How do I even make an offer if I don't have a real estate agent create it for me?
We have an automatic offer generator that fills in an offer based on an MLS listing code. ZVR will supply the full version of the listing when requested by a customer. It automatically picks the right forms, places the right signature blocks and fills in the data from the listing. We have a team including a lawyer you can request to a review from. On a full service package, we can also give you commercial advice such as pricing. We do ask customers to fully understand the legal risks of making unconditional offers before making them.
Once it is filled and potentially reviewed, the offer is transmitted to the listing brokerage/seller through our partner brokerages. The offer is then negotiated traditionally by our experienced negotiators (note that a year's worth of negotiations for a traditional agent is about a week for a ZVR agent). We will relay information from the listing agent to you and assist with the negotiation.
What is the difference between the basic package and the full service one?
The chief difference is commercial advice and dedicated service agent. Customer support through email, WhatsApp chat, and booking calls through Calendly is available to all customers. All customers get support from our experienced negotiators.
In the basic pack you are expected though to fetch usually through the listing agent pre-inspection reports that are not with the listing, work orders from the city, etc. The difference is the availability of an agent that you can call directly if need be, it is someone who is available to do that for you, and even advise using their experience on commercial matters.
The basic pack is for anyone who wants to do the work themselves, while the full service pack is for those who want more traditional support with home buying. On a basic pack a negotiator may say "we believe this is the seller's bottom line", but on a full service pack they may add "and we still believe that it isn't a good price".
So how do I decide on a package?
Choosing between our Basic and Full Service packages depends on your preferences, needs, and the level of support you desire in your home buying process.
Basic Package:
- Cost-Effective: More affordable, suitable for those looking to save on expenses
- Independence: Designed for individuals comfortable with a hands-on approach
- Includes six offers
- 30 minutes of lawyer time
Full Service Package:
- Guided Experience: Comprehensive support and expert guidance
- Dedicated Agent Support: Personalized assistance
- Extended Offers: Ten included offers
- Enhanced Legal Support: 1 hour of lawyer time
The fee for both packages is paid from a large cashback provided by ZVR. Consider your preferences, budget, and desired guidance level when making your decision.
Do I have to pay ZVR the package flat fee up front? What if I do not close on a home?
No, the flat fee is only payable if you complete a purchase with ZVR, and we almost always deduct it from the cashback.
How much will the whole transaction cost me?
This depends on the nature of your purchase. In addition to the ZVR flat fee there are optional à-la-carte services such as viewings with a ZVR Showings Network agent. You would also need to pay the lawyer fee to process the transaction, which you can understand by reading this article. Our lawyers are involved in ZVR purchases from day zero: you get ZVR's unique offer clauses, a lawyer is available to review offers, and deep integration with other processes such as mortgage that ensure transactions close on time. You get 30 mins of extra lawyer question time in the basic pack and 60 mins for the full service.
In addition the cost of the transaction depends on the cost of title insurance, which all lenders demand. You can read about it here.
Overall then the cost is your flat fee package if you close, the cost of the conveyance, and any à-la-carte fees. The median for basic pack customers is about $5,200 for everything without any amount on account of HST (much of which is often paid by the listing brokerage already).
Can I use my own lawyer? Do I have to get a mortgage through ZVR?
You have the option to use your own lawyer; however, it's essential to note that our system is deeply integrated to allow for maximum efficiency, cost-effectiveness, and comprehensiveness. If you choose to use your own lawyer, additional communication and legal work may be required, and we ultimately are selling our own legal services. If you choose to use your own lawyer we must increase the realty flat fee by $2,000.
Neither must you get a mortgage through us. What we provide you is an intelligence network and a live updating rate sheet for all lenders in Ontario. On top of that we have some direct deals with banks, even those that do not work with mortgage brokers (as an example, CIBC and RBC won't work with brokers). We can help you secure the lowest rates. We even have special program where instead of the lowest rates you can have extra cashback, up to 6% extra, in exchange for the rate being higher.
How do I view homes?
