Register in advance and Retain us as your Buyer Brokerage for Rebate
Can I choose my own lender? Absolutely, We do not profit from the loan you obtain. No points. No percentages.
How Much of a Rebate Will I Receive?
Typically, we offer 50% of our commission in the form of a rebate. (Based on a 3% BAC) Numbers below are based on a 3% Commission to Buyer Agents. The actual Buyer Agent Commission, the "BAC" is no longer published over the Multiple Listing Service, commonly referred to as the "MLS". *Real Estate Commissions are negotiable and are not established by law.
$ 300,000 Home = $ 4,500 rebate
$ 600,000 Home = $ 9,000 rebate
$ 900,000 Home = $13,500 rebate
$1,500,000 Home = $22,500 rebate
$3,000,000 Home = $45,000 rebate
What Is a Home Buyer Rebate?
Home buyer rebates, also known as commission rebates, are when a real estate agent who’s helping their client buy a home gives a portion of the commission they receive from the seller back to their client.
The buyer can use this rebate for their down payment, closing costs, to buy points on their mortgage, and in some cases, can even take the rebate as cash at closing. It’s important to note that if you’re using a mortgage lender to finance your home, they have to approve how you use the rebate. Many lenders won’t let you take the rebate as cash at closing.
Commission rebates allow you to afford a more expensive home, or to save on your down payment for your dream home.
In a sellers market, home buyer rebate is a powerful tool that savvy buyers can use to stand out from their competitors. If a home is listed at $400,000, a buyer that’s receiving a rebate could potentially offer $406,000—and pay the exact same amount as another buyer that offered $400,000.
For homes that receive multiple offers, this could be the difference between your offer being accepted, and months of searching for another home.
How Do Home Buyer Rebates Actually Work?
The graphic below shows how the rebate process typically works.
Home Buying Rebates
In the current real estate market, the seller hires a Listing Brokerage and Sellers Agent. An amount usually between 1-3% is the fee to the Seller at closing. The Listing Brokerage and Sellers Agent represents the Seller. You are entitled to representation. The Buyer may contract with a Buyer Brokerage and Buyer Agent for this representation.
The amount of compensation to the Buyer Brokerage is documented within this contract.
Where Are Home Buyer Rebates Legal? Utah? Yes.
Commission rebates are legal in 40 states, and the US Department of Justice supports making rebates legal in all 50 states. In fact, the Department of Justice actively investigates any organization that tries to regulate real estate commissions. The DOJ is also leading a broad effort to educate states about the benefits of competitive real estate commissions in an effort to legalize rebates in all 50 states.
This graphic from the Department of Justice will let you know if home buyer rebates are legal in your state:
Are Rebates Tax Exempt?
The answer is yes. The IRS says that a cash rebate paid to a buyer of property at or after closing is an adjustment in the price, and is therefore not taxable income to the buyer. ... Since they are not taxable income, such rebates need not be reported on Form 1099-MISC. We do recommend that you consult with you accountant for verification. We can rebate you in the form of a check after closing, reduction in sales price (this could lower your cost basis for property taxes), or pay closing cost.
The Process for existing homes:
1) Search for Properties
Search for property on your favorite website, i.e. Realtor.com, Zillow, Trulia, etc.. Sign up for new listings.
2) Identify Properties
If possible, drive by properties of interest. Narrow down your choices based on neighborhood, price, etc. See if the listing agent will show you the property but do not sign an agreement.
3) Make Offer with terms favorable to You, Negotiate those terms to a successful purchase contract.
4) Work through the terms of the agreed purchase contract, including due diligence, inspection, finance, appraisal and then on to settlement and Closing.
We can assist you with your home search, property tours, making an offer, negotiating a deal, writing the contract, and closing sale.
The Process for new home builders:
1) Contact us - BEFORE you sign a contract with builder, seller, agent or starting the process.
2) Make sure to list "Town & Country Apollo Properties, Lynn C Fillmore" as your agent, when visiting builders.
3) Close on your dream home and collect your rebate! We can simply write You a check upon receipt of Brokerage Commissions as Principal to the transaction. Or. Prior to closing, We can work to credit it towards your closing costs or a price reduction.
Please contact us with more questions.
