Real estate rebates for new and existing homes have increased in popularity. A rebate is a refund that you as a buyer receive from your agent when you close on a home. This rebate is a percentage of the home's purchase price and comes from a portion of the commission from your real estate agent.
Ever wonder why real estate rebates are now a possibility? What would motivate agents to give part of their commission to you the buyer? Read on to learn these four reasons why real estate rebates are possible.
1. Buyer Behaviors Have Changed
Many realtors are willing to give buyers part of their commission because buyer behaviors have changed. Buyers often search online for homes without an agent until they're more serious. This trend means realtors do less work and spend less time with clients for the same commission fee.
Many agents feel they can offer a rebate because they perform less work per transaction. Agents are still your legal representative and assist during your closing.
2. Markets Are Flooded with Realtors
Some markets are flooded with realtors who must compete with one another to find clients. Some realtors offer a rebate as a way to find new customers or to encourage buyers to choose you over an agent that does not delve in rebates.
Often realtors look for motivated buyers that already know which home they want to view and make an offer on. Realtors offer a rebate because these buyers have already done much of the work on their own to find a home they're ready to buy.
3. A Home Is Hard to Sell
Sometimes a particular home is harder to sell because it is in a less-than-desirable location or is very upscale. In these cases, a realtor can advertise a rebated home in order to find a buyer who can afford the extremely expensive price tag.
Or, a rebate entices someone to purchase a home in a depressed area. After the transaction, these savings can help the new owner upgrade or remodel their home.
4. Realtors Really Want to Help Their Buyers
Rebates are legal in most states, and often a realtor will choose to rebate a home simply because they want to help buyers get into a home. Buyers with a limited budget can afford a home price they wouldn't ordinarily qualify for. In these cases, a rebate benefits buyers as it helps a realtor enhance their business reputation.
For more information, contact a local real estate office, like Crawford Realty Inc.
Share18 July 2022
After I decided to buy a new home, I realized that I probably needed to prioritize the things on my wish list. Since I am not wealthy, I realized that I probably couldn't get everything that I wanted out of a single home--at least, not this time around. Fortunately, I worked with an incredible real estate agent who helped me to figure out which type of property would pay off in the end. Finding a home took a lot of time, but I am really pleased that I found the right one. This blog is all about learning to prioritize your home hunting wish list so that you can have the home and financial situation of your dreams.
