Cashback Realtor Case Study
What most people want to know is why successful real estate agents would give cashback? If they are successful already, why would they relinquish half of their commission? So, we asked a cashback realtor.
Realtor Profile
As discussed on our main page, we adopt a Hotwire approach to maintain the anonymity of our agents so for this profile, we will just call him Agent P. It also makes him sound like a James Bond character which is cool! He was our first cashback realtor!
Agent P, like all our cash back real estate agents, is a member of a team that is top 1% in Canada. The team is active across Toronto, but specialises on central and western Toronto. We asked him some questions.
Why Do You Like the Agent Cashback Model?
The bit I love about this job is the negotiation. Getting my client the deal on offer night on the house they love. (If we get it without being the highest price, even better!). Or finding value that no-one else has seen in a house that has been sitting for a while. For me, this is the best part of the job and where I can bring the most value to my client. The agent cashback model allows me to do more of this because clients only come to me when they have done their homework and they are ready to buy. They are incentivised to keep viewings to a minimum because then they get more of my commission. I am happy to give it to them because it gives me back time and that time allows me to do more deals. It really is a win-win!
What About Clients Who Don’t Have the Time to Do Their Homework?
The cashback model deals with this too. What I see with my clients who are super busy is that they want me to preview properties for them. They give me a clear set of guidelines of what they are looking for. Then I visit each property to make sure that they are suitable before they go see them. When I preview a property, it counts as a viewing. So if I preview a lot of properties, I keep most of my commission. However, the reason these people want me to do the legwork is because they are busy and their time is valuable. In turn, they appreciate that my time is valuable and are happy to pay for it. What I like about the agent cash back model is that when it is broken down, clients appreciate the value we bring to them as real estate agents.