Question 1

How does contextRE work?

Accepted Answer

contextRE Inc is a real estate brokerage with top licensed, local Real Estate Broker and local Real Estate Agents. Since our Real Estate Broker is licensed in multiple states, there's no extra franchise fees, so we are able to charge less fees than the legacy agencies.(Apart from not being greedy for the sake of being greedy).  We charge far less than traditional real estate agents and we pass all savings to our clients. From browsing homes to closing, everything happens in one seamless experience.

There's also multiple ways to receive your savings. You can either lower the price of the home, have closing credits, or get a rebate after closing.

Question 2

Does contextRE work for first time home buyers?

Accepted Answer

Yes! The reality is that we are providing the service that professional investors get. Often times, investors get reduced commission because of the volume of deals they do. Our philosophy is that you should also get the chance to pay less, even if you're not buying 10 homes.

At the same time a first time home buyer should focus on getting good service. not the "lowest price". Paying less for commission wont matter if the agent your are working is not helping you negotiate a lower price, and simply telling you " make your best offer". A great brokerage like contextRE will help you see the red flags in homes(showings), reading disclosures with you, and explaining things with patience. Some agents only write offers for you and don't help you throughout the process.

Question 3

Who is my point of contact?

Accepted Answer

contextRE is Broker operated. You will work with our founder Rene Perez Jr and work alongside with his team. You can communicate via text, call, email, slack, whatsapp, wechat, or even kakaoTalk. Rene leads a full team of contextRE agents that who support your entire real estate journey, from scheduling showings and being there with you, to following up on repairs after you have purchased a home.

Question 4

Are there any tax implications?

Accepted Answer

Per the IRS, these rebates are generally not considered taxable income for the buyer.

The commission rebate should be viewed as an adjustment to the purchase price instead of being viewed as income. An agent should not be giving you a form 1099 as that would implicate a source of income. Although it is not taxed now, the rebate you receive now will be subtracted from your cost basis in the future. You will have to adjust your cost basis. This means that when you do sell, the profit you make will include the rebate amount. When selling you should make the calculation of  how much capital gains you will be paying based on the adjusted basis that includes the real estate rebate.

For more details visit IRS publication below and a tax accountant, CPA.

https://www.irs.gov/pub/irs-wd/0721013.pdf

Question 5

Is there a contract?

Accepted Answer

Yes. Everything in real estate should be in writing. Our representation agreement is clear and most importantly, it is non-exclusive.  This means that if you decide you don't want to work with us, we don't force you to work with us! We are not here to pursue our commission, we are here to be of service. Our fee is documented and there is a 3 month expiration of our contract.

Question 6

Are there upfront fees? When do I pay?

Accepted Answer

Real Estate commissions are only paid at closing. If you write offers and don't win, or if you back out after an inspection, mortgage, or any contingency, you don't owe us anything. There are no upfront fees unless you only want to hire us to do showings for you or if you decide to hire us as a consultant. Depending on the offer, the idea is for the commission to be paid as a concession from the seller, not out of your pocket.

Everything will be in writing and explained!

Question 7

Where does contextRE operate?

Accepted Answer

ContextRE Inc works nationwide. Rene Perez Jr is licensed in multiple states. We are the ONLY brokerage of our kind to do business internationally. With our main focus in Mexico and Spain. Rene is a licensed real estate broker in California, Colorado, Washington.  We work with partner agents in other states.

Question 8

Will I work with a local real estate agent near me?

Accepted Answer

Yes. You will be paired with a dedicated, local real estate agent. Our agents possess deep knowledge of neighborhood market trends, school districts, and local property values. We want  to ensure you have an expert advocate by your side throughout the entire process, we understand a home transaction is very  important to you.

Question 9

Will I meet my agent in person?

Accepted Answer

Absolutely. The first appointment will be aa phone call. But the second meeting can be in person, at a public place, at our office, or at a home you are interested in buying or selling. We want to make sure you have context throughout the entire process and we understand a real person, not just an AI or a computer screen is helping you throughout your home transaction.

Question 10

Does contextRE offer home buying rebates or  cash back ?

Accepted Answer

This depends on how the offer to buy a home is written.. The rebate or cashback is based on the real estate comission that the seller agrees to pay us. However, It might make more sense to lower the offer and instead have a lower sale price, less property taxes! Or pay for closing costs. You can choose the best way for you and we talk about how we will write the offer every time before we submit a new offer.

Question 11

Do I have to work  exclusively with contextRE as a buyer?

Accepted Answer

No, contextRE does not require you to sign an exclusive buyer’s agent representation contract. We represent you for all offers initiated through the contextRE. You tell us which properties you would like us to work with you, in the ones you don't want us to represent you, we simply don't.  If another agent finds you a home,  manages the transaction, and helps you throughout the entire prices, you don’t owe us a any money.

Question 12

How quickly can we make an offer? Same day offers,

Accepted Answer

Very quickly. In our experience, we are quicker than any of our competitors, given that we also work after hours. Most brokers "clock out" after 5pm. We don't. We regularly help clients submit same-day offers. While we prefer to have more time so that we can help you with research and due diligence, thanks to our technology we can expedite the process.

