Did you know that in over forty states, buyers can qualify for a real estate rebate when they purchase a home? A home rebate is a cash payment from the real estate broker to the buyer of the home. The rebate typically comes from their commission and can help homeowners save a lot of money on the purchase of a new home. Such commission rebates are a great deal and more buyers should take advantage of this system. If you’re planning on buying a new home, here’s everything you need to know about getting a home rebate.
How Does A Home Buyer Rebate Work?
When a home is sold, there is a standard 6% commission rate that is split 50/50 between the seller’s real estate broker and the buyer’s real estate broker. Legally, the buyer’s real estate broker is allowed to offer a commission rebate as an incentive to help buyers close on a home. The buyer agent rebate is typically 1% of the 6% commission and can be returned to the buyer as a gift certificate, part of the closing costs, or even to pay for home inspections.
How Home Rebate Savings Breakdown
Imagine you’ve purchased a new home for $300,000. That $300,000 includes the 6% commission for the seller’s and your real estate brokers. The seller’s broker takes their 3%, or $9,000. The other $9,000 goes to your real estate broker. From there, they can offer you 1%, or $3,000 as a realtor rebate. You can then use the $3,000 for the extra costs of moving, as part of your down payment, or even put it toward your mortgage.
Why Would A Real Estate Broker Give Me A Rebate?
Every real estate broker is different. Some have no interest in offering part of their commission as a rebate. While others, see offering a buyer agent commission rebate as an incentive to homebuyers that helps them gain more business and sell more homes. In order to ensure that you work with a real estate broker that offers rebates there are a few things you can do:
1. Before hiring a real estate broker, ask them directly if they offer rebates.
2. When it comes time to close on a home, ask for a home rebate during the negotiation process.
3. Work with a real estate company that incentivizes their brokers to offer rebates.
The first two are great options, but they do not offer a guarantee of a rebate. However, the third option ensures that you will receive a buyer rebate when you buy a new home.
Florida Homes Rebates all of our real estate brokers offer new home rebates. Every homebuyer that works with us has the opportunity to qualify for a home rebate program. Simply fill out Buyer Brokerage Agreement and the Client Registration Form, then being looking for your dream home. Once you find it, give us a call and we’ll make sure your rights to a rebate are protected and we’ll make sure you get 50% of the earned commission rebate. To take advantage of this program, give us a call today!