How do real estate agents make money beyond commissions

#The Real Story Behind Lianjia’s “No Mortgage Fee”#

At first, I only knew that Lianjia charges 2% — expensive, but the so-called mortgage-fee waiver was basically羊毛出在羊身上. Turns out there’s more to it.

A client reached out for help. They felt Lianjia’s rate was too high and tied to a renovation loan, so they wanted to go through us. After verifying their qualifications and confirming they could qualify for a lower rate, we brought the paperwork to their home and started the process — only to be blocked by Lianjia at every turn.

I was puzzled. The real estate agent and the mortgage broker are separate; clients are free to choose, and there’s no forced bundling. Besides, if the client took a mortgage elsewhere, Lianjia would still get the same money while saving the hassle of handling the loan. So why insist on taking over the mortgage work?

After thinking it over, there’s only one explanation: they get kickbacks from the bank.

Lianjia’s brokerage fee is twice what competitors charge. The so-called “no mortgage fee” is already baked into that premium. Buyers are already stretched thin, draining six wallets to afford a home. Yet Lianjia exploits information asymmetry, pushing them toward high-rate banks, and layers on another cut. It’s disheartening.

……

As shared in the group chat, the gist is this: agents deliberately inflate your mortgage rate, then pocket the difference.