First Time Home Buyers Stunned by Cash Returned by Realtor

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Troy Hill and his fiancée Jamie Shen are both 29 and in the process of looking for their first home. They had been pre-approved for an FHA loan and were interested in homes in their surrounding neighborhoods.

Initially, they tried to avoid using a real estate agent and tried to work directly with listing agents on homes, so that they could have more negotiating power. They thought if the agent was getting a double commission on both sides of the purchase and sale of a home, it would help them get a lower price overall. After going to a few open houses, it turned out to be a little too complicated and ineffective with Realtors trying to double-end the deal and take even higher commissions.

At first, they were a little hesitant about using Padx.com. Buying your first home is a big decision and a lot of money. Finding the best way to purchase a home that did not involve an agent more concerned with getting their commission than focusing on the right home for Troy and Jamie was their biggest challenge.

However, they heard about Padx.com from their friends who bought a house through them and received over $20,000 cashback. Since their friends had a great experience with Padx.com, it seemed like a no-brainer and provided them the best of both worlds. Padx.com would represent them as an agent, and upon the purchase of any home they found for sale or searches on Zillow, Redfin, the MLS or any other home search site, Padx.com would negotiate the deal effortlessly and split their commission 50/50 with Troy and Jamie. So, they signed up at the site, downloaded the app, and began looking at available homes online.

Padx Buyer cash back slide.
FIG. 1 – PADX.COM VS TRADITIONAL BROKERAGE MODEL

So it began, they searched and found a home on the Padx.com app then submitted a request for a private tour on a home that they liked. The next day they met a Padx.com agent, Jim, at the house. Troy and Jamie quickly realized Jim was the real deal.

“Jim was a really solid guy that cares, not your typical agent. Since a commissioned sale did not incentivize him, he was focused on helping us find a home that fits our lifestyle,” said Troy.

Jim and the Padx.com team of agents worked closely with Troy and Jamie, helping them find what to look for and ask the critical questions to ask during home tours. Because Padx.com is a team of Realtors, Troy and Jamie had the comfort and expertise of a team dedicated to finding the right home for them.

“It was an extremely educational experience because we wanted to make sure we bought a house that was perfect for us,” says Jamie.

Troy and Jamie toured about 15 homes. They didn’t find anything they fell in love with at first. But having Padx.com in their “back pocket” gave them the power and strength of knowing they had a company behind them and the knowledge that no matter what home they decided on, they were going to get back more money than any agent would be willing to pay. They also knew that the Padx.com team would review and negotiate the best possible price. As they started looking at more and more homes, they told Jim they were a little self-conscious about taking up so much of his time. Jim was emphatic in reassuring them that he was there till the end, and not to feel bad when they didn’t like a home. The very nature of how Padx.com works is not like a traditional Realtor. All Padx.com Realtors are on staff and do not work for a commission. Typically, Realtors need to sell a house as fast as possible so they can get their commission quickly and move on to the next Buyer. The Padx.com mantra is finding the right home for every person.

“Jim made us feel extremely comfortable throughout the entire process,” said Troy.

After touring another ten or so more houses, Troy and Jamie found their home on a Wednesday private tour. They pulled out their iPhone and opened the Padx.com app and quickly made an offer with the Online Offer Tool. They beat all the other offers because the Open House was the coming Sunday, and they were able to use the app to schedule a private showing of the house before anyone else. This was the home! They loved it. They spent a lot of time walking through the house and property. The house was on a huge lot with over an acre of land, had more bedrooms and bathrooms than they were hoping for, and was very private and secluded while still being in their desired location. All for a price well within their budget!

Because the Padx.com technology has very powerful features, Jim was able to be very meticulous with the comps in the area to find the best offer to present for the home.

“He didn’t just do the math on his own and tell us what to do, but he explained his entire process and how he came up with the numbers he had come up with,” says Troy.

This blending of “high tech” and “high touch” is the kind of customer service necessary for buying homes today since buyers do much of the work online researching what features are essential and what they need in purchasing a home.

Their first offer was countered a day or two later. The selling agent said there were two other offers on the house. One of the other offers was higher than theirs, and one was lower. They would give everyone one more chance to make a higher offer on the house. Again, Troy and Jamie huddled with Jim and tried to figure out what they should offer, what they were comfortable offering, and what made the most sense. About 24 hours later, they heard back from the listing agent that their offer was accepted!

The next step was the escrow process. Again, Troy and Jamie were nervous because the escrow needed to close within 30 days. They had never done this before, and they knew there was a lot that goes into it. Jim reached out to the lender and explained the need to close quickly and got everyone on the same page and working together. They were able to close escrow within 30 days and own the home of their dreams! Jim and the Padx.com team were also able to negotiate an additional $20,000 in repairs to be made that the seller did not want to do at all. Everyone was ready to back out of the deal if the repair costs were not met, but Jim was patient and diligent with everyone and was instrumental in getting Troy and Jamie the additional $20,000 they needed.

After the escrow was closed, Jim continued to check in and make sure everyone was going smoothly. After such a crazy process, the end was easy and smooth, and Troy and Jamie moved into their new home on time. Jim always kept a positive attitude and continued to push the deal forward and represent Troy and Jamie with enthusiasm and professionalism.

The total cost of the house was $590,000, with closing costs of about $13,000. Two weeks after the close of escrow, Troy and Jamie received a check from Padx.com for $7,375 for their commission rebate!

Padx Competitor comparison
FIG. 2: COMPETITOR ANALYSIS

“The money we received from Padx.com will go towards remodeling the second bathroom and putting a fence around the property,” says Jamie.

Their check was tax-free because Padx.com splits their commission 50/50 with the Buyer of any home. Since the price of the house was already agreed and paid for, the money falls under post-tax dollars and is legally “free” money because it is a commission. No other company can provide this level of service and cashback on the sale of a home.

Says Troy about the entire Padx.com experience:

“It was great… Buying a home is so hectic and crazy! Throughout the entire process, Padx.com had our back on ANY house; they have streamlined all the unnecessary waiting plagued by traditional real estate processes. Jim and his expert team were easy to work with and had top-notch professionals in every aspect of real estate. Even when I got angry at the lender or annoyed with the seller, Padx.com always had my back and helped to educate me on the process. They did a great job setting the expectations and helping to close the home on time. It was as easy as it could be for buying your first home. We definitely recommend them for someone buying a new home, and we’re definitely going to use Padx.com again!”

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