Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes)

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Rainmaker
547,445
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Okay this is what you tell him. Seriously dude? Do you know how weird Arizona is as a state? Do you want to take the risk of not knowing enough about your purchase because you're dealing with an agent that probably doesn't know anything?
Do you know how many unrepresented buyers and fsbo's we hear from with nightmare stories because they didn't have a full service agent?

Apr 10, 2018 11:00 AM
Rainmaker
917,600
Corinne Guest, Managing Broker
Barrington Realty Company - Barrington, IL
Barrington, a Luxury, Country Suburban Lifestyle.

Depends on the area. Here they used to get 50%, now they get a max of $3K and it's based on purchase price. If all he wants is money, why not, if he wants good representation, well we work harder for more money, of course we do, we are human. So in the end he'll get what he pays for, even though it's not his pocket.

Apr 10, 2018 09:55 AM
Rainer
258,510
Ken Jones, ASA, SCGREA, CRES
VRI Commercial Real Estate - Hazlet, NJ
Commercial Real Estate Specialist

Will Hamm Perhaps you should tell your friend he'd probably be better off without an agent, this way he can REALLY get screwed.

Does this guy know anything about Arizona?

Does he know anything about the agent in Arizona?

If he's interested in saving money and making sure he doesn't get reamed in the process, tell him to hire an exclusive buyer's agent (one who's company doesn't take listings).

People like your friend really frost my glasses, man.

Apr 10, 2018 11:34 AM
Rainmaker
641,310
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Your friend is right. The REFIN model is to provide rebates to the buyer from the buyers agent compensation.

At closing the seller is always thrilled to see the compensation the SELLER paid being handed to the buyer.

The REDFIN model is very much a 'no-touch' approach to real estate. The competent buyer (they all think they are) does all the leg work, the agent takes the order and is compensated accordingly with the balance going stright into the hands of the buyer.

Apr 10, 2018 10:28 AM
Rainmaker
2,301,844
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I believe Redfin refunds a portion of their earned commission back to the buyer as a credit at closing. If your friend is not an agent, he can't earn any commissions or referral fees.

Apr 10, 2018 10:17 AM
Rainmaker
1,043,949
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I'm reading an article at: https://wallethacks.com/buying-a-home-with-redfin-vs-full-service-agent/   and the comments are pretty interesting.  This one below really gives a nice summary.  Basically, you get the commission rebate, but you do all the searching and the agent gets paid a salary regardless of if you complete the transaction or not... so therefore less incentive to make it work.

 

Portion of the comment most of use:

"If you are a serious buyer, find a good agent and hire them. Otherwise get paid by REDFIN to do your own work. Of course you can find a great home. Remember there is a difference between an agent that only gets paid with a completed transaction and one who gets paid a salary. With Redfin you’re the only one who does not get paid if the transaction fails. Weather you’re the buyer or the seller. The redfin agent gets paid."

Apr 10, 2018 10:01 AM
Rainmaker
2,560,896
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

You have lots of great comments here.  I like Ryan Huggins - Thousand Oaks, CA straight from the book. 

Apr 10, 2018 12:04 PM
Ambassador
3,300,666
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

After investing for 30 years, I know the value of hiring good representation, I share this with all who are considering a shortcut.

Apr 10, 2018 10:19 AM
Rainmaker
2,246,288
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

There are many ways to skin the cat just makes sure you don't skinned too

Apr 10, 2018 11:00 AM
Rainmaker
4,498,243
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

I like the response by Ryan Huggins - Thousand Oaks, CA

Apr 10, 2018 10:54 AM
Ambassador
1,986,803
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 Does Arizona allow commission rebates to Buyers?

 

Apr 10, 2018 10:09 AM
Rainmaker
511,197
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Redfin offers a rebate to buyers. It is offset by a poorer quality job done in representation? You can only find out the hard way.

Apr 10, 2018 10:00 AM
Rainmaker
2,826,132
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Is your friend an agent. If he was in Colorado would this question be easier for you to answer? 

Apr 10, 2018 09:58 AM
Rainmaker
447,128
Dan Tabit
Northstone Real Estate Inc. - Sammamish, WA

Redfin is just one company that offers rebates. I've written a thousand times that the first priority a buyer or seller should set is to find the highest quality, experienced and knowledgeable agent possible.  If in that pursuit, they also offer some rebate, that's up to them. By putting a rebate ahead of quality, you may end up with neither.  

Apr 10, 2018 03:21 PM
Rainmaker
532,112
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

What Candice A. Donofrio said.

Apr 10, 2018 03:08 PM
Rainmaker
353,248
Maria Sapio
Berkshire Hathaway Homesale Realty - Carlisle, PA
Real Estate Agent- Carlisle, PA. Mariasapio.com

I would call Candice A. Donofrio and voice record her response and then play it for your friend...

Apr 10, 2018 01:35 PM
Rainmaker
362,479
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

everyone wants a "deal", I believe the better question is what is he giving up to get "a commission back" and no doubt the value is much greater.

Apr 10, 2018 12:06 PM
Rainmaker
1,349,113
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

He does get part commission back but I don't know what it is. Why would he work with someone who would do that? Would he give back 1/2 his salary per hour? What's the benefit then or what's the scoop?

No one is seasoned there. If you don't care ... then go for it.

Apr 10, 2018 11:54 AM
Ambassador
1,504,287
Alan May
Coldwell Banker Residential - Evanston, IL
Helping you find your way home.

Redfin does offer rebates to the sellers in those states where it is allowed.

Apr 10, 2018 10:02 AM
Rainer
9,002
Jeff Perlis Prime Properties
Prime Properties - Lake Arrowhead, CA
Experience Your Own Transformation!

Just say, you do not know.

Apr 16, 2018 07:21 PM
Rainmaker
259,056
David Martin
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality

Well REDKIN offers rebates but they aren't worth the lost value of having Experienced, Expert buyer representation. The rebates avg according to REDKIN are only about $2k. Personally I've been able to save my recent Home Buyer clients on average more than 5 times that rebate value ;-)

Apr 16, 2018 04:02 PM
Rainmaker
2,396,635
Richard Weeks
Dallas, TX
REALTOR®, Broker

Unless you work for them my response would be "I wish we knew".

Apr 11, 2018 06:58 AM
Rainmaker
4,145,207
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I don't know how they work.

Apr 11, 2018 06:24 AM
Rainmaker
2,820,000
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Corinne Guest, Managing Broker nailed this one!

Apr 11, 2018 05:22 AM
Ambassador
3,852,501
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Will Hamm - I almost asked this question with a slightly different take. I'd say, that's their value proposition (or lack of value proposition!) as price and cashback become important to them!

Work with someone who is really 'service' oriented and who works for the buyers!

Apr 10, 2018 10:05 PM
Rainmaker
3,507,594
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Everyone thinking they know the ins and outs of this profession and then getting taken to the cleaners

Apr 10, 2018 09:03 PM
Ambassador
3,583,477
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

You get what you pay for or in this case what you don't pay for. Buyers trying to get rebates learn expensive lessons in the end. 

Apr 10, 2018 07:06 PM
Rainmaker
1,307,552
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

It is the only benefit: 1% to get back. But the price: working with R assigned agent. Younger people do not care about relationship, just about saving. 

Apr 10, 2018 03:01 PM
Rainmaker
2,559,411
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

You get what you pay for. Choose wisely. 

Apr 10, 2018 01:59 PM
Rainmaker
645,834
Nick & Trudy Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtors, Philly Main Line

They keep changing the rules on how much they give back, better to get proper representation and make the savings in the negotiations.

Apr 10, 2018 01:51 PM