The property market experienced a considerable slow down in the past few years and, as a result, realtors started offering more incentives to property buyers to use their services. Real estate rebates are among the most widely offered incentives. They give you the opportunity to save money.
How will real estate rebates work for you as a buyer? When a property purchase deal has been concluded, the agent of the seller and the agent of the buyer receive a commission from the seller. The total amount of the commission is usually between 5 and 6 per cent of the selling price of the property. This commission is split by half. When the commission is 6 per cent, each party gets 3 per cent.
The buyer’s agent that offers real estate rebates will provide a percentage of their part of the commission to the buyer. Each realtor decides on what portion of their commission to offer to the buyer. It can be as much as 50 per cent.
How much do you save as a buyer in monetary terms? Let’s say that you buy a home for $250,000 (which is around the average for many states in the country). Your agent gets 3 per cent of the sum. This is equal to $7,500. If you are entitled to 45 per cent of this amount, you will receive $3,375. This is certainly a considerable sum.
Is there a catch? The simple answer is that there is no catch. Real estate rebates are legal in most states and the US Department of Justice encourages others to allow them as they are considered a fair competitive strategy.
In general, these incentives are used by estate agents to attract more buyers and to expand their business. It is in their interest to keep their promise to you and provide the discount. That way, they will receive a positive referral and attract even more clients.
Any real estate rebates provided should not affect the quality of the service that you receive as a property buyer. You can expect a reputable realtor to take you personally to properties that match your criteria and to help you with all the legal paperwork for concluding the deal. Basically, you will enjoy the full service and a monetary benefit as well.
It is certainly worth taking advantage of the services of agents that offer real estate rebates. You will find the ideal property for you and save money. The amount will be sufficient for buying some new furniture and/or appliances.
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