By now you probably have heard all about real estate rebates and how the Justice Department pushes to legalize real estate commission rebates. If you are not familiar with these rebates and are in the market to buy a house, this might be the time for you to get familiar with them.
The real estate rebate is unlike other rebates where you have to buy something to get something after filling out paperwork and waiting months to see your money. The real estate rebate is simple in premise and beneficial on many levels for the home owner. Simply put, your real estate agent agrees to give up a small portion of their commission in exchange for you using them to handle the transaction. You were going to need a realtor to close the deal anyway, so why not work with a realtor giving you a slice of the commission?
The problem and why the Justice Department pushes to legalize real estate commission rebates, there are some realtors who feel that this practice is taking too much from them. These realtors feel comfortable making several thousand per transaction and don’t want to give any back, they just want more clients. Smart real estate agents understand it is a numbers game, and what you lose in one commission, you could make up in referrals from one happy customer sending several new clients your way.
The Justice Department understands all the benefits for the homeowner, and how this could actually move inventory and stimulate the economy even faster. When home owners on the fence about selling in a slow market now have the opportunity to close with thousands more in their hands, this sweetens the deal and gets more inventory on the market. Many homeowners cringe at the idea of paying for inspections, lawyers, and that realtor commission too. On a $250,000 house sale price, the client could be getting back between $2,500 and $3,000 at closing, this is a lot of money to many people.
Some states however have frowned upon the practice due in part to pressure from realtors who have been in the industry for years and do not want to start giving anything back. These realtors feel the current system is fine, and would rather make a ton on one sale than have to give any back and need to work harder to make it up. As this practice gets more popular, it may only be a short while before all states participate in the real estate rebates. For more info visit: RebatesonRealestate.com