It appears that more and more real estate agents are offering real estate commission rebate to attract home buyers. Just try searching the internet for “real estate rebate” or “discount real estate agents” and you’ll get an idea how many agents are now offering real estate rebates. Does it mean it’s a good marketing strategy?
Many real estate professionals will argue that it’s not good practice to offer rebates for a variety of reasons but whether it’s true or now, it appears that real estate rebates are now becoming mainstream.
If you’re a home buyer wondering how rebates work, you can visit the website of the Department of Justice here. And before you ask an agent for a rebate, make sure rebates are legal in your area. The DOJ also published a list of states that allow and prohibit rebates on their website. You can read the list here.
So if you’re planning to buy or sell a home in the near future, will a real estate rebate affect your decision in choosing a real estate agent to work with?
August 6, 2017 | Mister D
If you’re in the market for a house, you’re probably aware by now that some real estate markets are super hot and bidding wars are common. If you’re not an all-cash home buyer trying to stick within your budget, how can you can compete?
A Rebate Can Help a Home Buyer in a Bidding War
One home buying strategy is to find a real estate agent offering a rebate out of his or her real estate commission. For example, a buyer’s agent earning a 3% commission in a $500,000 sales transaction makes $15000. If that agent offers a 50% rebate to the buyer, you’ll receive a $7500 rebate at closing. This generous rebate can make a difference especially if you’re willing to make a purchase offer beyond the list price of a home. The U.S. Department even published a detailed report on how real estate rebates make buying a home less expensive.
Although there are many agents willing to help buyers and sellers by giving rebates and discounts, not all of them are openly advertising it to the public.
There’s a website called Agents for Less, a nationwide directory of “discount” real estate agents offering real estate rebates and discounts to home buyers and sellers. The site allows buyers and sellers search and compare real estate agents offering incentives such as rebates by location. If you’re planning to purchase a home in the near future, looking for an agent offering a real estate rebate is a good strategy to help you compete with other buyers.
July 1, 2017 | Mister D