U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 09-08-2015, 11:29 PM
 
1 posts, read 5,034 times
Reputation: 10

Advertisements

I would like to share my experience with the USAA Movers Advantage program as a new realtor. I am a retired combat disabled veteran, who recently decided to pursue a second career in Real Estate.
Within the first two weeks of working for ERA I met another Veteran who was looking for a home in the area. He and I looked at several houses and he found one that he wanted to place an offer on. This was his first home purchase and he asked if I had any recommendations on financing. I told him that I banked and insured with Navy Federal and USAA, and that he might want to speak to them to compare rates.
The next morning I get a call from the Relo department stating they had a lead for me, and that he had requested me as a realtor. Being new, I asked what all this meant, and what was involved. It was explained to me, that I would need to send a $30 fee for a background check, that I would need to refund 42.5% of my commission to USAA, and that I couldn't discuss any other types of financing with my client, other than USAA. I told them no thank you. They told me they would be sending him to another USAA certified realtor. Amazingly, out of over 100 agents at the brokerage the lead went straight to the brokers wife.
A couple months pass and another client that banked with both USAA and Navy Federal is interested in buying a house. I asked another agent since both USAA, and Navy Federal require a commission split back to them. How I should proceed, as I wanted my client to get the best deal. The next morning I am called into the brokers office and informed that they were no longer willing to sponsor my license. I asked why, and the broker stated that since I wasn't positive about sending leads to USAA, and that it was a large percentage of their business, that I wasn't welcome there.

Needless to say, I am not a fan of the USAA Take Advantage of program, or ERA.

I am all in favor of Vets getting a good deal. I would willingly surrender 50% of my commission to be returned to any vet without hesitation. But that is not how USAA distributes the commission they take from the Realtor. On a $99,00.00 loan the vet was being given $300 back, and the remainder of the 42.5% was going into USAA's account.

Good realtors work hard for their money, and have some hefty expenses. All through the real estate licensing process, we are encouraged to use the utmost care in dealing with our clients Fiduciary responsibility is stressed throughout the licensing process. How am I upholding my responsibility, if I can't discuss other loan options with my client than USAA.

If USAA, Navy Federal, Regions, Wells Fargo, or any other lending institution is offering my client a more attractive loan, that is what I would encourage him, or her to pursue.

As of today USAA rates for VA fixed 30 year = 3.907% Others are offering 3.75%. That's $3867.93 compared to $3712.50 the first year. Total cost of mortgage USAA=$168,246, Other=$165,054. That's $3192 savings in going with the other lender. And wow they gave them a whole $300, while taking 42.5% of the realtors commission for this government guaranteed loan.

While we are on the subject of $, lets take a look at how the realtor did in this deal. 99,000 X .06 = $5940 50/50 Split List Side/Sell Side = $2970, 40/60 Broker/Agent = $1782 Agent, 42.5% to USAA = $757.35, Agent gross = $1024.65. Then subtract out the fuel, advertising, realtor fees, etc. Anyone that thinks real estate is easy money, has never tried it. In rural areas it is not unusual to cover 200 miles in a day and come through the door at 9:00 PM. A really good realtor is selling between 30 to 50 houses a year. 75% quit in the first year, mostly because they are not making enough to support themselves.

The lenders of these mortgages, are getting borrowers guaranteed by the federal government. These are the absolutely one of the best bets in lending money, and USAA sees a need to strong arm people to get them

So if one of you experienced realtors that supports USAA, and has signed one of their agent agreements would like to explain to me how you are in all cases supporting the best interest of your client in these scenarios, I would love to hear it.

I would say in many cases as the USAA preferred realtor your providing not only a disservice to our vets. but you violating your fiduciary responsibility to your client as well.
Rate this post positively Quick reply to this message

 
Old 09-09-2015, 03:42 AM
 
Location: Madison, AL
3,298 posts, read 5,676,639 times
Reputation: 2665
USAA is terrible. Just go read their reviews. Every deal I have ever had where the buyer insisted on using USAA has been full of drama and delays. Their rates and fees are ALWAYS higher than what our local lenders are providing.

The only one who wins in the USAA Mover's Advantage is USAA. Not the buyer, not the agents.
Rate this post positively Quick reply to this message
 
Old 09-09-2015, 10:39 AM
 
Location: Howard County, Maryland
1,539 posts, read 2,033,039 times
Reputation: 2446
I agree, its a terrible program (I've used it myself in the past). Now as an agent, I just avoid the whole USAA/NFCU fiasco by offering a matching cash back rebate at closing. Check with your broker and your state laws though.
Rate this post positively Quick reply to this message
 
Old 09-14-2015, 11:16 AM
 
1,738 posts, read 2,715,291 times
Reputation: 2210
Quote:
Originally Posted by LCTMadison View Post
USAA is terrible. Just go read their reviews. Every deal I have ever had where the buyer insisted on using USAA has been full of drama and delays. Their rates and fees are ALWAYS higher than what our local lenders are providing.

