If you’re new to the idea of a ‘buyer agent commission rebate,’ here’s what it basically means:
Upon closing, as a buyer, your agent will refund a certain percentage of the money they earn from the commission.
A customer incentive used by many agents, this rebate is a split of the commission they earn when they deal with you, as a buyer. Also known by a number of different terms such as buyer closing credit, realtor rebate, home buyer rebate, and home buyer cash back, etc., this percentage is actually a fee that’s paid by the seller of the property in question.
Going into Detail
Typically, most sellers pay their agents 6 percent in commission, as per the listing agreement. What happens here is that the selling agent splits this commission with the buyer’s agent, in accordance with the rules set by the local MLS broker association. Your agent—as the buyer’s agent—receives 3 percent in commission for bringing you to the seller.
Now, if you don’t have an agent working for you, the listing agent (seller’s agent) gets the whole commission. But since 90 percent of all new home buyers are represented by an agent, that’s a moot point.
Why Do I Get the Rebate?
Simply put, it’s a good sales tactic. As said before, the buyer agent commission rebate is designed as a customer incentive.
And while some agents pay this credit through gift certificates or even free services such as home inspections, others simply give a rebate to help sales along.
Is it Legal?
Yes, but only in 40 US states so far. Nine US states, however, have outright banned commission rebates because of a strong protest from the realtor community, those states being Kansas, Louisiana, Mississippi, Alaska, Alabama, Tennessee, Oregon and Oklahoma. The final state, Iowa, prohibits rebates that involve more than two real estate brokers.
Aside from these though, within the 40 states that do offer legal commission rebates, you’ll have no trouble finding a real estate firm that follows these commission structures.
Working with Builder Buck$
As a leading company in Texas, Builder Buck$ can help you learn more about Rebates on New Construction Homes Colin County TX and pre-existing homes as well.
All you have to do is contact us. With our help, you’ll be able to benefit from our services in the long run. We offer real estate rebate Dallas County TX and also in Travis, Collin County, Bexar County and Denton and other areas of Texas.
