Buying a home is a big investment. The decision to purchase a home is an important one. To make the home buying easy on your checkbook, you need to understand the Buyer Rebate / Cash Back Programs that offer home buyer rebates in the MD real estate market. Buyer Rebate Programs aren’t offered by most real estate companies. So it is for you to search & talk to them so that you can save money on your home purchase.
What is a Home Buyer Rebate/Cash Back?
Home buyer rebate/cash back is a rebate offered to the home buyer by a Realtor, from the commission obtained by the Realtor calculated on the purchase price of the home.
How a Home Buyer Rebate Program Works?
Usually the Realtor receives a 3% commission on the purchase price of the house from the seller. When the sale is completed, the 3 percent commission is disbursed to the Realtor by the Title Company. The Realtor can then offer the rebate to the buyer. The Realtor offers a cash back rebate to buyers who are savvy in their search and have a shortlist of houses they want to preview.
If the buyer is buying a home for the purchase price of $250,000, the usual 3% commission received by the Realtor calculated on the purchase price of the house is $7500. The Realtor can rebate a portion of the $7500 commission obtained from the seller. If the rebate is 2 percent on the $250,000 home, it would amount to $5,000.
The amount of rebate is based on the agreement between the buyer & the Realtor. The agreement to offer a rebate and the percentage of the commission given as a rebate is agreed upon by the buyer and the Realtor prior to they start the Buyer – Agent relationship.
Each Realtor has different conditions to rebate a portion of the commission obtained. You should check with the Realtor individually & confirm the terms directly with the Realtor. The terms have to be signed by both parties before the agreement is valid & for you to get a rebate.
For a simple and honest home buyer rebate in MD, look no further than Magnolia Realty. When you purchase a house through us you obtain professional buyer representation, and we assist further by sharing part of our commission with you up to 2.11% of the home’s selling cost. With us you are bound to get the best home buyer rebate in MD and the surrounding areas.