate agents more than 70%.
The churn rate is very high in real estate too. Every year thousands of new Realtors are licensed, while thousands of others who failed to make a sustainable career of it allow their licenses to expire.
Yet despite this reality, it is still true that many people still can and do make a lot of money as a Realtor in Toronto.
What Competition Makes Some Agents Do
The nature of the Real Estate industry- low barriers to entry with high potential income and high failure rates – is why there are so many “discount” agents. It is the only tool that many agents have to survive. They are trying to “buy” customers and sometimes it works.
From being in this industry as my full time profession since 2007, I’ve noticed that the type of agents who offer commission rebates and kick backs to buyers are usually those who are struggling to get by. The best agents, those who add tremendous value to their clients and for whom repeat and referral customers are a large percentage of their business, never advertise commission rebates or cash-backs to buyers.
So it really comes down to a simple question, when spending $300,000 or more on a piece of real estate, do you want to work with someone who is barely scraping by and there is a strong possibility that when your condo is completed in 3-4 years they will not even be in the business any more, or do you want to work with an experienced professional who will actually add tremendous value to your transaction and be there with you for the long haul?
Why I DO NOT Offer Cash Backs (Commission Rebates)
As I said before, most people are in the Real Estate because they think it’s a way to make themselves a lot of money.Â
My philosophy is a little different. (And if you are a Realtor reading this-get ready because I’m about to reveal the secret to my success).
My goal, and the entire goal of TrueCondos.com is to help make my clients a lot of money by investing in the Toronto condo market.Â
It’s really quite simple. The more money that my clients make investing in condos, the happier they will be. Happy clients will keep coming back to buy more condos and happy clients will also refer their friends and family to me.
So if you are reading this but you are not yet my client, that’s what you can expect when you hire me: someone who is fully committed to helping you make more money investing in condos than you would from hiring just any old agent, or by hiring an agent because they promised you a kick-back on their commissions.
How do I do this?
First of all I do it by investing in condos myself, learning from my own mistakes and successes, and passing these secrets on to you.
I will give you the tools, knowledge and resources to make more money than you otherwise would if you hired just any other Realtor, and especially if you hired someone because they promised to give you a rebate of their commission.
But What About Your Top Clients? What If Someone Buys Multiple Condos With You?
While I do not give cash backs to my clients for the reasons I stated above, I recognize and reward my top clients (those who have bought or sold multiple condos with me).
This year, anyone who has bought multiple units with me is invited to stay at my personal 2 bedroom, fully furnished condo in Florida for 1 week during the winter.
Yes, they are mostly there to enjoy the sun, the water, the beaches, the countless attractions that Florida has to offer, but more than that it’s also a potential investment education opportunity. My clients will enjoy a personal tour of some investment properties in Florida with my personal on-the-ground Realtor in Florida who I use to buy my investment properties in Florida.
Pretty unique, right? It’s all about rewarding my top clients while continuing to add value to their real estate investing experience.
I realize that I am not going to please everyone. If you are looking for an agent who will pay you to be their client, then honestly we are not going to be a good fit to work together.
But if you are lookingÂ for a partner in your real estate investment future, someone that will actually help you and teach you to make thousands of dollars more than other investors who simply hire any agent who offers them a token kick back, then let’s work together.
If you are looking to invest right now, and you are ready to hire me as your Realtor, please contact me today.
If you like what you hear, but you are not looking to invest in the immediate future, then please become a subscriber so I can keep in touch with you and continue to send you valuable information that you can use to make more money investing in the Toronto condo market.