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I have worked both USAA clients and non-USAA clients, some of which are military. I give the same amount of dedication to each client no matter how they come to me.
skyshark, while USAA does make some money off the referral (by getting it from the commission), USAA pulls the majority of their funds from their related industries, such as the mortgage and insurance arms. When I take a USAA client, I ask if they have been pre-approved. If they say yes, great, however I do always offer, especially if they are first-time buyers, to provide them additional names of lenders in the area that have often been able to match or beat a USAA rate and also gives them the convenience of a local lender. I also give them names for local insurance agents, in case they would like to compare rates. As the wife of a military retiree, I am eligible for USAA, however we did not use them for our mortgage and do not use them for insurance. I was able to receive a better rate using a group discount for being a Virginia Tech grad.
And Brandon is correct. After a USAA transaction, the member is sent an evaluation and asked to rate the process. Agents/Realtors need to receive excellent ratings to continue to receive the USAA referrals. In theory, this protects the member by allowing them to work only with the those that deliver the highest level of service. But one thing members need to realize, a non-returned survey is the same as a negative rating, so they need to be returned.
Skyshark, as to needing referrals, if you are still active-duty, you might want to talk to some of the civilians at your new installation. As civilians, they have been in the area for a while and will know the right agents to recommend. This may be something that would be a little more personal for you.
I hope this helped answer some of the questions you had about the process. As you mentioned, for some, that rebate really does help them out, and hopefully they get an agent that is looking out for their best interests.
And by the way, thank you for your service! HOOAH!!
USAA Buyers Advantage Takes 40% of the Realtors Commissions
The answer to your question is yes. With my company, USAA takes 40% of my commission at closing and then turns around and gives the buyer a fraction on that amount.
Personally, I think it's appalling that USAA uses this tactic to make money. It's a slap in the face to all the military buyers who put their trust in USAA because we are instructed NOT to disclose this arrangement to the buyer because USAA doesn't want the buyer to know that it is only giving them a fraction of the money collected from the realtor.
I wish more military buyers would ask their agent or USAA why they are giving them the buyers advantage money (they give it regardless if they use USAA for the loan) because nothing is free in this world.
Also, depending on each state's real estate laws, the realtor could give the buyer the same rebate offered by USAA and not have to pay USAA. All the buyer has to do is ask their realtor.
The answer to your question is yes. With my company, USAA takes 40% of my commission at closing and then turns around and gives the buyer a fraction on that amount.
Personally, I think it's appalling that USAA uses this tactic to make money. It's a slap in the face to all the military buyers who put their trust in USAA because we are instructed NOT to disclose this arrangement to the buyer because USAA doesn't want the buyer to know that it is only giving them a fraction of the money collected from the realtor.
I wish more military buyers would ask their agent or USAA why they are giving them the buyers advantage money (they give it regardless if they use USAA for the loan) because nothing is free in this world.
Also, depending on each state's real estate laws, the realtor could give the buyer the same rebate offered by USAA and not have to pay USAA. All the buyer has to do is ask their realtor.
I would think that unethical. Any material payment involved in a transaction needs to be disclosed to the lender and the client. I see no way around it other than an unethical act. Likely a RESPA violation if financing is involved.
Have any realtors here worked with the USAA Movers Advantage Program? I'm wondering if realtors using this program lose a percentage of their commission to USAA.
Yes you are 100% correct. Realtors must pay 38% of their commission just to get a name from them. That is why most of the time you will get brand new agents as the experienced agents refuse to pay that much of a referral fee. Plus they think the realtor works for them and not you. I did it for several years and then refused to work under their conditions. If you want a good experienced agent don't use their program.
Yes you are 100% correct. Realtors must pay 38% of their commission just to get a name from them. That is why most of the time you will get brand new agents as the experienced agents refuse to pay that much of a referral fee. Plus they think the realtor works for them and not you. I did it for several years and then refused to work under their conditions. If you want a good experienced agent don't use their program.
I don't know why people keep saying this. To be a USAA approved agent they require a minimum of 2 years and 25 closed transactions to even be considered. Then the agent must apply and be approved. The agent always works for the client and there is no confusion. USAA is minimally involved in the transaction other than making sure the client is satisfied. OleCap, the client received a cash back rebate so they are aware and that is normally why they are going through the program. If you think experienced agents won't take the business you're kidding yourself.
As far as the referral disclosure, do all agents disclose a broker to broker fee is being paid when they get referrals? No different and irrelevant to the lender.
Have any realtors here worked with the USAA Movers Advantage Program? I'm wondering if realtors using this program lose a percentage of their commission to USAA.
I used it once last year BUT the money that my buyer received CAME OUT OF MY COMMISSION.... so not sure my broker was honest and used the program properly!!! When I called USAA to ask about the program, the lady was rude and said that she wouldn't tell me anything, but that she would give me an email address for my broker to write in and ask questions. Hum?
I'm not sure if you know this or not but we originally had signed up with USAA Mover's Advantage Program. We are big fans of USAA and do all of our banking, investments, credit card, and insurance with them. It only made sense to us that we would use their relocation program as well. But as it turns out we were grateful that we did not completely rely on USAA and their program. We were drawn to USAA and their program for a variety of reasons. USAA has great customer service and they have never let us down in the past. The thing that I didn't fully realize about their relocation service is, that the agent(s) that they assign, really do not have any ties with USAA. We actually ended up using two different agents that they had assigned to us, and were not satified with either of the agents. I had been under the impression that USAA could somehow provide a certain amount of protection and have leverage over the agents that would help us to get the best service. As it turns out this was not at all the case. The agents that were assigned to us were not special in any sense of the word. Other reasons why I really wanted to use their program was due to the fact that they offer a cash back program (roughly $200 - $1,000) and because I had fully intended to finance our loan through their bank. After doing some shopping around for mortgage rates, I was surprised to find out that the local bank rates were extremely competitive and actually a better deal. The other thing that we discovered was that the local bank was very amiable to work with us and make some concessions regarding the terms of the loan and as a result we decided to accept the offer. The money that we saved by financing with a local bank completely offset USAA's cash back incentive. Looking back on the process it has been quite a learning experience. All of our expectations of using USAA to buy/finance our home have gone unfulfilled.
Ok, then I have a question for you. Last year, I had a client who used the movers advantage.... well, my broker was NOT a member, but said they would accept it anyway. Well, what they did was give the buyer back $1,200 dollars, $800 of which came out of MY pocket, and $400 out of the brokers pocket... With that being said... who paid USAA?
I personally think it's a rip off! They take 40% of my commission, and then give my client a fraction of that..... Um, no, I'll keep my money! And USAA does NOT send or give you clients
I personally think it's a rip off! They take 40% of my commission, and then give my client a fraction of that..... Um, no, I'll keep my money! And USAA does NOT send or give you clients
You clearly don't understand USAA's movers advantage program and you don't have to agree to pay the referral. The client can then choose not to use you as an agent.
In Oklahoma, it is not legal for the buyers to receive a rebate. Why anyone in this state would use the
USAA Movers Advantage is unexplainable.
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USAA Buyers Advantage Takes 40% of the Realtors Commissions
