My Buyer’s Reward Program

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Earlier this summer, I wrote about how my brokerage, Thunderbird Real Estate, has begun offering $1,000 cash back to (most) buyers. The management feels that hey, it’s a buyer’s market, and the buyers ought to be catered to – hence, we have this little incentive going on. As I understand it, though, the incentive is due to end Labor Day Weekend. Who knows, it might be extended…but extended or not, it got me to thinking…

Why not do one better? So here’s what I have come up with: my own, personal, Buyer Reward Program! Under my new program, cooperating buyers can receive an amount that is up to 20% of the commission paid to the Buyer’s Agent’s brokerage by the seller. This money will rebated back to them as credit for their non-recurring closing costs. This is virtually the same thing as putting cash back in the buyer’s pocket, as typically, buyers have to pay their closing costs (usually at least 1.1% of the purchase price) with cash out-of-pocket.

Under my new Buyer’s Reward Program, someone buying a $500,000 condo where the seller offers to pay me a 2.5% commission (e.g. $12,500) would receive $2,500 as a credit for non-recurring closing costs. That’s $2,500 that stays in the buyer’s pocket, left over to spend on furnishing the house, buying new carpet, painting, or just to help make that first payment!

I’m hoping this is going to sound attractive to a lot of people – and well it should! It ought to be worthy enough, at least, to get some people asking, “Where do I sign?!” Where, indeed? Long time readers, you may recall how, going still back a little earlier this summer, I wrote about the Buyer Broker Agreement (BBA), which I had just gotten all fired up over after taking a GRI Class. I mentioned that it really did seem like a good idea. At the time, I wrote:

“The GRI Instructor gave a very cogent argument for using Buyer Brokerage Agreements. It’s something I will consider doing myself, since I really believe it will serve to make me provide better service to my buyer clients. “

Here, then, is the truth of the matter: my Buyer’s Reward Program is simply a twist of the Buyer Brokerage Agreement, in the form of an addendum to the BBA which details the particulars of the way the Buyer’s Agent is to be paid, and what the Buyer is rebated. It’s a healthy amount, though: just $2,500 on a $500,000 purchase – but it’s $3,750 on a $750,000 purchase – and $750,000 is just the median home price in Santa Cruz County!

I’m sure it’s been thought of and done before many times – I believe that this is what Zip Realty does, come to think of it. But I haven’t seen much of Zip Realty around lately. That being the case, I’m going to shamelessly hype my program as “Exclusive!” Forgive me, but it’s got to be done. I really do think it’s something a Buyer ought to give serious consideration to participating in. In fact, I’m sure that many Buyers in Santa Cruz would be interested in participating! If you, or someone you know, is interested in saving some good money on a great Realtor, have them call me! We can talk about other great ways to save them money on their Real Estate purchase as well! A $2,500 rebate from my commission is good for the Buyer; getting the Seller to lower the price $30,000 and paying you another $10,000 to cover other costs is a great thing – and that’s what I’m all about.

I invite you to view my web page about my Buyer’s Reward Program. Please pass the URL along to anyone you know who would be interested – remember, I love referrals! The URL is:

http://santacruzhomebroker.com/reward

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