USAA MOVERS ADVANTAGE

USAA only cares about lining their pockets with YOUR cash. The only way this will change is to say NO to USAA and start up your own "buyer advantage" plan. USAA is sucking Agents and Companies dry in military towns. In Warner Robins, Ga our agents pay 37.5% referral fee to USAA! Been showing a customer for weeks then they say hey we called USAA and found out that we quailfy for the mover advantage plan, we told them we were working with you but USAA says in order to get the cash back we have to work with an agent from XYZ realty...cya...

I had a client ask me about the program - Thanks for you post - I also found it on google.  From what I read they take a 35% referral fee from the agent on both side of the transaction if you help them sell and buy and then they give the USAA client back a portion (of usually less than 1/3) of what they got back to the client and they keep the rest.  It if fine for a Realtor to join the program to genereate leads - but very misleading to a client, especially if they can hook up with a Realtor that will put them on a move up plan like many do.  I offer 1% of the lower sales price back on the second transaction - so if they sell the home at $100,000 and they buy a home at $150,000 then they get $1000 back from when they buy, if the sell at $150,000 and then buy at $100,000 (maybe a downsize in home or something) then I give them $1000 on the second transaction.  It's like taking a total of 5% in the end.  It works well and keeps everyone happy!

Our brokerage works with USAA. Here are a few things buyers and sellers should be aware of but USAA won't allow us to disclose to the buyers of sellers of USAA referred clients. USAA actually has us to sign a form that we will not disclose the following. I choose not to sign as for doing so does not represent the best interest of my buyers and sellers.

•1)     37.5% from our commission.

•2)     Clients will only receive a small portion of our commission and most of it will go to USAA.

•3)     USAA will force clients to use USAA financing.

•4)     USAA financing's closing cost will cost their clients $1,000 to $3,000. So actually after clients get their cash back, they will even loose more by using USAA.

•5)     USAA's Interest Rates are higher.

USAA only cares of USAA's interest, don't let them fool you.

3) USAA financing's closing cost will cost their clients $1,000 to $3,000 more. So actually after clients get their cash back, they will even loose more by using USAA.

thank you for the post ft knox real estate,

I try to explain this to everyone that wants to use USAA.

My husband is vet and is says USAA should be ashamed of their sellf. USAA targets the Military for business and the majority of clients think it is a military company and there to help them.

USAA stands for:

United Service Automobile Association "IMAGINE THAT"

Members money is not even FDIC secure: see link below

https://www.usaa.com/inet/ent_search/CpPrvtSearch?SearchPhrase=fdic+insured

As a verteran who considered using this program I have a suggestion for you.  Do not participate in the program and instead offer a rate cut on your commission to equal what the buyer would get back from USAA.  My realtor did just that and I agreed to save her money by not using USAA.  I still get my rebate in the form of a smaller commission.  It is a win win. 

While I understand your frustration you are not going to get much sympathy in this market.  Home prices are terrible and many can barely get out of a home without losing money...especially when the realtor fees kick in.  If I have to take less on my home then why shouldnt Remax, the realtor, and everyone else take a bit less as well?  As a veteran I feel I deserve these rebates / kickbacks and that is why I support USAA (United Services Automobile Association).  After all less than 1/2 of 1% of the US population has served in the military.  Military families must move more than the average person and so they are stuck dealing with realtors more often.  You and your company should be doing it for less without complaints. 

I do not feel USAA hides behind the uniform.  They fight to get us good discounts on products, provide top rate insurance, and hands down give the best customer service on all their products.  Making bold statements that we do not know what USAA stands for is not going to win veterans to your business. 

Good Luck

I am getting ready to close on a house in a few weeks. I didn't know USAA took the money from my realtor, who was actually very good. Even though he took a cut in his commission, the man was running around the entire city for me taking pictures and giving me very good assessments of the houses I was looking at. I was quoted by 4 banks for my home loan and USAA gave me the best rate, by far the best rate. My assigned MoversAdvantage rep was very helpful too. She kept in contact with me throughout my home searching, when I emailed her, she responded in minutes most of the time. So MoversAdvantage was very helpful but it sucks they take some of the commission from my realtor.

Hello All,

There are some great points being made here from both sides. Let me start of by saying that I would be completely in agreement with a 37.5% referral fee.  I would gladly take on these clients all day every day.  I know someone from Coldwell that all they do is Relo's and even with the 37.5% referral fee, they are still in the top 25 agents and Million Dollar agent circle.  Wouldn't you like to make a cool million! They close over $6,000,000 in sales just from relocations. WOW! Think of it as a marketing cost.  I spend 1/3 of my gross profits to marketing dollars.  It's the only way to keep the business flowing.  So think of the 37.5% your 1/3 marketing cost. You are getting a client without putting much effort into marketing for that client sale or purchase. CARTUS or USAA or Any other relocation program..if you are reading this, please contact me!!! I'm a dedicated agent and provide my clients with exceptional service.

