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This, of course, is not meant to cause any controversy or problems of any kinds, but I would like to put out a warning to any and all agents who get approached by the Homes For Heroes program.
ASK TONS OF QUESTIONS, and make sure the person you speak to doesn't double talk you. This lady I spoke with was a great double talker, and wouldn't actually answer my questions. The only way I got my questions answered was to restate her words into my own words and she would say "that's part of it" and then double talk some more.
Here's the gist...
It costs you, the agent, 25% for each transaction. This is not a referral fee to the company, but this is a 25% cash back, rebate, gift, whatever you want to call it, back to the "hero", the buyer. In Texas, an agent is allowed to give the principle of the transaction money at closing, so this is not a problem.
I also have no problem giving the 25% because it would be like a referral fee...
What I have a problem with is all the other hands that are being held out. Let me make sure you understand that Homes For Heroes, though they really want to help "heroes", they are a FOR PROFIT company. That means they're not a NOT-FOR-Profit company. That means they have to make money.
Where do they make money? They charge the "affiliates" $120 a month. Yes, that's $120 a month, just to be called an affiliate. That gets you NOTHING! Let me also explain that Homes for Heroes will remind you over and over that they are not a lead generating company. That further means that you could be paying that $120 a month each and every month throughout the year, and never get a Hero referred to you.
Also, when you do get a Hero, and they close, you owe the company $150 for every $100,000 sales price. So, if you sell a $300k home, you owe them an additional $450.
Hold on, the hands are still out. You know what else they expect you to do? They expect you to take your marketing budget and now market yourself in your neighborhood as the agent who wants to help people. Ok, that sounds great, but don't all agents want to help people? Can't I do that same marketing and NOT pay a 25% fee back to the buyer??
Oh, but you're marketing yourself as "the Agent that gives back"... Again, I can still say that since my office is a Children's Miracle office.
Don't get me wrong, this might be a great program for you to work. I'm just saying ASK QUESTIONS or you're going to be dishing out money right and left without any warning.
Good luck to all the heroes as they deserve help finding a house... just like all people who work hard.
Austin, TX and the surrounding areas of Lakeway, Bee Cave, Westlake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Whether you're buying or selling, I'll be with you through the entire process.
This blog is to help educate Buyers, Sellers and even other Realtors across the country. Each market is different and the way Real Estate is done is different. Austin Real Estate is completely different than Dallas, California and Florida and everywhere else in between. Some times there will be other things besides real estate as I like to rant and rave as much as the next!! Come back often!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.