Did you know that when you buy a home, you could have the opportunity to receive cash back worth thousands of dollars?
Some real estate agents are now operating on the basis that buying a home will be more interactive, with buyers researching and viewing homes for sale without the real estate agent being present. In return, the areal estate gent can rebate a substantial portion of their sales commission, which is paid by the seller, back to the buyer at the time of closing.
Buying a home has traditionally involved having a real estate agent show you home listings for sale based on the criteria that you are looking for, and when you find the right home, your purchase offer is presented to the listing agent.
In order to get a cash rebate, the process is basically the same, except the real estate agent representing you as the buyer, typically does not go with you to view the home listings. Instead, your agent can provide you with the home listing information, or you can research homes for sale from websites like Realtor.com.
To view a home, you could call the listing agent to make an appointment to see the property, and tell them you have an agent that you are working with, but they are not available to show the property. Listing agents are required to show their clients property to potential buyers, which is what they are getting paid to do.
Other than that, the rest of the process of buying a home is mostly standard procedure, such as, having your agent submit your offer, negotiate terms, handle the required disclosures, provide you with guidance and support.
If you don’t have a real estate agent to work with, another option is to ask the listing agent if they will rebate a percentage of their selling commission if they were to also represent you as the buyer’s agent. Most listing agents should be willing to work with you, since they would be earning a sales commission, in addition to the listing commission that the home seller pays them.
How much of a rebate can you get? In a typical real estate transaction, the agent who represents the buyer receives a sales commission from the seller’s proceeds at the close of escrow. The amount of the commission has traditionally been 3% of the sales price as the industry standard. Some real estate agents are offering to give their clients up to half, or even more, of their commission. For example, if you were to buy a $400,000 home, a 1.5% cash rebate would be $6,000, which could be applied to your closing costs, or deducted from the price of the home.
That’s like getting paid several hundred dollars an hour, just for driving yourself around to look at homes for sale, and a little less hand holding from your real estate agent.