| Some Real Estate Buyers Get a Cash Rebate |
| Articles - Mortgage |
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Saving money, especially in today's economy is a popular subject. Some home buyers have found a way to save thousands of dollars on their real estate transaction.
Saving money, especially in today's economy is a popular subject. Some home buyers have found a way to save thousands of dollars on their real estate transaction. Home buyers with internet access are able to take a more active role in researching and viewing homes for sale. The result can be a time saving process for the buyer and the real estate agent. Because time is considered to be money, home buyers are able to convert their online efforts into cash. Access to real estate listings online that were once available only to agents, provides home buyers the option to negotiate a commission split with their real estate agent. Many agents that represent home buyers are open to sharing their sales commission in order to save time and effort on a transaction. Before a buyer makes an offer to buy a home, an agreement can be made with a real estate agent to represent them in exchange for a share of the agent's commission, which is paid by the home seller at the close of the transaction. How much of a rebate a buyer can get depends on two variables: the share of the commission, which is negotiable with the agent; and the final sales price of the home. An Example: A common commission rate that a home seller offers to a buyer's agent is 3%. If the home price is $350,000, and the buyer negotiates a 50% share of a 3% commission, that would amount to a rebate to the buyer for $5,250. Cash rebates can be paid to the buyer at the end of the real estate transaction, or the money can be applied to closing costs, providing there are no restrictions from the buyer's lender, or state laws that regulate real estate transactions. There are a few states that do not allow buyers to receive cash rebates. It's possible to get a cash rebate on the purchase of an existing home, or in some cases, a new home. Some builders offer commissions to real estate agents who bring buyers in to buy a home. Builders usually require the buyer's agent to be with them when initially visiting the models, and when signing paperwork. Home buyers who are willing to spend more time researching and viewing homes on their own could save thousands of dollars that would otherwise be spent on an agent holding their hand. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Current rates and information on a home loan, plus information on Chula Vista New Homes |