How You Can Earn a Real Estate Commission Rebate on Your Next Home Purchase
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by: sarawilliams
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Real estate commission rebates are an innovative concept in the real estate industry. 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. Sellers have found relief of late through flat fee real estate services that eliminate high commissions but, until now, buyers have not had access to similar financial relief. That is where real estate commission rebates come in.
Real estate commission rebates give buyers the financial power to buy homes that they may not otherwise 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. Real estate commission rebate brokers will generally represent buyers during contract negotiations and at other times during the closing process when their clients interests need protecting; for this they may receive a straight salary or reimburse their clients a portion of commission collected 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 brokers are leery of working with buyers who are not represented by a licensed broker who can 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 fluent in Internet and feel comfortable viewing online listings, why not give real estate commission rebate services a try if you are in the market to buy a home. At the end of the day, you may just end up with thousands of extra dollars that you can put toward your new home.
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