Are you buying a home? What is a home buyer rebate and how to understand thing term? Simply said a home buyer rebate is a term for when a buyer’s agent refunds a percentage of their commission to the buyer (usually 1%). The biggest advantage is that rebates make home-buying more affordable. You can get up to $16,000 back, which is not a small amount of money.
Home buying process
So, what do you need to know about this and how to be fully prepared for a home buying? The process may seem complicated, especially if you are a first home buyer or you are buying a house overseas and you don’t have any experience.
A buyer rebate depends on the place where you are buying a home. It is not the same if you are buying a home in Florida, California, New York, New Mexico, etc. Real estate agents offer rebates to stand out and gain new clients and they try to give the best offer.
Why an agent would refund a portion of their commission? This is a common question because people don’t understand why will someone refund? The main reasons are marketing and advertising. Every real estate agent want to have new customers. A real estate agent who will give money back can acquire more clients in the future and earn more money instead. It is a good business plan and many agents practice this.
Choose a good real estate company to get a good home buyer rebate
A key to have a successful home-buying process, you should hire a reliable and reputable real estate agent. Get recommendations, explore companies in the city where you are buying a house, learn how to avoid fraudulent real estate companies. It is like choosing a moving company for your relocation. Moving will be simple and easy if the mover is experienced and reliable. Find top agents willing to negotiate a real estate rebate and spend less money. Be pre-approved by a reputable lender and narrow your home search and you will be able to negotiate rebates in a seller’s market.
Talk to your real estate agent about a home buyer rebate and if you find anything strange and unfamiliar to you, ask openly. It is a big financial step, so you need to know all the details. Don’t research only online. Homebuyer rebates are legal in 40 states in the USA – states, where it is illegal, are Oregon, Alaska, Iowa, Missouri, Kansas, Oklahoma, Tennessee, Mississippi, Alabama, and Louisiana. So, if you are buying a home in some of these states, you should not count on it.