Real estate rebates are monetary rewards given by the real estate agent to the homeowner at the close of their property. These rebates are used as an incentive to work with particular real estate agents, and they offer numerous benefits to the homeowner. Not only can the size of the rebate be negotiated, it comes in many forms other than simply cash at closing.
Here are some of the reasons real estate rebates are good for consumers and why you must inquire about them before you sign a real estate contract with an agent.
1. Cash at Closing – Whether you sell your home for a profit or not, a home selling for $300,000 could put $3,000 in your hands at closing. This money can go a long way, especially if the closing funds are tied up by the lawyers for days or weeks after the close of the house.
2. Free Services During Sale – Homeowners have plenty of added expenses that start mounting as the closing approaches. Money for moving expenses, inspections, and repairs, can drain a bank account quickly. Many real estate agents will offer to pay for these services out of their commission as a form of real estate rebate, freeing up your obligations and money to use elsewhere.
3. Ability to Negotiate – Choosing a real estate agent to sell a home can be challenging if you have nothing to compare one agent to the next. The real estate rebate can make that choice easier, choosing an agent who is going to pay you $3,000 to sell your home versus one that does not offer any incentives.
4. Competing in a Tough Market – When there are several houses for sale in your area at the same price and you can not afford to drop any lower, the real estate rebate can be leveraged to help you compete and gain more attention from potential buyers. If you know at closing you are getting $3,000 in a real estate rebate, you can drop the price of the house $3,000 under fair market value and get the lion-share of traffic in your home.
5. Closing the Deal Faster – If an agent is offering you a real estate rebate, they are obviously making less money. This is a huge incentive for them to close a deal faster, which means you get out of the house and on to the next phase of your life quicker.
The benefits of the real estate rebate for the homeowner are numerous, be sure to inquire with any potential real estate agent before you sign the contract to see how much of a rebate they offer.