Purchasing a house is undoubtedly one of the most significant decisions you’ll ever make, and in Georgia, it can come with a hefty price tag. Beyond the home’s cost, several additional expenses can inflate your final bill by thousands of dollars. Closing costs, which can typically range from 2% to 5% of the home’s purchase price, contribute significantly. These costs encompass appraisal fees, mortgage fees, flood certification, private mortgage insurance, attorney fees, and more. The financial burden can seem overwhelming when you factor in ancillary expenses like moving charges and new furniture.
However, there’s a lesser-known secret in the real estate industry that can ease this burden – a strategy that few agents openly discuss. This secret weapon is known as a buyer’s rebate, a legal strategy endorsed by the Department of Justice that can save home buyers thousands of dollars.
But to fully appreciate the benefits of a buyer’s rebate, we first need to understand the concept of real estate commission in Georgia. This fee, paid to both the buyer’s and seller’s agents for their services, is typically a percentage of the home’s sale price. It’s only paid upon closing by the seller once the buyer has paid for the home.
Now that we’ve covered real estate commissions let’s delve deeper into the topic of real estate commission rebates
1. What is a Buyer Rebate?
Buyer agents sometimes offer a portion of their commission to the buyer as an incentive to hire them. This amount is called a buyer rebate. Some firms promise to reimburse a fixed sum – irrespective of the purchase price – as a rebate, while others provide a percentage of the home price or a percentage of their commission.
Buyer rebates can help agents attract more clients (home buyers) and increase their overall income.
Often rebates are stated in percentage terms rather than as a fixed value. This is because until the purchase is concluded, it is impossible to determine the precise payment amount collected by the buyer’s agent.
2. Where does a rebate come from?
The average real estate commission on a house transaction is around 6% of the sales price. This is shared in a pre-decided ratio between the buyer’s agent and the seller’s agent. If the agents have agreed to share the commission equally, each will receive 3% of the home price (i.e., half of the total commission).
So, if you purchase a $300,000 property, the buyer agent will normally earn a 3% commission or $9,000 on this home. If he offers a 1% rebate on the home price to the buyer, it works out to:
Buyer Rebate = Home price X 1% = $300,000 x 1% = $3,000.
Out of the $9,000 commission received by the buyer’s agent, the buyer will get $3,000, and the agent gets to keep the remaining $6,000.
3. What are commission splits? How do they work
In Georgia, as in many other states, real estate agents cannot receive direct fees on selling a property. All real estate agents are required to work under brokers. The seller’s broker receives the payment from the seller, keeps his commission, and distributes it further. He gives a portion to the seller’s agent and the remaining to the buyer agent’s broker. The buyer agent’s broker then takes his commission and gives the remaining to the buyer agent.
So the entire real estate commission is generally divided into four parts – shared by the listing agent, the listing agent’s broker, the buyer’s agent, and the buyer agent’s broker.
Let us understand this process with a simple example.
If a property costs $350,000 and the commission is mentioned as 6%, this would work out to:
Home price X 6% = $350,000 X 6% = $21,000.
Now, suppose this commission is split equally between the buyer broker and the seller broker – each will get:
$21,000 ➗2 = $10,500
The commission split between that agent and their brokers will depend upon the agreements they have drawn up. Let’s say, it is a 60:40 split in favour of the agents. In this case, the buyer agent will get 60% of the commission received by the buyer agent’s broker:
60% X $10,500 = $6,300
And the broker will receive the remaining 40%
40% X $10,500 = $4,200
4. How much is the buyer rebate in Georgia?
According to antitrust regulations, commission rates are not and cannot be harmonized. They are negotiable. The average commission rate in Georgia is 5.80 percent, slightly higher than the national average of 5.49%.
According to Zillow, the typical home price in Georgia is $300,885, so the average commission payout would be:
Average home price X Average commission rate = $300,885 X 5.80% = $17,301.
Remember that the buyer rebate is greatly impacted by the selling/buying price of the house. The costlier the house you buy, the more you’ll get as a buyer rebate.
A buyer rebate is offered as a percentage of the home price or the buyer agent’s commission. Let’s take a look at each of these situations.
4.1 Buyer Rebate, when expressed as a percentage of the home price
Redfin, UpNest, Clever Real Estate, Trelora, and others offer rebates as a percentage of the home price. See the table below.
| Realtor Website | Rebates based on home price |
| Clever Real Estate | Upto 0.5% |
| Upnest | 0.3 – 0.75% |
| Redfin | 0.22 % |
| Prevu | Upto 2% |
| Trelora | 1 – 1.5% |
Let’s look at how much the buyer rebate amounts to for a range of home prices in Georgia.
| Home Price range | Buyer Rebate as % of home price | ||
| 1% | 2% | 3% | |
| $250,000 – $300,000 | $2,500 – $3,000 | $5,000 – $6,000 | $7,500 – $9,000 |
| $325,000 – $400,000 | $3,250 – $4,000 | $6,500 – $8000 | $9,750 – $12,000 |
| $425,000 – $500,000 | $4,250 – $5,000 | $8,500 – $10,000 | $12,750 – $15,000 |
4.2 How much is the buyer rebate in different counties of Georgia?
Let us look at the following table representing the buyer rebates in different counties across Georgia. This time, let’s calculate it as a percentage of the agent’s commission.
