Cashback
In my opinion, this is one of the ugliest side of real estate industry.
I am not sure when and how this started but it’s definitely happening today and I do not see how this will ever go away.
What is cashback/kickback?
This typically refers to a situation when buyer demands a portion of your commission to be paid to them thus making their overall purchase price lower. Do not get upset because sometimes they are just trying their luck.
Ways to counter
(1) It's illegal!
I would certainly love to serve you and add value to your purchase but however giving a cashback in commission is against our code of conducts, if found guilty not only will I lose my practicing license, it might also affect you as well.
Reference material: Professional Service Manual by CEA (page 16, clause 1.10.1)
(2) Talk about relationships (not just one-off)
Certainly i am sure there must be other agents offering you or willing to accept such offers, but for me I want to focus on adding value to your purchase and stick with you from the point of purchase all the way till i help you to sell in future at a profit.
That is why all my clients whom I’ve transacted with me before are 100% still with me and I still regularly keep in touch and keep them updated.
(3) Kill off unethical agent (so that client won’t want to associate with them)
My experience with those agents who offer cashback are usually agents who are one-off transactors meaning after once the deal is done, they will just disappear because that’s their strategy of “numbers game”.
Most of them are untrained and not to mention unethical agents whom you will not want to work with for long term and therefore will not be value adding to your real estate journey at all.
(4) Offer to give them business in other ways
I will certainly be happy to support you back by buying _____ from you and referring more clients to you.
I am sincere in walking through you and your families real estate journey and also be a loyal client to your business too.
(5) Offer to buy a gift for house warming
I will be more than happy to celebrate the purchase of your new home with a nice house warming as a friend because I don’t see this as a one-off transaction and I am sure there are many ways I can value add to your home ownership in future.