The only one who wins in the USAA Mover's Advantage is USAA. Not the buyer, not the agents.
My USAA mortgage is fine. Sounds like you have a beef with them for some reason.

I opted out of using the program based on some of the advice here. And....I got burned by my agent who came highly recommended. This fine agent decided to cancel on showing up to my closing two hours before it was supposed to happen forcing me to go alone. I already broke my lease and had no place to live if I didn't close. He told me over the phone everything is fine and to just sign the forms since he looked them over.

But, he didn't even look over the forms. The HUD form wasn't calculated correctly. We used the closing company that he recommended. It was nice getting a 5K tax bill in the mail 4 months after closing. So glad I paid for what amounted to unlocking some doors. The whole system is a racket.

Next time I'm going with Redfin.
Rate this post positively Quick reply to this message
 
Old 09-14-2015, 01:34 PM
 
Location: Columbia, SC
10,217 posts, read 19,958,909 times
Reputation: 9022
Quote:
Originally Posted by Pyramidsurf View Post
My USAA mortgage is fine. Sounds like you have a beef with them for some reason.

I opted out of using the program based on some of the advice here. And....I got burned by my agent who came highly recommended. This fine agent decided to cancel on showing up to my closing two hours before it was supposed to happen forcing me to go alone. I already broke my lease and had no place to live if I didn't close. He told me over the phone everything is fine and to just sign the forms since he looked them over.

But, he didn't even look over the forms. The HUD form wasn't calculated correctly. We used the closing company that he recommended. It was nice getting a 5K tax bill in the mail 4 months after closing. So glad I paid for what amounted to unlocking some doors. The whole system is a racket.

Next time I'm going with Redfin.
I'd guess that your tax bill is because you didn't register for owner rates?

So because one full service agent didn't meet your expectation you think all agents won't perform up to up to expectations? Have you ever had a bad haircut? If so did you take that to mean all barbers give bad haircuts?
Rate this post positively Quick reply to this message
 
Old 09-14-2015, 02:12 PM
 
5,443 posts, read 5,917,773 times
Reputation: 15114
I know this is an old thread, but I see some current responses so I'll throw in my 2 cents. I guess I got 'lucky' when I went through USAA and used their buyers advantage program. When I bought a few years ago, I didn't know any agents in the area so I went through the buyers advantage program and I was set up to work with a local agent who knew VA loans. The agent we were assigned worked great for us. We keep in touch to this day. As for USAA, we only had one hiccup which was quickly resolved and we closed on time. About a week before closing, the initial title company was going out of business (long story which includes the CEO of the title company committing suicide by shooting himself in the chest with a nail gun) so the seller had to frantically find a new title company to switch everything over to. Well, USAA was the last to find out and at closing, USAA was supposed to wire the funds for the down payment, closing costs, etc to the new title company. Well, they ended up wiring it to the old title company. They got this squared away as quickly as possible and the funds were wired to the proper company the next day. This could have been real bad, but everything worked out.

I'm a believer in the idea of 'just because I had a great experience, you might not'. Also, what some people consider bad enough to never do business with again, might be no problem at all for someone else.
Rate this post positively Quick reply to this message
 
Old 09-14-2015, 03:38 PM
 
1,738 posts, read 2,715,291 times
Reputation: 2210
Quote:
Originally Posted by Brandon Hoffman View Post
I'd guess that your tax bill is because you didn't register for owner rates?

So because one full service agent didn't meet your expectation you think all agents won't perform up to up to expectations? Have you ever had a bad haircut? If so did you take that to mean all barbers give bad haircuts?
You just proved my point.

Every time I bring this issue up with agents in real life, they defend his actions and try to blame me.

That's not what happened. The escrow didn't calculate or pay the state taxes when we closed. Any reputable agent should have caught that on the HUD form since it's, you know, their job.

Bad haircut? Sure, and I didn't go back to them. But, a bad haircut didn't cost 15K.

I took the advice of those "seasoned" and "best" realtors and got burned. My fault since I suspected it was bull**** to begin with but went along with it because my wife wanted to use one.

I tried it, didn't like, and won't use one again. I didn't see anything worth the price I paid and will gladly use Redfin next time.

There's other things too. Like when I asked the agent to get the garage door code after closing and he didn't even call me back. He didn't mind texting me for my contact info a month later and telling me that he would do a great job selling if we wanted to upgrade though.
Rate this post positively Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top