Real Estate Commission Rebate – An Innovate Real Estate Tactic
In the last decade, an immense rise has been noticed in the number of innovative real estate tactics. This rise has led to the introduction of different ways of buying or selling homes. Besides the innovative services offered, several new pricing models have been introduced in the real estate industry. Pricing models offer consumers custom incentives for each real estate transaction they make.
The US Department of Justice states that – “Consumers living in the states permitting the option to choose innovative brokerage options, such as rebates can potentially save thousands of dollars on commission payments.”
So what is the real estate commission rebate all about? Let us check that out below –
What is a Real Estate Commission Rebate?
A real estate agent is usually paid a commission when representing a buyer or seller in a real estate transaction. When a portion of that amount is provided to a home buyer following the sale it is called a real estate commission rebate. Also known as realtor rebate, commission refund, buyer rebate, or realtor credit. Sellers who receive will usually save by paying a lower listing fee to their agent. These rebates are a great way for home buyers and sellers to save a great deal of their home equity by paying less. Some realtors refund a set portion of amount regardless of the purchase price while some of the realtors offer a varying percentage.
What is the source of the money for the commission rebate?
Typically, real estate commission on the sale of a home is 5-6 percent of the total sale price, it is then divided between the agent of the buyer and the agent of the seller, which means each of them get 2.5-3 percent of the total sale price. The home buyer commission rebate is taken out of the agent’s commission and is usually credited towards buyer’s closing costs at settlement. A real estate commission rebate to seller is usually negotiated as a lower listing fee prior to listing the home.
Why do some real estate agents refund a portion of their commission?
There are different reasons to agents refunding a portion of their commission to their clients when buying or selling a home. For agents who truly believe in this practice and their clients, it is a win-win where the buyers/ and sellers are able to have a strategic advantage over others and the real estate agents end up with happier clients and more repeat business and referrals.
Which types of homes qualify for real estate commission rebate?
Generally, all types of homes qualify for real estate commission rebate including single-family homes, condos, multi-family homes as well as townhomes. However, some realtors only allow the rebate on certain types of homes or standard transactions. So make sure to consult with your agent about the types of homes they cover under their rebate model.
Conclusion:
Magnolia Realty is a renowned realtor in DC and MD with more than a decade of experience. They offer the best real estate commission rebate which helps buyers save thousands of dollars on the purchase of their dream homes.