Out of the box

"Cash back" .. There are many names and the goal is one

Ismail Al Hammadi

October 13, 2020

I touched on a previous topic of the commission refund phenomenon and its effects on the real estate brokerage market and the sector, and because the phenomenon spread a lot, until it reached the doors of the major developers who have already started to move and address it, I wanted to discuss the topic again and from another aspect according to the different aspects that this phenomenon takes in market.

"Cashback" or "kickback", there are many concepts and names, but the goal is one .. a phenomenon that has grown and developed due to a broker looking for a successful sale deal in exchange for giving up his right in commission to the buyer, to raise the balance of his deals and classify him at the department level, and all of that Actually account for reputation and market reputation.

This broker was not satisfied with returning the commission to the buyer only, but the phenomenon took another form, by tempting the buyer that he could provide him with special benefits that he could not obtain directly from the developer, and perhaps these advantages varied according to the success of this broker in weaving its threads in the mind of the buyer, to cover his «failure »In using the legal and usual ways to attract dealers ... Reasonable!

By logic and reason, buyer, can the broker give you better advantages than the developer himself?

Except for negotiating the price, modifying a clause in the purchase contract, or following up the purchase process until delivery, the broker cannot offer you anything outside the limits of the developer and the law.

By the way, those who provide these services to you are the able mediators who are really professional in the market, not the broker who returns the commission to you, because the commission that he returns to you may not be compared to what is deducted from the unit price when negotiating.

We value the developers ’efforts and awareness of the phenomenon and research in combating it by sending a group of notices to brokers, to protect their rights, the rights of the mediator and the rights of the market in general, and to support efforts to improve performance in marketing and selling real estate projects that are witnessing continuous improvement in the type of offering and quality, and to enhance the wheel of investment attraction and achieve profits to grow the proportion The real estate sector’s contribution to the GDP, being one of the main pillars on which the national economy depends.

Accordingly, it is your duty as a real estate broker to support these efforts and restore consideration for yourself first and for the real estate product second and for the size of the market third, by adhering to the marketing principles stipulated in the contract between you and the developer.

No to the "cash back" or "kickback" phenomenon, no to infringing on the rights of colleagues in the profession, which is yours as well, not to overstep the limits of the developer you work with, nor to break the prestige of the market and hit his achievements in the level of organization and transparency, do not think that you are smart if you are You did that, but you are offending yourself more than you are offending other brokers and the market, and you harm yourself first before you harm others because you gave up one of your legal rights (commission).

And do not think that you pay attention to the customer to gain his satisfaction, never at all. Your interest in the customer is reflected in your being a representative of the developer and with the amount of responsibility when selling the unit, do not tamper with your own financial system with the developer because the commission is subject to the value of the added tax, reconsider your work and work like other successful people or better Them are not the worst.

To read the previous articles of the writer please click on its name .

"(Cashback) phenomenon developed because of a broker looking for a successful sale transaction in exchange for waiving his right to commission to the buyer."