Did you know you could get thousands of dollars back when buying a new home? A new home rebate is a portion of your real estate's commission. Realtors offer rebates as a fixed amount regardless of the purchase amount or offer a percentage depending on the home's value. Alternatively, the agent can offer a rebate on the purchase price of the new home. Some agents offer credit rebates, while some offer cashback. Real estate agents use new home rebates to make their commissions appear lower and attract more customers.
Save up to 50% Commission
For example, if your choice home is going for $300,000 and the broker's commission is 5%, it means the commission would come to $15,000.
50% would go to the seller's agent, which would be $7,500
50% would go to the buyer's agent, which is also $7,500
Your commission rebate would come from the buyer's $7,500. If your agent promised 50%, the agent would give you back $3,500. It could be in the form of credits to offset your closing costs, including:
Loan origination fees
Alternatively, new home rebates are on the home purchase price. For example, with a purchase price of $300,000 and a rebate of 0.05%, you would get $1,500. You must weigh the type of new home rebate that gives you maximum savings.
When evaluating home rebates you must sharpen your negotiation skills. First, you must ask if the agent offers rebates from the start because not all agents offer these rebates. Then, when negotiating, you should show the agent why you deserve the rebate. For example, you can offer to do more legwork in searching for a new home and reduce the agent's workload.
You can also pick offers from several real estate agents and tell them you are looking for the best new home rebates. You get more negotiating power and higher rebates.
Work With a One-stop Shop
If you are unsure of your negotiating skills, you can work with a real estate service specializing in rebate homes. You only need to tell them your preferred location and price range. Then, they will work with real estate agents to get several offers, from which you pick the best. This approach would work better if you are busy and have limited time for negotiations and legwork.
Would you like to buy your dream home and make good savings from your purchase? Talk to a real estate agent about new home rebates.