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. These incentives may include the case of closing cost payments, gift certificates or perhaps other services such as home inspections or to pay the cost of the movers.
One example in this case is when a home sells to about $200,000 and it has a 6% commission, its total commission is going to be $12,000. The broker who represents the buyer will be able to get half and the broker who is the one representing the seller also gets 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 usually limit on the use of rebates if you work with more than one real estate broker during the transaction time.
Homebuyer rebates are usually negotiated through the one-on-one basis which in most cases is usually between you and 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.
If you are looking for agents who are best at both quality and price, this will be able to take lots of hours to do interviews and negotiations. Though it is really important to push for the best terms and take note that a long and unpleasant negotiation is not really the best way for starting a relationship with an 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 to buy bigger homes, getting settled to a new home as well as in covering expenses like closing costs, surveys and on 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.