Home Buyer Rebates
We Rebate a fair portion of a home buyer’s, real estate agent’s commission, offered by the seller, back to you (the home buyer), through closing.
You receive the full confidence and advantages with utilizing a professional brokerage, and net more money on your real estate transaction! Be frugal with money by working with a REALTOR looking out for your bottom line. It’s a ‘winning’ situation!
Buyer rebate percentages vary case to case, based on the complexity of the transaction.
Contact 512rebates at (512)614-7073 to speak with an efficient and experienced REALTOR
or send rebate questions to email@example.com
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Are rebates taxable to me as the buyer?
Rebates are not considered taxable income. A recent IRS ruling which states that a rebate we provide you will not be considered income, but rather a lowering of the purchase price:
The IRS determined in Ltr. Rul. 200721013 that certain commissions received by real estate brokers that were passed along to their home-buying clients were neither reportable payments to the brokers nor gross income to the clients.
How is this all free to me as a buyer?
The seller pays the commission on a home you buy. A real estate agent rarely charges you, the buyer, for their services unless agreed through agreement ahead of time. That’s why you pay the same price for a home whether or not you use a real estate agent: The seller usually has already agreed to pay the listing agent a fixed commission – say 6%. So whether you buy the house by yourself or through an agent, the listing agent gets a 6% commission. Therefore, in most cases you cannot approach the seller for a discount, since the seller is paying 6% no matter what – either 6% to the listing agent, or a split of 3% to the listing agent and 3% to your agent. (Remember, this is where we come in: we give you part of our 3% in the form of a rebate).
How do you make money?
We keep a smaller percentage of the commission than most agents do and they’re happy to do this. They feel that you deserve a rebate when you are actively involved in the search process. Today’s technology enables you to perform some of groundwork traditionally provided by an agent. This frees the agent’s time to focus on the part of the deal the agent does best: negotiating contracts, investment confidence, & guiding you through to settlement.
Does the rebate have to be listed on the HUD-1 statement, or can it be given after closing?
According to Fannie Mae guidelines and federal laws, all credits must be given on the settlement statement (not after closing). Failure to disclose the payment to the buyer on the settlement statement can constitute a “false statement to a lender” (a federal crime), and also a violation of the License Law and Commission rules. You can read what a state real estate commission wrote about this federal statute. As long as the rebate is listed on the HUD-1, it is perfectly fine in the majority of states, and most lenders do allow the rebate on the HUD-1. However, if your lender will not allow the rebate on the HUD-1, then the only way for you to get the credit would be to have the seller lower the sales price by the amount of the rebate. It is the buyer’s responsibility to ensure they have selected a lender who will allow the rebate on the HUD-1 statement. It is very rare that a lender would not allow it.
What is a HUD-1 Statement?
The HUD-1 is a standard form produced by the Housing and Urban Development Authority. The HUD-1 is often referred to as the closing statement because it must be used at all closings and details the monies owed by the buyer to be paid to the seller. Our network of agents provide your rebate directly on the HUD-1 (so long as your lender allows it – see the next question), meaning you can bring less cash to closing.
What’s the difference between a pre-approval letter and a pre-qualification letter?
Your lender will give you a pre-qualification letter after s/he has done a brief analysis of your financial situation. This may or may not include checking your credit. However, the letter will usually say it’s contingent on various factors, such as the verification of what you’ve told them. A pre-approval letter is more thorough, and will include a credit check. This letter is more likely to say that you’re approved for a home as long as your financial situation doesn’t change (i.e., you don’t buy a car while you’re trying to buy a house, etc.) Some sellers or builders will require a pre-approval letter, and few won’t.
Is Our firm directly affiliated with homebuilders like Pulte or Toll Brothers?
No, We are a real estate firm offering rebates to buyers. We represent you, the buyer, while at the same time offering you the rebate. (This means you save money! A lot of money… $2,000 to $20,000.) As we like to say, “Don’t make a $10,000 mistake!’
If the seller pays you a 3% commission, and you pay part of that back to the buyer as a rebate, then what if the seller is offering less than 3%?
An agent in our network will offer you a rebate based on the ratio of the seller’s commission. He or she will work the details out with you before you begin your search, and will put it in writing.
Will I have to pay more money for a real estate agent to represent me when buying a home?
No! There is no cost to the buyer to have us represent you when buying a home. You pay more when you don’t have an agent because you forfeit your rebate!
Here’s how it works:
New Homes: The builder charges a price for a newly constructed home. If you make an offer with a real estate agent at your side, the builder will pay your agent a commission (part of which we would give back to you). However, if you buy that same home without an agent, the builder will still charge you the same price, but you will not be eligible for a rebate. By law, the builder can only pay a commission to a licensed realtor. But you don’t have to believe it from us – go ahead and call a few home builders and ask them if they’ll pay the commission directly to you.
Resale homes: A real estate agent typically charges the seller 6% of the price of the home to list it. If a buyer shows up with a Real estate agent, then both agents split that 6%. However, if you show up and buy with no Realtor, the listing agent just keeps the whole 6%. The listing agent most likely has agreed to charge the seller less if they act as an intermediary agent. However, when you use us as your buyer’s agent, we will credit a fair portion of this 3% back to you. Using us as your buyer’s agent includes our transaction Coordinating services and our full legal fiduciary duties which comes with using a professional Texas real estate agent. Thank you in advance for your business.
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