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AtlantaJohn · Guest

Is cash rebate legal?

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Hello,

I am new the board and have been an agent for about 1 year.

I was asked by out of state client that if I offer a cash rebate? I haven't heard of such a thing before, so I did a research and found that there is one agent (I am sure there are many) from Atlanta who offers 1% cash rebate if the buyer helps out in the beginning search from his website and that he doesn't show no more than 15 homes.

I was just curious to see if this is legit? Any input would be greatly appreciated. Thanks.

John

NashVegas · Guest

Re: Is cash rebate legal?

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I don't know if it is legal in Georgia, but there are several states where it is legal (not in TN). I would go here to find out: http://www.grec.state.ga.us/
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judyo · Guest

Re: Is cash rebate legal?

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It is legal in IL and I've seen as much as 50% of an agent's commission being rebated!
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mikelong · Guest

Re: Is cash rebate legal?

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I would tell the guy or gal that he doesn't pay me any commission. The seller does, so why would I give you any of my commission that you are not giving me. I understand without the buyer you don't get paid, but that guy is shady and he probably will be to cheap to buy anything at all. You will probably have more trouble with him than happiness. I say, tell the guy or gal that you don't do that and he will probably go with you anyway if he does buy a property. good luck
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wissing · Guest

Re: Is cash rebate legal?

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There are a few corporations that are setting a trend with buyers. Zip realty allows you to search for homes and they show you how much you will be rebated.

Rebated is actually what will be credited to you in the close of escrow. This is going on all over southern california but not with many websites that are high ranking (thanks to the universe).

It is not illegal to do it this way in California, but to pay an unlicensed person for a referral is illegal.
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Falcon Living · Guest

Re: Is cash rebate legal?

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I have been thinking about offering rebates for a while. At the end of the day, while cash is king, the ridiculously high prices are having service need override cash need.
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Mert Sahinoglu, MBA , Broker
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maxxipotamuz · Guest

Re: Is cash rebate legal?

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I'm in Oregon and invariably every client who comes up from CA asks for a rebate. Some were kind enough to ask me way up front to give me an opportunity to decline. Others would wait till we've signed a sales agreement and then dump me the news. Personally, I find it insulting for the work we do, but that's the reality in their market. One thing I did observe about those people who insist on getting a rebate /kick back: they're usually the cheapie who'd want to see everything out there in the market and can't make up their minds. You end up spending triple the time and earning less. It's not a good deal. For me? I'd rather have fewer but great clients whom I'm going to have long term and trusting relationship with.
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jnazareno · Guest

Re: Is cash rebate legal?

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I believe it's legal as long as you disclose to your clients that you are given them something ( in written or by way of Ads ), but should yoor clients ask for this - simply tell them that you won't pay my commision and NO i don't give cash rebates-then compare tell them about your great service and your WORTH
to your clients, compare yourself to the rebate people- tell tell upfront what you are gonna go to earn the trust of your clients and as I said before compare that with the rebate people-usually in CA once the rebate people are in contract, it's hard to get in touch with them. if all else fails, tell them if the owner of the company they work for once day goes to them and tells them, John Doe
i like to have cash back after I pay you, how would they fell about it ?

Usually I don't have to tell them the last part of the story. offcourse after each deal I usually buy all my clients a gift cert from Best buy or sears (the amount depends on the commission I get)

So really it's all about what you'r Worth to the people who you want to do business with. I don't want to come out wrong iwith this, but I probaby won't do business with people from India (they are kings of Kings of asking for crazy rebates) I just laugh at them and tell them sorry I can't do business with you.
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Lethul 1 · Guest

I agree with the last guy...
I am just breaking into this, but I am not new to sales - If you start talking money too soon, you'll never win. There is always someone with the better deal out there, who will take those customers right away from you. you sell yourself, your company, then the product. And oh, by the way, they owe you a little money in the end. you know what I mean? I feel sorry for you CA guys who say that rebates are a regular thing. I don't intend to step on any tails, but anyone who has to sell on price, can't sell themselves, and needs to go back to step one. For those, I highly recommend some sales training.