There are three good ways and one fourth method that can backfire. The easiest one is an open house if there is one, as you can walk right in. The second is using any third parties. We have had some clients who registered with us after already having done a showing with brokerages like Redfin or HouseSigma whose business model is to do showings and then entice a buyer with an ostensibly "free" offer that they can do. We do not mind if you already did a viewing with a third party, but ensure you are free and clear of any obligations through anything you sign with them.
A third option available once registered with ZVR is the Showings Network: it is a network of ZVR agents who work on an hourly basis to ensure you can view homes. They have a license and a pulse, and (unless you are on a full service pack) provide you Zero Value™.
The fourth option we generally do NOT recommend is using the listing agent. There are two versions of every listing on the MLS: what you see, and the full internal listing that only agents can see. The full listing contains "broker notes", which are notes kept away from public view. Sometimes (around 10% of listings) these notes state that the buyer agent's commission will be reduced if the seller's agent has to do their job and show the home. Some of them are sneaky and even edit the listing between your viewing and offer submission if you have them do the showing.
Can I submit any offer I want, even low-balls?
Up to a reasonable limit. All offers are reviewed manually before being transmitted. You have a duty to act in good faith both when making an offer and when dealing with us. So while low-ball offers are allowed, conduct in bad faith is not. We may refuse to transmit offers if we believe you are acting in bad faith, and may terminate our business relationship with this case.
Is there customer support?
Our support team is available to help you, and you can submit offers at any time. You can reach the customer support either by chat, email or phone. While the idea behind our platform is to enable independent home-buying process, we are always happy to help you with any questions you might have and provide you with guidance and support.
How do I get full listings?
There are two types of listings, those available to the public and internal ones only available to agents. For registered users, ZVR provides you with numerous digital tools that facilitate your home-buying process by allowing a full listing request. This is a complete listing with "broker notes", almost always hidden from buyers on other real estate platforms. We have developed a and will soon release a Chrome plugin that allows you to get complete information about the listing on websites such as realtor.ca.
Where do I find sold data?
Numerous websites publish it, including even realtor.ca. Some other examples are House Sigma, Rew, Zillow, and Bungol. Understanding the market value of a home is quite similar to understanding the value of a used car, and we highly recommend taking the proper amount of time to do thorough market research.
When do I get the cashback?
Typically 15-20 business days after you close on a home. We must invoice the listing brokerage, and once they pay, we have the funds available. However, it is possible to even get it at close toward your downpayment with our unique ZVR Double Down™ downpayment assistance program.
Where does this cashback come from?
A cashback of tens of thousands of dollars sounds unbelievable, right? The answer lies in understanding how real estate and mortgage brokering commissions work:
A seller who hires a listing brokerage pays them a commission as a percentage of the sale price (often 5% in Ontario). It is typically split evenly between the listing brokerage (seller side) and the co-operating brokerage (buyer side). The co-operating brokerage then receives 2.5% in Ontario. ZVR rebates this commission right back to you! This is possible by providing digital tools such as an offer generator to do everything an agent would have done along with our experienced support. We charge and deduct from your cashback a flat fee only if you close the deal.
But it is the seller that pays the agents! A buyer's agent is free?
This is a big misconception, and if you believe it real estate agents have a bridge to sell you! The seller might pay the agents, but the buyer pays the seller. This also assumes a seller can be successfully extorted to pay a commission. ZVR demonstrates the enormous costs baked into the sale price, and gives the option of unbundling them. The average commission for a buyer's agent in Ontario is more than an average household's annual savings, and many buyers prefer to save this amount.
Why do you call real estate associations an informal cartel?
It isn't just our opinion, but the conclusion of an academic paper published by a veteran employee of the US government in the Berkeley Journal of Law. Property transaction costs are far higher in North America compared to other countries like the UK, Australia, Iran and Israel. Prices are high in Canada, yet provincially rather uniform. This price fixing is monopoly behaviour, and should be dismantled through legislation. The majority of Ontarians use a real estate agent when buying without the intent of paying them, so as a seller you have a stark choice to make: pay the 2.5% + HST fee they demand, or potentially have a majority of buyers steered away. We are only against how agents get paid, rather than agents or their services as a whole.
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