I did a search on this company and didn't come up with anything. Anyone know anything about them? Opinions good or bad are appreciated.

Thanks,
Will

So no one has heard of or has any opinions on Zip Realty? I guess that doesn't say much for them.

Will

I heard they give their clients 20% cash back at closing. The only reason I know this is because I just got a recent client that I had to compete with Zip by offering him a portion back. Plus Zip Realty does nothing else for their clients to my knowledge. They are basically an internet company. You can visit their site at www.ziprealty.com

Well...I know this topic has been around a while, but I felt the need to leave a reply.

Having just come off the ZipRealty wagon, I have very harsh feelings. In concept, Zip has a great idea. I was going to work from my home office, which most of us do anyway. I would participate in weekly conference calls, usually on Monday mornings.

Zip would provide my leads...(okay) You were paid on a W2 for your closings which was a nice thing as I didn't have to worry about the IRS ( I hate to write that check ) They call you an "employee" but you are in fact still and "independent contractor"

Everything you do is monitored by big brother...the agent platform is called "Zap" and they have people in CA that do nothing but sit and watch what everyone does all day.

For an example, if you don't log enough calls in the system, you'll have your leads shut off. So after running around showing property all day, and answering and making calls on your cell phone all day, you have to remember to go home and enter them in the online diary, or it's believed that you are doing nothing. The agent is expected to "spam" the customer database relentlessly until the address is blocked.

Customers come to the Zip site to use the MLS, but are in fact working with another broker...but the management doesn't understand why this person isn't looking at property with the Zip agent. Or the lowest of the buyer bottom feeders...the ones that have in fact already found a property, another agent showed it to them, and then come to the Zip site so they believe they might get the rebate.

Okay, enough of my rambling, if you want to know more about discount brokerage, I would be happy to share with anyone interested.

Debinmass,

Are those after-closing rebates by Zip disclosed on the HUD-1?

Yes, the rebates are disclosed on the Hud...

Also, in MA at least, a disclosure statement signed by both the agent and the buyer had to accompany any offer being submitted.

Are they marked POC on page 2 of the HUD?

Or are you referring to closing cost credits that are posted on line 205 on the front page?

In MA they only have the option of taking the rebate as a check after closing. In other areas of the country the buyer could choose to take the rebate as closing credits so I assume the amount could also be on the front page of the HUD.

So when Zip gives an after-closing rebate, are you saying that it is reflected on line 704 as:

"P.O.C. $2,450 from Zip Realty to Mr. & Mrs. Buyer"

Reference: P.O.C = Paid Outside Closing

Yes it is...

interesting...

I just gave a rebate to a client and the lender (a large bank) said cash back after closing is not allowed. They forced it to be a credit against settlement fees. This was a good borrower with 20% down. I scratched my head

I even provided all DOJ documentation showing that cash payments from agents to buyers is acceptable. They totally disregarded said information.

It could be different state regulations. As I said, in MA it's not allowed to be put toward the closing, only as a rebate check after closing.

it also depends on the lenders terms. even if the state says "you can give a rebate" it doesn't mean the lender needs to allow it. very few lenders (at least in florida) are willing to let a buyer walk away from the table with cash in hand from the deal (whether in the form of a rebate, closing costs paid, etc) unless it's directly from the seller (not from the agent). Cash deals are a different story...but lenders have their own rules.

Thanks for sharing FL, always interested in learning how the discounter concept works. Makes no sense to me, but I guess it must make sense to someone.

Do you get paid a commission or hourly wage?

The DOJ is spending millions of tax dollars to allow cash back rebates after closing; yet, banks don't allow it. Who's right? Does the lender even have any say about what an agent does with his/her commish after closing? DOJ says that they have found no basis that a rebate will adversely induce a buyer into a sale. Does this remove any argument that a bank might have?

If a rebate is after closing and comes from the agent's commish, can a lender construe it as a seller concession? Or, are seller concessions only those funds used in the closing?

When DOJ writes about this rebate issue, they never even mention the lender -- as though the lender has no part in this.