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An Unusual Cash Rebate For Home Buyers
August 30, 2010 by man
Filed under First Time Home Buyer Michigan
Although the federal tax credit has expired, some home buyers still have the opportunity to cash in on another kind of rebate, which can amount to several thousand dollars.
A growing number of home buyers are using online tools to find and view homes listed for sale, which can be an efficient, time saving process for home buyers and real estate agents.
Taking advantage of a good opportunity to convert their time and effort into cash, savvy buyers are tapping into a creative source of funds to help pay for their closing costs. Online access to home listings, which used to be available only to real estate agents, is now empowering home buyers with the ability to negotiate cash rebates from real estate agent commissions.
Many agents who specialize in representing buyers are open to sharing their sales commission in order to gain more clients, while reducing their time expenditure. Before a buyer makes an offer to purchase a home, an agreement can be made with a real estate agent to represent them in exchange for a share of the agent’s commission, which is paid by the home seller.
The amount of money a home buyer can get from a cash rebate depends on two things: the share of the commission, which is negotiable with the agent; and the sales price of the home.
For Example:
A sales commission offered to a buyer’s agent by the seller may be 3% of the home price. If a home sells for $390,000, and the agent agrees to give a 50% share of the commission, the amount of rebate to the buyer would be $5,850.
Rebate money can be applied to the buyer’s closing costs at the close of the transaction, providing there are no restrictions from the buyer’s lender, or state laws that regulate real estate transactions. A few states do not allow rebates.
Cash rebates can be negotiated for the purchase of an existing home, and in many cases, a new home. Some builders are offering broker co-op commission to real estate agents who bring in clients to buy a new home. The buyer’s agent may need to accompany them when initially visiting the home models, and when signing the paperwork.
Considering the high cost of buying a home and the opportunity to save thousand dollars on closing costs, less hand holding from a real estate agent seems like a fair trade.
Written by R. Smith: Refinance, Home Mortgage Rates, New Homes San Diego
