One marketing tool used to attract buyers to a brokerage is rebates. A portion of the commission offered by the seller’s broker to the agent bringing the buyer is credited/rebated to the buyer at or after closing.
Imagine buying your dream apartment in the United States. You worked hard to save up for it. You searched online and were assisted by an expert real estate broker to find the perfect place. You completed your purchase, but to your surprise, you got a huge commission rebate check from your real estate broker!
It may sound too good to be true. However, a realtor rebate commission is the most important topic traditional real estate brokers are not telling you. Buyers can get cash back when buying a property in the US. This means significant savings for you that can offset closing costs or simply put more money back in your pocket.
Commission Rebates in NYC – A Smart, New-Fashioned Approach
Thankfully, there is a fairer, smarter approach called a buyer agent rebate or realtor rebate commission. This new approach enables buyers to get more financial benefits when they buy a home or apartment in the United States.
The concept is simple. The buyer’s broker gives a portion of that commission back to the homebuyer in the form of a refund or rebate.
So, what is a Realtor Rebate Commission?
If we put it simply, it is cash back at closing. But there is more to it than just this.
As per the UD Department of Justice, “commission rebates are generally calculated as some fraction of the broker’s commission. This can result in thousands of dollars being returned to the consumer.”
A buyer agent commission rebate in other words can be said as, money that a buyer agent will refund to you during closing.
When a buyer purchases a home, a huge chunk of the purchase price goes to pay off commissions to the agents involved.
At Magnolia Realty, we provide full service for a more reasonable fee and credit our buyers with 1.5% of the sales price at settlement. We offer the largest rebate offered by a realtor in Maryland and Washington DC.
Once you identify the homes that you are interested in, we will step in and also provide you with full service representation to help you build your equity. Our rebate is applied towards closing costs at the time of settlement and reduces the cost of your home purchase by 1.5 % of the sales price. We have a minimum fee of $6,500.
How Does a Realtor Rebate Commission Work?
When representing home buyers, an agent is usually paid at closing by the seller. The payment is done in the form of a commission payment. The agent would then credit the part of the commission to the buyer.
At Magnolia Realty, we also typically do not charge any fees to the buyers. When any property is listed on the MLS, the listing agents are required to offer some compensation to the Realtor that represents the buyer. Our fee is based on that.
And when a property is not listed in the MLS or is sold by the owner, we negotiate our commission with the seller with prior knowledge of the buyer. We do not have any admin fees.
Contact Magnolia Realty if you want to learn how much cash back you can get from your Realtor when buying a new home in Washington DC.