It’s possible to actually save thousands of money if you are going to buy a home if you consider working with a real estate agent who agrees in paying a rebate.
Rebates actually can be through the form of a cash refund after closing the home or it could be a non-cash incentives in order to encourage using the service of the broker. The incentives may include closing cost payments, gift certificates or other services like home inspections or in paying the cost of the movers.
An example in this case is when a home is going to sell for about $200,000 and it has a 6% commission, the total commission on the sale of the home is going to be $12,000. The broker who is representing the buyer will take half and the broker who represents the seller will likewise get half. Some brokers of the buyer’s also gives up about ? on the commission as a rebate. In such cases, the buyer will be able to get $2,000.
There are however some states that limits the use of rebates. They tend to limit the use of rebates when working with more than one real estate broker at the time of the transaction.
A homebuyer rebate is mostly negotiated by a one-on-one basis that’s often between you as well as the agent. Your ability in negotiating will determine the amount of rebate that you are going to get. For you to be able to get a higher rebate, you should consider shopping around and to interviews for different agents so you could compare on the quotes until you will be able to find an agent who will be willing enough in giving you a large rebate. You must never sacrifice quality though and it can be hard to find a top agent who is willing of offering a rebate.
When looking for an agent who is best when it comes to both price and quality, it will take lots of hours in doing interviews and negotiations. Though it is very important to consider pusing on the best terms and to remember that any long and unpleasant negotiation is not really the best way to start a relationship on the agent.
Real estate brokers in fact use rebates in order to attract new customers in a way like retail stores and use rebates. Through offering rebates, a broker could help buyers through buying bigger home, getting settled in the new home and in covering expenses like closing costs, surveys and home inspections. An addition to these benefits is that real estate brokers who will give rebates are making less money, which is why they likely would close the deal fast in order to reduce the time necessary for the transactions.