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 between 50% of our commission in the form of a rebate. Numbers below are based on a 3% Coop to Buyer Agents. The Buyer Agent Commission is offered by the Listing Brokerage to Coop MLS Members. The actual Buyer Agent Commission, the "BAC" is published over the Multiple Listing Service, commonly referred to as the "MLS".
$ 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 a traditional real estate sale, the seller hires a Listing Brokerage and Sellers Agent. An amount usually between 4-6% is the fee to the Seller at closing. The Listing Brokerage then offers a portion, (usually half) of that to Buyer Brokers and their respective member Agents.
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 10 states. Competition in Real Estate: Questions and Answers
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 (50% rebate):
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) Contact Us for Rebate Amount
Submit contact form and indicate the MLS #s or addresses of properties you are interested in.
4) Make Offer and Close
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 (we typically rebate 50%):
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 credit it towards your closing costs or price reduction. Typically mortgage companies do not allow you to take money outside of closing. The rebate must be put in the sales contract and best best way is to pay your closing cost that you would normally out of pocket. This would be the same thing as writing you a check.
Please contact us with more questions.