What most people know about buying real estate, they've learned from traditional real estate agents. But we're a different type of real estate brokerage. Learn how we pay our buying clients, and get answers to common questions about our Boomerang™ Buyer Rebate Program.
A commission rebate, in its simplest terms involves a REALTOR® sharing the commission they earn with their client.
When a property is listed for sale on the MLS® system, the listing agent (more appropriately the listing brokerage) who represents the seller offers an incentive to REALTORS® from other brokerages to bring their buyers on a tour of the property. This incentive, usually a commission of 2.5% of the selling price is paid to any licensed real estate brokerage who succeeds in negotiating a successful sale of the property on behalf of their buying client. So when you hire Equity One to represent you in the purchase of real estate, we collect a commission - a portion of which is split with you.
We've explained our rebate program below in a 2 minute video.
Never. Our position is simply to reward our buying client with the portion of the commission that would have otherwise been split with the brokerage in a traditional brokerage. And we do it while delivering the same exceptional service you would come to expect from a large national brokerage.
Easily one of the most common questions we get asked. To answer that question, one must understand how traditional brokerages operate. Most brokerages employ REALTORS® as independent contractors, and as part of their contractor agreement they must pay the brokerage a split of any commission they earn. So in the event a sales representative earns a $12,500 commission, they may be required to hand over as much as $5,000 to the real estate brokerage. Worse, they may also be subjected to desk fees, service fees, rent and a litany of other fees. And many real estate brokerages have rules in place prohibiting the payment of any monies earned back to the client. In a nutshell, most REALTORS® simply cannot afford to offer a rebate to their clients.
Equity One operates a completely different brokerage structure that doesn't require its REALTORS® to 'pay the house', and we don't hire independent contractors. So the money that would have gone to the brokerage is instead rebated back to our clients. And we are not a brick and mortar brokerage, allowing us to minimize our overhead as we operate in the cloud as a virtual office. But don't let that scare you. It just means that if we have to meet, we'll come to you - which is the way it should be.
It sure is. The Real Estate and Business Brokers Act (REBBA 2002) permits and endorses the rebating of commission to anyone that is a party to the real estate transaction. Not to be confused with payments to third-parties, referred to as bird-dog fees or kickbacks, which are illegal. In other words, rebating money to either a buyer or seller is legal, but making a referral payment to an individual who generated the lead, like a mortgage broker or lawyer is illegal.
You can learn more about the Real Estate Council of Ontario's position on commission rebates by reading RECO's position on rebates.
Never, as the rebate does not affect the seller's bottom line. The rebate is paid from the commission offered to Equity One, which was established by the listing brokerage prior to the property being listed, not at the point of sale. In fact, the rebate never comes up during negotiation as neither the listing agent nor the seller is affected. Put another way, whether we keep the entire commission or share any of it with you, the seller has already factored in the commission paid before an agreement to purchase was drafted.
Yes. We provide services you would come to expect and deserve from large national franchises. Among the services we provide:
To sum it up, we want to make sure we help you find and negotiate the best price for your dream home that falls within your budget, in an area that is sure to appreciate over time. And we want to make the process enjoyable & stress-free.
The size of your rebate will depends on two factors - the purchase price of the home and the amount of commission being offered by the listing brokerage.
Use the calculator below to estimate the amount of your rebate based on your anticipated home purchase price.You will be told in advance and in writing how much Equity One will rebate back to you prior to the submission of any offer.
Generally yes, provided that the listing brokerage is paying a commission, and that the commission meets certain minimums. In fact, the home listed for sale need not be listed with a real estate brokerage - most private sales also qualify. And rebates are not limited to homes listed with Equity One. Generally, all properties listed on the MLS® system qualify, and we have thousands of MLS® properties listed on our site imported from all the large brokerages.
No. You'll know exactly how much you will receive prior to the submission of the offer. We are happy to put it in writing.
Generally, no. After all, we are simply rebating a portion of the money you've spent to acquire the property. But we would advise you to speak with an accountant regarding any tax implications arising from the rebate.
Generally we will have your rebate cheque in your hand within 10 days after funds have been received from the listing brokerage.
Equity One offers all the benefits of a traditional REALTOR®, with the added benefit of getting a cheque after closing on your new home. But don't worry, we'll do everything you would come to expect of great agents, and we never sacrifice service on account of splitting some of our commission with you.
Yes. We'll help you determine what you can afford by putting you in touch with a mortgage specialist. A mortgage specialist will see that you get the best rate at terms agreeable to you.