Rebate opponents afraid of competition?
Letters to the Editor
By Inman News, Thursday, April 17, 2008.Bookmarking Sites
Re: 'Realtor group says no to consumer rebates' (April 16)
Dear Editor:
Just curious: is New Jersey going to restrict rebates on cars, computers and groceries? Also, does Jarrod Grasso think the people of his state are so ignorant that they are going to disregard all aspects of service just to go with the company that offers a rebate? No, I think they will balance the companies against each other, find them equally competitive and THEN choose the company that offers the rebate. Is this what he and others are afraid of: competition?
Also, the question was brought up about rebates being seen as aiding down payments or possibly being seen as bank fraud.
What a leap! I worked in mortgage lending for 10 years and a rebate being paid post closing would certainly be seen as neither.
I would really like to see an environment where agents worked on establishing value in themselves as opposed to knocking the other guy.
Helen Hodgdon
Broker-owner
You Decide Realty
Merrimac, Mass.
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Submitted by rick bohmann on April 18, 2008 - 7:25am.
Rebates are a retail marketing strategy. No wonder consumers rank our industry with auto and furniture sale people.
Professionals charge what their skills and services are worth. Rick in Wauwatosa, Wi.
Submitted by Phillip Jones on April 25, 2008 - 7:25am.
There are a few items to point out in this "discussion" on buyer rebates (bribes)...
First, it's a free market and buyer rebates are here to stay, like it or not, regulation or not, buyer rebates are here forever.
Second, how is my time/work worth $18,000 on a $600k house while it's only worth $9,000 on a $300k house? Is the time I spend with the higher priced buyer more valuable? Is the paperwork that I complete better or different for the 600k house? Will I give the 300k buyer 1/2 the service and care 1/2 as much about their deal?
No.
So I win the lottery if I land a buyer that is fortunate enough to be able to afford a 600k and they use me as their agent. I'm not saying that this is wrong, but it does seem a little out of balance.
Finally with regard to rebates, I use them when needed to gain a competitive advantage. I look at it like insurance. If I've invested time into a buyer and then get that uneasy feeling that they may be looking with someone else because I didn't answer my phone at 8:30am on a Sunday morning I'll offer a rebate (amount varies depending on deal size) because I would rather keep the customer and earn 2% than lose them and earn 0% - I think that makes sense, but I'm biased.
At the end of the day, regardless of how much I earn (based on the purchase price of someone elses home) I still need to provide excellent service to keep my customer happy and get referrals..