What I'm not in agreement to is the amount that goes back to the client.  USAA or Cartus should only get 1/3 of the 37.5% and the rest to the client.  I think the state boards should get involved in the regulation of referral fees and set a max and how much should go to a client in these circumstances in compliance with RESPA, which does not currently have anything on this. 

As for the commission reduction for sellers, it would all depend if they are buying and selling with me directly.  Think of it this way.  Other professionals such as accountants and lawyers charge a retainer fee for their hourly work.  When have you seen a Realtor charge you upfront for listing your property on the MLS $150, lawn sign $150, neighborhood sings $150, Lock box $50, Flyers $150, 50 direct mailers for neighbor just listed $50.00, Gas for showing the property on appointments and open houses for 2 months $100, Preferred listing on Zillow, REaltor.com, Trulia, Homes.com $150.00 - Add this up $$$$$ Need I say more?? This does not include the time spent answering every phone call on the listing from potential buyers. Upfront cost is $1,000 and if the listing is over $500,000, then its even more expensive. 

Have I cleared up a lot of the issues with the 6% Commission??? and even then, the 6% doesn't go all to the listing agent.. on 95% of the sales, it's split between the buyer's agent and the listing agent, which at most times, are from two different brokers.  Then from the left over 3%, the broker takes about 20% - 40% depending on which company you are with.  So let's do the math

$100,000 sale at the 3% = $3,000 - broker fee(only at 20%) - (marketing $1,000) = $1,400 - (Self employment taxes and income taxes) = $980 Net profit!!!!!!  We have yet to subtract Car insurance, health insurance, cell phone, thank you cards, etc.

Now where are we making tons of money off your sale? Of course, the higher the sale, the better the Net Profit, but this goes to show that the Agent only ends up keeping about 1/3 of the commission.  Which someone has already commented on. 

So Mr. Seller, Can I walk into your business today and ask you for 1/3 of your Salary? Most Realtors are professionals and we do not charge retainer fees. Lawyers, Accountants, Consultants, all charge retainer fees to cover a lot of the overhead for the service provided in case the final outcome is not a won case, or a completed audit or tax return, etc.  Realtors do all the work, spend all the money and if the sale does not go through, loss all that money.  I'm not saying be sympathetic, but have some empathy towards the hard work and the expense most Realtors put in to service their clients the right way.  This career is a choice and most Realtors love what they do. They can easily go and get a full time job, but prefer being self employed and helping people buy and sell properties. Not only do I help my clients, but a lot of my clients become friends.  I have coffee with some of my clients on a regular basis, go fishing, attend seminars, have lunch, etc.

This is a relationship business. Sure there is money to be made if you work hard enough and increase your business, but it's mostly for the relationships being built and the positive influence most realtors have on their clients that Realtors stay in the business.

Sure I will take a reduction. But it all depends on the circumstances.  Shortsales, Client buying and selling with me, referral, Bad divorce, death in family, etc. 

I work 6 days a week out on the road and in the office and answer my phone all the time 7 days a week. My clients are only a phone call away and even if they don't buy with me, they can still call me for advice....You can call up any realtor right now and have them explain a shortsale, foreclosure, regular sale, estate sale, a purchase contract and they will love to talk to you.  FREE ADVICE!!! Try calling a lawyer or a doctor, accountant and getting free advice. At most a lawyer will tell you what you want to hear then say come in and we'll talk about it then charge you.  A doctor will charge you and your insurance an office visit, etc....

Any questions?

I think they actually are licensed (USAA), as that is the only way a referral fee can be paid.  I have an odd situation right now in that one day before signing the buyer's agent sent an addendum to have the real estate commission paid to be reduced by $650 and then the buyer to receive that creidt.  I am in a state that does not allow buyer's to receive incentives (like Redfin does)....so I think what i have going on here is that USAA knows they can't pay the buyer so the agent is trying to do it directly.  Not going to happen on my watch!

In response to 23 June 2011 above, USAA does NOT force Movers Advantage customers to use USAA financing.  They're independant programs with no mutual obligation.

In response to Jasus Pazmino (June 6), I would love to pay an agent a la carte for the exact services that I need instead of lumping everything into a percentage of the purchase price.  Those prefessions he lists typically charge for services rendered; very few clients actually pay to keep them on retainer.