Historically, commission of the realtor in the real estate market is calculated as a percentage of the facility value. We find this practice unfair and we change it for convenience of our clients.
We introduce fixed commission in the amount of 5 000 euro for any facility and we pay back the commission to the buyers from the developer in full after the deal - from 2 to 14% of the cost of the flat.
At present, our clients pay common commission to the realtor, independent of the price of the flat and get cashback to spend as they wish. This practice applies to all geographical locations Westarp.io operates in.
WHY WE DO IT?
We do it as we find commission too high and its current calculation system imperfect. It makes no difference for realtor, whether he sells a 1 million euro house or a 100 thousand euro flat. To make both deals he has to perform the same set of operations. But for sale of the first object he gets the fee ten time more that for sale of the second. It turns unprofitable for the realtor to sell cheap facilities. This facilitates discrimination of buyers according their investments volumes. In case the realtor handles two or three more expensive deals parallel to yours, he is likely to spend less time on you, as its more profitable for him to pay his attention to sale of facility, on which he earns more. Additionally, he can try manipulating your opinion in order to lean you toward purchasing of a more expensive object and increase his own earnings.
Fixed commission settles these problems.
We find it possible to arrange a proper real estate purchasing process for the same amount. No price discrimination: be sure that Westarp.io agents are fair-minded making advice and assessing facilities.
Moreover, we refund the commission from the borrower as a cashback. You may spend this money to buy furniture for your new flat or whatever else - we are sure it will come in handy after such an important step as a purchase of a real estate.
Why cashback specifically but not an ordinary discount?
It's not profitable to grant a common discount to the borrower: all of his business processes are set to secure permanent financial motion in the company. Therefore, in business terms, it is more efficient for him to put money into circulation, and pay it back after the conclusion of the deal. And it assists us to peel apart the poor market players.
We hope that our new approach to commission generation will change the laws of the game in the real estate market in favor of the buyers. And cashback will turn to be a nice bonus. Our principle is not the belief that "my mission is my commission", which is so much popular with realtors, but the transparency, hospitability, and expertise.