Buying a new home can be a very trying but rewarding process. In most cases, buying a new home will be the most costly purchase that you make in your lifetime. One of the recent real estate trends that are making it easier for potential buyers to step up and get into a new house, the real estate rebate or commission. The process is quite simple, buy a home and get commission rebates, and they can be quite large to say the least.
What is the Real Estate Rebate?
The real estate rebate is an incentive that your local real estate agent or agency offer potential buyers in exchange for utilizing them as the agent in the sale. The rebate works like this, upon closing of the property, the real estate agent will give the buyer cash at the agreed percentage. In the case of a house costing $300,000, the new buyer can expect to receive approximately $3,000 in the form of cash as closing.
Is the Rebate Only Available as Cash?
The real estate agent will discuss with the potential buyer the options available as far as the real estate rebate or commission. While cash at closing appeals to a large majority of buyers, there are other very attractive offers available. The agent could offer free services during the sale, like paying for home inspections, radon testing, or even the closing costs. Some agents offer buyers gift certificates that they can use after they move into their new house that will save them money on services they are going to need after moving in.
How Else Can the Rebate Benefit Buyers?
Consider for a moment that you are going to be getting around $3,000 at closing the form of a real estate rebate. Knowing that you have that money coming, you could opt for a larger home that was just out of your price range, and use the money to cover the extra costs involved with a slightly higher mortgage. Even if the bigger house added a few hundred dollars to the mortgage payment, with $3,000 coming, you have about 15 months of money to cover that added cost.
The benefits of the real estate rebate are numerous, and most importantly, they are negotiable. When you are considering two different agents and one offers 10% of their commission and the other 33%, that can be a difference of a few thousand dollars in your pocket once the sale of the home is complete.