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How Do You Negotiate Real Estate Rebate With Realtors?

By Author: Aya Netanel
Total Articles: 7

Want to get the biggest benefits from home buyer rebate program? If so, it makes buying a home affordable. You get a chance to do whatever you want with the money, keep it in savings and use it for future purposes.

Generally, a buyer’s agent receives half of the 6% commission that the seller pays to sell a home and then divides their proceedings with their managing broker. Buyer’s agents can compete for home buyer business by refunding a portion of this commission to the home buyer. However, the Internal Revenue Service has ruled out that a home buyer rebate program isn’t taxable. Rather, it’s an adjustment to the buyer’s basis in the house that effectively minimizes the home’s buying price.

The Working Principle of Real Estate Rebates

Real estate agents offer real estate rebates in order to stand out from the rest and get prospective clients. However, it’s same like a rebate offer you may see at a store, except in this case, you could save a lot of money. The realtors offer home buyers cash refunds or non-cash incentives to appeal them to use their service.

Most of the times, home buyer rebate programs are cash payments from the real estate agent to home buyers after closing. They can take the form of a gift certificate, closing cost payment or free services like home inspections of moving services.

How do realtors feel about home buyer rebate program?

There are real estate agents on both sides of the spectrum. On one hand, some realtors are personally offended by buyers even asking for a rebate. On the other hand, most buyers’ agents provide real estate rebates due to the demand and services making rebates more accessible. The ability to receive a rebate is one of the main reasons to work with a buyer’s agent.

The willingness of real estate agents to offer a rebate depends on market conditions and home prices. For instance, if a realtor works in an expensive market, he is able to offer a portion of a rebate from their commission and still have an important profit margin.

Finding a realtor that’s a great negotiator in the neighborhood you want to buy, they realize that real estate rebates are the way to gain a new client competitively. This way of thing is slowly adopted by some of the top real estate agents available there.

How do you find real estate agent willing to negotiate real estate rebates?

Primarily, there are two ways available to negotiate the offer.

The Hard Way –

If you’ve already decided an agent or a group of agents you like, you can ask them if they could offer you a rebate. In the world of negotiation, you have to give something to obtain something. You can tell them you’ll do more search for homes on your own.

Primarily, hire them for getting their useful advice and deep expertise on negotiating. You could try playing hardball by reaching out to several random real estate agents and mention a specific rebate. When real estate agents respond with interest, you can tell them that you will count on an agent that can give you a better deal on real estate rebates.

The Better Alternative –

Use a real estate service that has competitive real estate agents. They should compete to work for you. You can check out experienced local real estate agents, read their reviews, talk to them over the phone and meet them in person. You can select your city, desired price range and compare proposals from several top notch real estate agents.

Your real estate agent won’t feel awkward in negotiating and keep your information private until choosing an agent. This way, you will get to see exactly how the commission is broken down and you get to save money.

How do you negotiate rebates in the seller’s market?

Remember that, in a seller’s market where the inventory is low all time, a buyer’s agent will help you visit many homes and submit many proposals before earning their commission. To be an attractive buyer, here are a few considerations to increase the number of proposals you will get and obviously the amount of rebates:

1. Be pre-approved by a well-known lender.

2. Narrow down your home search.

Final Consideration –

Getting a good home buyer rebate program may be important to you. Magnolia Realty believes that an experienced agent on your side is worth more than just a rebate. Our real estate agent can bring in valuable market knowledge and negotiating skills to make sure that you never overpay for a home. Get connected with a professional realtor at 301-775-0175 and let us offer you the best real estate rebates!

More About the Author

Magnolia Realty is a full-service real estate brokerage servicing Maryland and Washington DC. Our goal is to help home buyers and sellers achieve their real estate goals while keeping as much equity as possible. Our Home Buyer Rebate is the largest Realtor Rebate in both Maryland and Washington DC

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