Question 13

Does contextRE have anything to do with the recent National Association of Realtors settlement?

Accepted Answer

Realtors have been sued because they refuse to negotiate on commissions. Luckily we are not part of those lawsuits due to our transparency. Real estate agent fees have always been negotiable, but the NAR settlement made the issue more public that the "standard commissions"  for real estate agents are sometimes too expensive. Rene has been around before these NAR settlements, but now more and more people have more awareness that companies like us exist.

Question 14

How does contextRE's pricing model work?

Accepted Answer

contextRE earns a low fee that is usually paid by the seller. If the seller offers a commission that is higher than our fee which is very likely because of the way we write offers,  then you receive the rest of the commission as the homebuyer. Some contextRE clients have received over $50,000 as a rebate!

Question 15

Does contextRE help arrange private showings?

Accepted Answer

Yes! contextRE will arrange  private showing for any property that you are interested in. As long as seller gives us access. While we like to do same day showings if possible, sometimes the properties are tenant occupied and we need to give sellers and tenants a much more advanced notice, at least 24 hour advance notice.

We price ourselves in actually showing properties. Other companies just hire people who simply open the door for you. We believe that is not full service real estate.

Question 16

What if I don’t like the agent I'm working with?

Accepted Answer

No problem. While we pride ourselves in having agents with high level of emotional intelligence, and with strong real estate capabilities, we understand sometimes people are not a match. We can always switch agents if necessary.

Question 17

Do you help with bidding wars and counteroffers?

Accepted Answer

Yes. While our lowest tier of services does not include that, we genuinely want you to have a good experience and most of our plans help you throughout the entire negotiation process. We coach you on negotiation tactics, escalation clauses, offer strategy, open house strategy, and anything we might know from the other party so that we can get you the best guidance that we can.

Question 18

Does working with you hurt my chances in competitive markets?

Accepted Answer

No. We are experts in competitive markets and making offers in  competitive markets is one of our strengths. By nature of our brokerage, we might win offers because we might not ask for a 2.5% commission and that helps your offer be much stronger.  Plenty of times offers are won by a small amount, and we offer that competitive edge that big brokerages like compass, Keller Williams, EXP and others cannot do.

Question 19

Can I submit multiple offers at the same time?

Accepted Answer

We do not recommend this, and it can put you at risk. But there are some occasions were this might make sense. We take your situation and contextualize it to better  support support clients into submitting multiple offers. We track each offer and help you not be liable for multiple offers.

Question 20

Do you help me find a home, or do I bring them to you?

Accepted Answer

Both. WE want you to help us understand what your taste is and what you are looking for. We suggest the big platforms like, Zillow, Redfin, Trulia, or Realtor.com. At the same time, due to our extensive network we sometimes have off market properties that fit your criteria. We also help you expand your search to help you discover places you didn't know you might like.

Question 21

Do you have off market properties?

Accepted Answer

Yes. Because we are extremely communicative, and we work in so many places, we often come across off market properties, or coming soon properties.  we can often schedule private showings for off-market homes so that you don't have to compete with so many other buyers.

Question 22

When can we schedule private showings?

Accepted Answer

We accommodate to your schedule. I pride myself in being able to figure out access within the hour. Typically can schedule with about a two hour notice, and we do private tours seven days a week as early as 6am and as late as 10pm. We understand that some might have non standard work schedule.

Question 23

How do we get a lower mortgage interest rate?

Accepted Answer

We work with trusted lenders who may offer competitive rates. While you have the freedom to choose whoever you want to work with, we try to find out ways to lower the entire costs of home ownership as much as we can, include mortgage interest rates.

Question 24

Should I get a home inspection?

Accepted Answer

Yes, you should absolutely always have a home inspection. Without a home inspection, you are at risk of having surprises after you buy the home.

Question 25

How much do Home Inspections cost?

Accepted Answer

Based on our last transactions:
 Home Inspection: ~ $500
 Roof: ~$100
 Termite Inspection: ~ $250
 Foundation: Starting at around $600

Question 26

Do I need to pay for a home inspection?

Accepted Answer

Depending on the location of a home, it might be good to pay for inspections. For example, buyers in the bay area are accustumed to having inspections done before buyers submit an offer. In Los Angeles, buyers know that as buyers they need to purchase their own inspections since that is the norm.

Question 27

Do you host open houses?

Accepted Answer

Yes! The open houses are hosted by our broker, and when not available, our in house team, not outside agents, which is really typical for other flat fee " full service" brokerages.

Question 28

Can I sell my home while living in it?

Accepted Answer

Yes. While it is not recommended. We understand that it might be necessary. We create a schedule to help us coordinate open houses and private tours. There are ways to help you buy before you sell! So that might be an option for you. If you are able to later move out, we help with the regular home prep services if you hire us to do so.

FAQs

Find answers to commonly asked questions about our real estate services and how we can help you in achieving your property goals.