Would you go with such a realtor
I am a long time lurker here.
We have been planning to buy our first home, have done a lot of research and are close to pulling a trigger. We however still don't have a real estate agent to represent us.
In Canada, buyers can get rebates / cash backs from their agents (i.e. part of the commission they split with the seller's agent)
I have found a fsbo firm (I think it has 3 people) online, which promises to pay 50% of the commission in rebates. We are supposed to the leg work of finding the house and the agent comes in at the end and provides comp info to us and present the offer (electronically) for us. We sign the necessary contract (between the agent and us) just before they provide us the comp info and make the offer. The contact is valid for that particular house.
Now I have spoken with the guy on the phone but never met him. I asked him if he had any other clients that he had worked with on a 50% rebate basis and he told me that I was his first client under this plan. He claims that has been in the business for ~15 years, has a valid license.
The reason I would like to go with this agent is that it would get us a big rebate (for example $5K on a $400K house assuming a 5% commission), but I am not sure the risks involved in this kind of situation.
Would you go with such an agent? What is my downside?