Issue by Even bigger Dripper: How considerably of a kickback do actual estate brokers get on home service contracts?
I’m getting a home through a actual estate agent, he is pushing me to purchase a home assistance deal for $ 300.
I presume he gets a kickback, but he is been investing so a lot hard work on encouraging me to get this, it would seem like he ought to be getting more than just a few of hundred bucks in fee. Can true estate brokers get a residual fee (indicating he might get $ 100 each year I renew the contract) when a buyer purchases one particular of these warranties?
Response by bull_rooster_aardvark
He could get $ 30, or some thing but not really to much. The explanation brokers like them so considerably is so that if one thing does break soon immediately after you get the house, he can just say get in touch with the house service company – they are going to resolve it. If you will not have the deal the first reaction for many individuals is to contact him up and complain that you have been offered a lemon and will by no means purchase from him yet again, and many others, and so on. So, its just a way of retaining the consumer appeased (however not truly happy).
My suggestions, even so, is not to get the issue, as a purchaser. The property assistance organizations are so sleazy, their repairmen are so marginal, and they are so tough to offer with that, rather frankly, the deal is value significantly less than absolutely nothing in my view (I would not use the thing if the vendor gave it to me for free of charge).
As a seller it may well be well worth finding (in spite of how sleazy the entire enterprise is) simply because if your customer has a issue, then (identical logic as the realtor is using) they will not likely contact you and complain – they will just contact the house service company.
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