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I recently got pre-approved by USAA for a home mortgage. The loan officer put me in contact with the Movers Advantage program and I was asked if I was interested. They're willing to give me 1250 back if I use the program.
Here's how I understand it:
Money comes straight out of my agent's pocket. They have an agreement to work with USAA in exchange for getting leads.
I've heard both sides of the story. Some say it's a fine program and some say it's unethical and hurts agents. USAA requires certain standards to be associated with the program and the agents must maintain that standard. I can also choose another agent if I don't like the first one assigned.
I can't really see any downsides. I'm sure I'll hear the typical line about how no good agent would ever do it. Surprisingly, every agent I've met with so far (pre signing up for the program) claims they're better than everyone else.
I don't personally know any agents that I would want to use. So is there any downsides that directly hurt my bottom line by using this program?
I gave a client $300 more to use me instead of a USAA agent 50 miles away, who wouldn't have been able to navigate the local conditions.
Last week he stopped in and invited me to come by for a beer after a 2 year lapse since closing.
The guy I got assigned seems to be local. I have no problem canning him or the entire program if it doesn't work out. I'm in a military heavy town so maybe I'll try asking for a similar rebate to what USAA will give me.
I'm in a military market and if the buyer is so set on getting a rebate I will match the USAA kickback. Remember that USAA is pocketing the majority of the money they get from the agent, you only get a portion. They are looking out for themselves more than the serviceman. My perspective as a 24 year retiree and an agent. Talk to your co-workers and see if they have an agent they would recommend. Personal referrals go a long way. We are lucky to have a loyal following of satisfied buyers who recommend us to their friends. We don't have to give up a third of our commission to USAA so we can spend more time with our clients and fight to get them the best deal. USAA referral agents have to make up the loss of a third of their income by volume. I've talked to many homeowners who used USAA to buy and they can't even remember their agents name a couple years later. We don't have that problem.
I'm in a military market and if the buyer is so set on getting a rebate I will match the USAA kickback. Remember that USAA is pocketing the majority of the money they get from the agent, you only get a portion. They are looking out for themselves more than the serviceman. My perspective as a 24 year retiree and an agent. Talk to your co-workers and see if they have an agent they would recommend. Personal referrals go a long way. We are lucky to have a loyal following of satisfied buyers who recommend us to their friends. We don't have to give up a third of our commission to USAA so we can spend more time with our clients and fight to get them the best deal. USAA referral agents have to make up the loss of a third of their income by volume. I've talked to many homeowners who used USAA to buy and they can't even remember their agents name a couple years later. We don't have that problem.
I really don't care if USAA is looking out for themselves. Afterall, they're a business. I know that's the case. I really just care about my bottom line. If I can make some money by using them I'm all for it.
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We don't have to give up a third of our commission to USAA so we can spend more time with our clients and fight to get them the best deal. USAA referral agents have to make up the loss of a third of their income by volume.
Are you saying that because agents make less on the deal, they're going to work less and not try for their buyer? Is that really what I can expect?
I don't typically discount my fee but from what I've observed of those who do . . . well you get what you pay for is the nicest thing I can say.
So why do people sign up for the USAA program if they're going to give bad service? Not trying to start a flame war, just curious.
I talked to the agent assigned to me yesterday morning. He basically called me and said he'll add me to his automated email listing of the MLS with the price range I'm looking for. I told him I'm not moving to march and he told me don't bother calling him until January. He also didn't even bother to ask anything about what I'm looking for or the areas I'd like to live. He recommended breaking my lease and buying now because houses are selling immediately. The whole phone call lasted five minutes.
I realized what everyone else was saying about the service. I'll probably start looking for a more reputable agent. I'd like the kick back but not if that's the service I get.
I wouldn't get the cart too far in front of the horse. I recently did a deal....,well, er....attempted to do a deal with a lady who was 'pre-approved' by USAA...and the 'pre-approval' wasn't worth the paper it was written on. Unfortunately the 'NO" didn't come until hours before the scheduled closing--long after the potential buyer had spent quite a bit of money on pre-moving expenses, inspections, etc.
I wouldn't get the cart too far in front of the horse. I recently did a deal....,well, er....attempted to do a deal with a lady who was 'pre-approved' by USAA...and the 'pre-approval' wasn't worth the paper it was written on. Unfortunately the 'NO" didn't come until hours before the scheduled closing--long after the potential buyer had spent quite a bit of money on pre-moving expenses, inspections, etc.
Bummer for me; ugly (and costly) for her.
Are you saying that USAA pre approval is not as good as any other banks pre approval? How did she not find out until hours before closing?
Are you saying that USAA pre approval is not as good as any other banks pre approval? How did she not find out until hours before closing?
1-The agents absolutely treat their USAA clients as well as any other client. While it's true the agent has to pay a referral fee USAA is a source of multiple closings and repeat business per year. If the client doesn't give positive feedback they get removed from the USAA relocation team.
2-USAA's per-qualification is as good as any pre-qual. They check your credit and Income to Debt ratios. Then you have to verify info to become pre-approved/get final loan approval. That process doesn't vary.
3-If for some reason you aren't happy with USAA but like the agent you can still use the agent and get the rebate. If you like USAA but not the agent, you let your consultant know and they'll get you another agent. You don't always have that luxury if you don't have the power of USAA behind you.
4-To qualify the agent must meet requirements for number of closings and customer service.
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