Offer 15% of the total commission back to your clients at closing as an incentive
If you are struggling to produce standard referrals with certain people, they might need a little push in order to use our services. Offering them money as an incentive to move forward, might be a good enough reason for them to use our services. Real estate rebates are currently legal in 40 U.S. states as long as your referral is a 3rd party to the real estate transaction. Park Place has the connections to set your referral up with a top agent, in their market, who will rebate them back 15% of the total commission at closing.
*In NJ, rebates are only allowed on the buy side of the transaction.
Questions & Answers to everything below:
Q: How much will I make on the 15% rebate transactions?
A: Before, you would make 22.5% on a standard transaction. But, with the rebate transaction, you will not make as much. The 15% would come out of your 22.5%. So your referral will make 15% at closing and you would make 7.5%.
Example: Total 3% commission on a $400,000 sale= $12,000. 15% back to your referral= $1,800. 7.5% back to you=$900.
The positive on these transactions is the amount of volume that you will be able to produce. This gives you the leverage to market this program to buyers and sellers outside of your sphere of influence. Market to buyers and sellers in high priced areas like California where the average home price is $600,000+, or other areas throughout the country. Or, offer it as a gift to a friend of family member. The potential marketing avenues for this program are endless. The 15% rebate buys loyalty, these prospects might have never used our services, but will now to be connected to a top agent, and get back 15% of their commission.
Q: How will my referral get 15% back at closing?
A: Real estate rebates are legal throughout 40 U.S. states. As long as your referral is a 3rd party to the real estate transaction, they can receive a real estate rebate from the total real estate commission (15% of the total commission to be exact). We will refer them to a top agent like we would with any other referral. The main difference is the referral agreement that we would use states that the broker we refer it to would rebate them 15% of the total commission at closing and then pay us the remaining amount. Their rebate would be paid from the broker we refer it to, not Park Place. Your commission would come from us like normal.
Q: Is it a top agent or a "discount" inexperienced agent that you refer to?
A: We would refer it to a top agent with a proven sales record like we normally do.The company we refer it to is paying the same amount regardless if it is a referral fee back to Park Place, or a partial referral fee and partial real estate rebate. Park Place has leverage when we send out our referrals as we are sending out a lot of real estate referrals all over. The company that we refer it to typically welcomes our business as they would like more of it in the future. We can also refer it to your agent as long as they are ok with the rebate at closing.
Q: Do you have a website to where I can market this program?
A: Yes, the current website is www.TopAgentRebate.com. There is an area on this website where your referral would put in your name, that way you get credit for the sale. If you are marketing this online, lets say through Facebook advertising, you would put your name on the ad that way they input you on the above website. They would need a Park Place agent in order to get the 15% rebate. See the images we made below that you can use to market yourself on your social media accounts.
Q: Why 15%, can I offer 10% or 20% back to my referral instead?
A: No, not at this time. We are trying to keep this program very simple for all involved. If this is an issue, send us an email at email@example.com and we can talk about this further.
Q: Can I use my own Realtor and give the rebate back to my referral?
A: Yes, you can use your own agent, but you would need to speak with them first about the rebate. Normally, the referral fee is 25% for sales below 200k and 30% for anything higher. In order for the 15% rebate to work, your agent would need to be ok with a 30% referral fee regardless of the price. Your referral would get back 15%, and you would get back 7.5% of the total commission.
Q: How do I refer out these type of transactions?
A: The same as you would with any other referral, here on our website. In the notes, input that this is a real estate rebate. We will email you back to confirm that you are ok making 7.5% vs the standard 22.5%. From there, we will refer this out to a top agent in their market which typically takes 1-2 business days like usual. When we receive back the executed referral agreement, we will email you back all of the details on the assigned agent so you can notify your referral who will be reaching out to them and giving them back 15% of the total commission.
If we get a lead on our website with your name on it. We will forward this lead to you to follow up to make sure they are serious. If so, you would refer it out in the step above. We will not contact your referral whatsoever if your name is on the lead.
Q: Will this work with International brokers too?
A: No, this currently only works in the United States within the 40 U.S. states in the above link.
Q: Is this just for residential transactions?
A: No, we can get a real estate rebate for any type of real estate sales excluding rentals or business brokerage. If you have a buyer or seller for residential, commercial, or industrial real estate, we can get a 15% rebate back to your referral at closing.
Q: How do I make sure my referral gets back 15% at closing?
A: Our referral agreement that we have with the brokerage states that they will pay your referral back 15% of the total commission at closing. But, people make mistakes and they might forget about the rebate months later once they close. Make sure your client knows that there is a 15% rebate at closing and it should reflect on the closing statement. They should not sign the closing documents unless that 15% rebate is on there in writing.
Q: Is the 15% rebate cash or a credit at closing?
A: Typically it is a credit at closing which would go towards their closing costs. But, they would need to check with the closer as they might be able to get a check at closing too.
Q: Will this work with new construction homes?
A: Yes, and no. Many of the top builders are adding into their contracts that they do not allow rebates. If you have a buyer looking to buy new construction and you have offered them the rebate, let them know that it might not work but we will talk with the builder to see if they will allow it.
Market yourself on Social Media
Below are several images you can use to promote yourself on Facebook or any other social media platform. Simply copy the below images and save it to your computer. Then, upload it to your Facebook page and post it to all of your friends. Write whatever you think will help market yourself to your family and friends.
We understand that real estate rebates can get confusing. If you have any additional questions on this, please send us an email to firstname.lastname@example.org. This program has worked out great for many of our agents to generate more referral business.