 Home buyers are looking for a means by which to reduce the cost of buying a home. The act of buying a new home is pretty daunting -- not to mention expensive. However, there is some relief to be found by taking advantage of a buyer rebate. Given the advent of the internet and the efficiencies that come with it, there is a somewhat new idea that has come about to help offset these costs. Rebates from buyers’ agents (many are Realtors®) to their buyers are an effective way by which to accomplish a lower transaction cost.
"Rebates Make Buying A Home Less Expensive" - USDOJ (Unites States Department Of Justice)* How so? Well, separate from the incentives negotiated with a home builder for a particular new home, a rebate from the buyer's agent generally gives thousands of dollars back to the new home buyer. Generally speaking, if a home buyer buys a home without their own licensed buyer broker (agent) , then the entire marketing fee (sales commission) that has been predetermined by means of the listing agreement for any particular home is retained by the builder’s agent or the overage is saved by the builder; however, if the buyer has engaged their own licensed buyer broker (agent), then that marketing fee will be split between the onsite builder's agent and the buyer's agent; thus, an extra incentive worth thousands can be passed along to the buyer by means of our home buyer rebate at closing. Irrespective of the price & terms that have been negotiated between the buyer and builder (or the bank if it is a foreclosure), the sales commission is generally still due at closing via a predetermined marketing agreement (listing agreement) between the marketing company (also known as the listing agent) & the home builder; if the property is a foreclosure, then the agreement would be with the bank instead of the builder. A portion of the sales commission is designated for the buyer's licensed buyer's broker if the buyer opts to be represented. If not, then the builder or builder's agent may retain the overage. What does that mean for the new home buyer? By working with us, the buyer still gets all advertised home builder promotions, discounts, incentives and/or anything else that can be negotiated -- plus a cash back rebate. There is no obligation to us. There is no charge from us. Use your own lender or any preferred builder's lender. It's that simple. What if I waive my rights to be represented by a buyer's broker (agent)? Generally speaking, you will be left on your own to fend for yourself on a myriad of issues -- and the entire marketing fee (sales commission) may be retained by the builder or the builder's onsite agents. You would also need to very seriously consider hiring your own attorney to look out for you -- which would most likely be an out-of-pocket expense. It’s important to know that the closing attorney in Georgia does not represent the buyer; the closing attorney only represents the lender and their interests. Even though this attorney represents the lender, the buyer pays directly or indirectly for this closing attorney through closing costs (settlement fees). How can our rebate be used by the buyer? Consult with your mortgage representative; but in short -- and possibly depending on the mortgage company’s guidelines of the buyer’s loan (FHA, VA, Conventional) -- rebates can be used against closing costs, an interest rate buy-down for the entire 30 years, reduce your sales price or given as a rebate check after closing to assist with moving expenses. In the latter scenario, the rebate check is processed within 72 Hrs. after closing. With an interest rate buy-down, the rebate lowers the mortgage payment. With any of these methods, rebates do (1) one of (4) four things: - lowers the monthly mortgage payment
- reduces the amount of money needed at closing
- reduces the sales price by the amount of the rebate
- puts money into the buyer's hands after closing
These rebate-savings are so important to the home buyer that the USDOJ (United States Department Of Justice) has been vehemently fighting all across our nation so that all states allow rebates to home buyers. The USDOJ has also set up a website, funded by our tax dollars, to illustrate the importance of these rebate-savings: www.usdoj.gov/atr/public/real_estate/rebates.htm |