It is actually possible for you to save thousands of money when buying a home when you will work with a real estate agent who will agree in paying you a rebate.
Rebates actually can be through the form of a cash refund after closing the home or it could be a non-cash incentives in order to encourage using the service of the broker. These incentives may include the case of closing cost payments, gift certificates or perhaps other services such as home inspections or to pay the cost of the movers.
An example in this case is when a home is going to sell for about $200,000 and it has a 6% commission, the total commission on the sale of the home is going to be $12,000. The broker who represents the buyer will be able to get half and the broker who is the one representing the seller also gets half. There are also some brokers of the buyer who will give up about ? of the commission as rebates. In such cases, the buyer will be able to get $2,000.
There are however some states that limits the use of rebates. They mostly limit with the use of rebates if you are working with more than one real estate broker at the time fo the transaction.
Homebuyer rebates are usually negotiated through the one-on-one basis which in most cases is usually between you and the agent. Your ability in negotiating will determine the amount of rebate that you are going to get. For you to be able to get a higher rebate, you should consider shopping around and to interviews for different agents so you could compare on the quotes until you will be able to find an agent who will be willing enough in giving you a large rebate. But, you should never sacrifice quality and at the same time it is hard to find a top agent who is very willing to offer you a rebate.
If in case you are in the search for an agent who is in fact best at both quality and price, this may take several hours to do interviews and to also do negotiations. Though it is really important to push for the best terms and take note that a long and unpleasant negotiation is not really the best way for starting a relationship with an agent.
A real estate broker actually use rebates in attracting new customers in a way which retail stores use rebates. Through offering rebates, a broker could help buyers through buying bigger home, getting settled in the new home and in covering expenses like closing costs, surveys and home inspections. An addition to these kind of benefits is that a real estate broker providing rebates makes less money, which is why they wish to close the deal fast in order to reduce on the time necessary for the transactions.