One of the popular real estate trends this year is the real estate rebates. This commission, or rebate, is offered to the buyer by the real estate agent in the hopes they will purchase their home through the agent and their agency. For making the commitment to work with the agent, the home buyer is rewarded at closing with a monetary reward that can be quite substantial.
Here are some of the reasons the real estate rebate is making home buying less expensive:
1. Buying Bigger Homes – Perhaps the home buyer is at their limit and can not compete with a higher priced market for the home they truly want. When a real estate agent offers a cash rebate at closing, the buyer can utilize that money in advance and go for the bigger home knowing they will be reimbursed at the close of the deal.
2. Starting Off on the Right Foot – For many home buyers, the day of closing is very costly. In many cases, these buyers are coming up with enormous amounts of cash at closing, walking out of the lawyer office with their new keys and not much of anything else. The real estate rebate on a $300,000 house is approximately $3,000, and that money can go a long way those first few weeks in the house paying for food, moving costs, repairs, and new furniture.
3. Paying Costly Expenditures – Another way that the real estate rebate can benefit the home buyer, the agent can offer the rebate in the form of services for free. Instead of the potential buyer having to pay for home inspections, closing costs, or surveys, the agent can pay for those out-of-pocket instead of the cash at closing. This allows the potential buyer to not have to keep forking out hundreds of dollars during the lengthy buying process.
4. Aggressive Real Estate Agent – When the real estate agent is willing to hand over a huge percentage of their commission as part of the real estate rebate, they are obviously making less on the transaction. This means they want to work harder and faster to close the deal, and this means you will not have to be part of a long and drawn out closing due to a very busy real estate agent.
The real estate rebate is beneficial for the home buyer in many ways. Finding the house of your dreams and getting handed cash at closing can really help to get your new journey off on the right path.