Posted on: 31-03-14 16:24:02
Seenimesh, how is it an "Unethical Business Practice"?
I thought it is just a reflection of the market demand and supply situation. If there are too many agents chasing the deals, they are willing to reduce their price. As far as I know, the buyer and his agent have to sign a formal agreement about the cash back.
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Quote:
Originally posted by RaOne
Seenimesh, how is it an "Unethical Business Practice"?
I thought it is just a reflection of the market demand and supply situation. If there are too many agents chasing the deals, they are willing to reduce their price. As far as I know, the buyer and his agent have to sign a formal agreement about the cash back.
I don't thinks it is allowed as per The Realtor Code issued by CREA. I could be wrong here.
If it were allowed then I am wondering why it is not being used in marketing material ?
Quote:
Originally posted by Full House
"Cut the price of the house DOWN by $10,000."
FH.
In any transaction it is the seller who sets the price not the buyer. How can a buyer cut down the house price by $10k? Buyer can only negotiate the sale price with the seller.
Quote:
Originally posted by Full House
"It is your money, that they are giving you back."
FH.
I don't think you have ever done a real estate transaction in Canada?
The commission is paid by the seller not the buyer. It is the seller's money out of which the buyer got 1%.
Quote:
Originally posted by RaOne
Hi,
An Italian friend of mine told me recently that when he was looking to buy a house, he had an arrangement with his agent, that agent will pay him back 1% of the total purchase price. In short, out the 2.5% commission the buyer's agent will receive, the buyer will get 1%.
I wish to know how common this is in Toronto.
Thanks.
It is the market dynamics at play here. Recently I completed a sale and purchase transaction through the same realtor. On the purchase transaction I am recieving 0.75% cash back whereas on the sale transaction I will be paying 0% to my realtor and 2.5% to the buyer realtor. I'm still negotiating the figure with my mortgage agent and will be recieving cash back from him.
You only have to ask around. Competitive forces will ensure that you get good deals.
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