Proptech Carpool – Benefits of Buyers Agents ft. John Carew

August 19, 2019
As a buyer, do you know the benefits of using a Buyers Agent? On today’s Soho Carpool episode, John Carew tells us how using their services will give you a greater advantage when buying property.

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Here’s the transcript of the video:

So how do you get paid am I as the buyer or the potential got taking out the mortgage?
Am I paying you is the bank paying you how do you guys actually make money?
Okay. So for most home lending, the client doesn't pay the brook anything
for their services the book The Brokers paid by the bank on success
for successfully settling the loan.
Okay. So it's only after the advice has been given the client has instructed the broker to go ahead
the client trust the Brokers to I guess execute on the instructions
and put in place the process to get the loan only
when the the loan settles does the broken get paid gotcha.
There's two components to what a bro who gets paid.
Yeah, there's an upfront commission.
So that's what I spoke about as well as Trail commission.
So there's been a lot of commentary
and conversation about what trail commission actually is and does.
Yeah, but essentially there was a time
when Brokers only got paid upfront and A lot of negative behavior.
Yes. So if you paid once off a large sum of money then the ongoing service
and the loyalty to that bank isn't their Brokers
and once they all broke is
but there's a there's a behavior called churning which may
happen when it's a upfront only remuneration structure.
So what banks decided was to actually defer a part of a broker's commission
as Trail so that created I guess I broke it to behave in the best interest of the client.
Yeah to give them an ongoing service
and to make sure that they want just turned out for the sake of another commission.
Okay. Got you.
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