Frequently Asked Questions about Home Buying, Selling, and Commission Rebates
If your question isn’t answered below, please contact us directly.
Buying FAQ
What is a home buyer rebate?
A home buyer rebate is a portion of the real estate agent’s commission that is given back to the buyer. It is usually used by buyers to pay closing costs and prepays.
What can the Home Buyer Rebate be used for?
The home buyer rebate can be used to reduce closing costs, buy discount points (buy down interest rate), and any other fees that may come up. Buyers usually pay somewhere between 1% and 3% of the home’s value in closing costs.
Do I need to pay taxes on a home buyer rebate?
No. Since you receive your buyer commission rebate as a credit at closing, it is not considered taxable income.
Can I receive a home buyer rebate if I'm buying a new construction home?
Yes, absolutely. You will always receive 50% of any purchase. New home builders factor agent commissions into their pricing and do not offer discounts if you choose not to use an agent. Instead, they keep the commission for themselves. It’s in your best interest to work with a rebate agent because it’s essentially free money and free representation throughout inspections and lending.
How much will my buyer rebate be?
The amount of money you can save with a home buyer rebate varies depending on the purchase price of the home and the amount the seller is offering. Typically, sellers give 2.5-2.8% of the purchase price, and you will receive half of that back. Use the savings calculator to see what you’ll save.
Why Would You Give Up Half Your Commission? Whats The Catch?
There’s no catch! I just don’t believe it should cost 3% of the sale price to help you find your next home when the work stays the same no matter the purchase price. Since I’m not with a big-name brokerage, I get to keep 100% of my commission, which allows me to split the commission with my clients instead of my brokerage.
How Much Are Closing Costs?
Closing costs are fees and charges associated with the purchase or sale of a property. Buyers usually pay somewhere between 1% and 3% of the home’s value in closing costs. These costs typically include expenses such as appraisal fees, title insurance, taxes, attorney fees, home inspection, homeowners’ association, transfer fees, origination fees, and other related charges.
Are home buyer rebates legal?
Yes, home buyer rebates are legal in most U.S. states, but regulations regarding rebates vary by state. Some states have specific laws governing rebates, while others have no regulations at all. It’s essential to check the laws in your state and discuss any concerns with your real estate agent.
Do I need to disclose a home buyer rebate to my lender?
Yes, it’s essential to disclose any home buyer rebates to your lender, as they may affect your mortgage approval process. Lenders typically require full disclosure of all financial incentives received as part of the home purchase transaction.
Selling faq
How much do you charge to list a home?
We charge only 1% to list your home, rather than the 3% that traditional agents typically charge.
How does your 1% listing fee compare to traditional agents?
Our 1% listing fee provides the same comprehensive services as traditional agents who typically charge 3%. We ensure you receive full-service representation, including marketing, negotiations, and guidance throughout the selling process. If you have any specific needs or questions, let us know, and we’ll work to accommodate them.
Do you offer staging services?
Yes, we offer staging services for an additional fee. We work with several different staging companies and can negotiate the staging fee to best suit your needs and enhance the presentation of your home for potential buyers.
What does your listing service include? Are there any hidden fees?
You won’t find any hidden fees here. Our comprehensive service covers everything you’d expect from a top-tier agent:
We advertise your home on major platforms such as MLS, Zillow, Redfin, Trulia, Realtor.com, and many others. Professional photography ensures your home is showcased in its best light. We leverage social media to attract potential buyers effectively. You’ll receive personalized attention and expertise in pricing, negotiation, and contract management to guide you through a seamless transaction.
We advertise your home on major platforms such as MLS, Zillow, Redfin, Trulia, Realtor.com, and many others. Professional photography ensures your home is showcased in its best light. We leverage social media to attract potential buyers effectively. You’ll receive personalized attention and expertise in pricing, negotiation, and contract management to guide you through a seamless transaction.
How much can I save buying and selling?
You can save an average of $25,000 in commissions when you sell and buy with us! Save 2% on commission when you sell, and receive half of our commission (1% to 1.5%) when you buy.
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