What's The Catch?
Rebates are legal
In case you were wondering, real estate commission rebates to buyers and sellers are legal in all provinces and territories in Canada. Not only are they legal but the Competition Bureau of Canada supports the general concept of real estate rebates as shown through its previous consultations with the Real Estate Council of Alberta: http://www.cb-bc.gc.ca/eic/site/cb-bc.nsf/eng/02236.html. In the United States, some states have attempted to ban real estate commission rebates but such anti-competitive behaviour has been met with strong resistance and legal action from the U.S. Department of Justice: http://www.usdoj.gov/atr/public/real_estate/rebates.htm
No hidden fees
There are no hidden charges, enrolment fees, refundable deposits, cancellation fees, coupons or vouchers to worry about. In addition, there is no legal obligation to buy or sell anything. Only If you successfully buy or sell a property through a HomeFrog network agent, our fee is fixed at $350+GST/HST per transaction which will be paid out of the referral commission from the brokerage which represented you.
Time is Money
A real estate agent’s biggest cost is time, so do whatever you can to save them time so you can `earn’ your rebate. Agents can maximize their productivity by dealing only with serious, committed buyers and sellers who are ready to buy/sell in the near future, are financially qualified and who take an active role in researching and previewing properties and communities they are interested in. This frees up time for the agent to focus on those activities the agent does best – negotiating contracts, providing guidance on market value and co-ordinating the closing.
The Search
We expect buyers to take initiative by using such online resources as property listing services, virtual tours and community-information websites. Your agent can send regular email updates of new properties for sale in the areas you are interested in but be prepared to do some initial legwork by visting open houses yourself and previewing potential neighbourhoods and homes by driving by for an outside look. These first drive-by impressions help to narrow down the choices to a short list by eliminating those you don’t like for reasons you may not have originally considered. Also, try to identify the important features you need your home to have. Finally when you are ready to view homes, be mindful of your agent’s time by scheduling as many viewings on a given day as your schedule and that of your agent will allow. Most serious buyers typically end up buying within viewing about 10-12 homes over 8-10 weeks. By making these sorts of conscious efforts to be efficient and educate yourself, you will have a much clearer idea of the type of neighbourhood and home you’re looking for which will save time for both you and your agent. It will also allow you to be more confident that the home you do end up purchasing is the right choice - based on your clearly defined wants and needs. So why not get paid for your efforts with a HomeFrog rebate?
Buyer Agency Agreement
When you and your HomeFrog network agent meet and agree to work together to find a home, you will be asked to sign a Buyer Agency agreement. This confirms in writing that you are agreeing to be represented only by that particular company (the company your agent is employed with) to purchase real estate for a specific period of time and also spells out what duties your agent is legally obligated to carry out. It is a standard form available through your agent and is produced by most local real estate boards or provincial real estate associations. It may have a slightly different name (ie. Buyer Representation Agreement, Exclusive Buyer Brokerage Agreement) but it serves the same purpose and offers the same benefits. See the FAQ section for the many benefits to you and your agent of signing such an agreement. Once you’ve signed this buyer agency agreement we will send you written confirmation of the percentage rebate you are entitled to receive from us. If you have already signed a Buyer Agency agreement with another brokerage, you would not be eligible to participate in the HomeFrog rebate program.
Pre-Qualified Mortgage
Before you start hunting for a home, please visit your bank and find out the amount of mortgage and rate you will qualify for and review your credit rating. If there are any errors in your credit report, now is the time to straighten them out before its too late. This will make your agent’s job easier as Listing brokers and sellers are more likely to accommodate pre-approved buyers who show a strong interest in their property for sale. It will also save you and your agent time by only looking for properties which are in a price range you can realistically afford. In addition, it will help you determine a comfortable monthly budget for your new purchase, including your down payment and monthly payment. Keep in mind you are under no obligation to obtain a mortgage from the bank that pre-qualified you. In fact, we encourage you to compare rates and offers and when you are ready to obtain financing we can recommend a local mortgage broker to you so they can shop your business around for the best deal.