What is the Alokee Bonus, when do I get it and how can I spend it?

When you buy a home using Alokee, you will receive a significant cash bonus. Why?

Every listed home has a published commission (usually 2.5 - 3% of the sale price) that must be paid to the brokerage that creates the offer and performs other real estate duties for the Buyer. By using Alokee, you will be using our technology to make the brokerage process much more efficient. Alokee takes advantage of this efficiency and passes the savings on to you.

For example, if you use an old school agent, the agent manually performs many services, such as researching neighborhoods, arranging and escorting buyers to showings, and developing and submitting written offers.  But some buyers prefer to do many of these activities themselves yet still are required to pay high fees to a buyer’s agent to close the deal. Using Alokee, you can research homes, schedule showings, and automate the offer generation process on our site. Technology replaces the friction of the human back-and-forth of traditional home buying.

Let’s use an example of a $1,000,000 home for simplicity sake. If the published commission is 2.5%, that means $25,000 must be paid to the Buyer’s brokerage upon a successful closing. It doesn’t matter how many showings the Buyer’s agent completed, how much negotiation they did, how much time they spent on the deal or even if they went to the house or not. Even if the actual buyer (aka “you”) did most of the work yourself, the Buyer’s brokerage gets $25,000. Using Alokee, Alokee keeps only $8,900 of the commission and refunds you $16,100 (or $25,000 minus $8,900).

What you do with this $16,100 is entirely up to you.  But there are two good options to consider. First, working with your lender, you can use it to pay your lender’s closing costs at closing. What this means is that if your lender fees were $17,000, instead of paying $17,000 at closing to your lender, you would only pay $900 ($17,000 total lender fees minus $16,100 Alokee cash bonus). In summary, this means your Alokee Bonus saved you $16,100 cash at closing ($16,100 you would have otherwise paid the lender).  

A second good option for your Alokee Bonus is to take cash payment after closing. So, using this example, when you close on your new home, Alokee would immediately write you a check for $16,100 for you to use on anything (literally anything you choose - the money is yours). In this case, you will get the money as fast as we can intake the Buyer agent commission and issue you a check. Usually this takes about a week, though we do it as fast as we can.

The important thing to know is your Alokee bonus is yours to spend as you please. You can spend it at closing (if your lender allows it) or after closing. In any case, you will get an Alokee bonus and it’s yours to spend!