Earn a Real Estate Commission Rebate the Next Time You Purchase a Home
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by: sarawilliams
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Real estate commission rebates are a novel way to attract home buyers. Traditionally, real estate brokers have been paid percentage based commissions that are divided between selling and buying brokers after closing. Despite higher sale prices during housing market booms, potential home sellers are usually not very pleased at the prospect of paying high commission rates, and potential home buyers hesitate before committing themselves to large mortgage loans. These sellers have recently found relief from those high commissions through flat fee real estate services but, until now, that relief has not been extended to buyers. Here is where real estate commissions come in.
Real estate commission rebates help buyers buy homes they may otherwise not be able to afford. The reasoning behind real estate commission rebates is based on the fact that 21st Century home buyers most likely have found their homes through a search of the Internet, not with the exclusive assistance of a broker; these buyers feel that they should share in at least a portion of the commission. You cant fault buyers for asking for a rebate. It makes sense that computer savvy home buyers would locate their own homes on the Internet and should not have to pay commission for that same service that they, and not their broker, performed. Generally speaking, real estate commission rebate brokers represent buyers during contract negotiations and at other times during the closing process when those buyers interests need protecting; for this level of representation they will either receive a straight salary or return a portion of their earned commission at closing.
Real estate commission rebate services are severely limited or prohibited altogether in some states, so you may not be able to take advantage of this service where you live. These services are also not practical for buyers planning a move to a different city or state. In those circumstances, buyers really need a broker with knowledge of local neighborhoods to guide them to the area that is right for them.
Even if you live in a state where real estate commission rebates are allowed, not all selling brokers will embrace the idea with open arms. Some of them are unwilling to work with buyers who are not represented by a licensed broker who will open lockboxes and show homes. Still, it would not be wise for selling brokers to limit exposure to their properties, particularly in a cool real estate market. If you are Internet savvy and prefer to view online listings on your own rather than with the help of a broker, you should give real estate commission rebate services a try. You may just save yourself thousands of dollars that would be better used toward your new home.
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