Note: The values resemble an average overall cost.
| County | Median Home Price* | Commission as 5.75% of home price | Buyer Agent’s 50% share | Buyer rebate as 50% of buyer agent’s commission |
| Oconee | $477,212 | $27,439 | $13,719 | $6,860 |
| Forsyth | $217,441 | $12,502 | $6,251 | $3,125 |
| Cobb | $323,758 | $18,616 | $9,308 | $4,654 |
| Fayette | $440,347 | $25,320 | $12,660 | $6330 |
| Fulton | $430,538 | $24,756 | $12,378 | $6,189 |
| Gwinnett | $395,983 | $22,769 | $11,384 | $5,692 |
| Columbia | $292,307 | $16,807 | $8,403 | $4,202 |
| Cherokee | $428,056 | $24,613 | $12,306 | $6,153 |
| Houston | $195,126 | $11,220 | $5,610 | $2,805 |
| Clarke | $284,359 | $16,351 | $8,175 | $4,088 |
| DeKalb | $330,081 | $18,980 | $9,490 | $4,745 |
| Glynn | $297,582 | $17,111 | $8,555 | $4,278 |
| Chatham | $274,243 | $15,769 | $7,884 | $3,942 |
| Lowndes | $175,020 | $10,064 | $5,032 | $2,516 |
| Harris | $313,410 | $18,021 | $9,010 | $4,505 |
| Coweta | $353,126 | $20,305 | $10,152 | $5,076 |
| Douglas | $305,801 | $17,583 | $8,792 | $4,396 |
| Carroll | $265,819 | $15,285 | $7,642 | $3,821 |
| Camden | $244,226 | $14,043 | $7,021 | $3,511 |
| Lee | $228,951 | $13,165 | $6,582 | $3,291 |
5. How can you use the buyer rebate?
How you can use a buyer rebate will depend on the buyer rebate offered. The buyer rebate can either be in the form of cashback or closing credit. Contrary to a rebate given as closing credits, a cashback rebate is given as a cheque or cash once the transaction is complete.
5.1 How can a rebate in the form of cashback be used?
If the rebate is in cashback, you could use it for anything you wish – from buying new furniture to doing up the home or paying for some of the closing costs.
Cash-back refunds might not always offer the largest rebate compared to closing credits. However, the entire rebate amount is assured, unlike rebates as closing credits, since the latter depends on the final purchase price. Since you receive cash back after closure, the return does not affect your loan status – and will not require lender approval. However, disclosing all rebates to the lender is always prudent to avoid complications.
5.2 How can closing credit be used?
Buyer rebates in the form of closing credits make the home more affordable for the buyer. Closing credits are given to the buyer to reduce some of the out-of-pocket expenses of buyers, such as closing costs or other expenses. This results in the buyer having to bring less cash to the table while closing. You can use closing credits to pay for expenses such as escrow, appraisal, transfer, loan origination fees, or buying points on your mortgage.
A seller may even provide a buyer with a closing credit to reimburse house repairs or as an inducement to close the deal. Credits make a purchase more tempting to consumers on the fence about a purchase.
Rebates in the form of closing credits are subject to lender approval. A lender may limit how much rebate can be accepted and how it can be used.
When a buyer requests credits, they work with the seller to develop a fair price for all parties. The seller can accept, reject, or initiate a counteroffer in response to the buyer’s request.
5.3 Closing credits or Cashbacks?
Hiring a real estate agent or firm that gives cash back instead of commission rebates is always better. This is because cashback rebates can be used in whatever way you want. On the other hand, there are a lot of restrictions on closing credits and how they can be used.
6. Is buyer rebate legal in Georgia?
Yes, buyer rebate is legal in Georgia. Some agents may tell you that a real estate agent cannot split a commission with an unlicensed individual as per the RESPA (Real Estate Settlement and Procedures Act). However, this does not apply to the buyer since he is part of the transaction.
Some important points to keep in mind:
- On the Settlement Statement, the buyer rebate must be fully evident.
- Rebates as closing credits must be disclosed to all parties involved, including the lender.
- Even if the rebate is compensation for a service – for example, if the agent performs some work for you on the home you’re buying, this must be stated.
7. Is buyer rebate taxable?
No, a buyer rebate is not taxable. According to the IRS, a taxpayer is not required to record the payment as a credit at the closing of a real estate deal. A rebate is a reduction in the home’s overall purchase price rather than taxable income. If you buy a house for $300,000 and get a $5,000 rebate, the real cost of the house will be considered as $295,000.
It’s crucial to know that if you’re using a lender to finance your property, the lender will almost always have to authorize how you utilize the refund. Not every lender, for example, permits purchasers to get a refund in cash at closing.
8. Why do agents offer a homebuyer rebate?
In simple words: To stand out among peers and to attract new customers (home buyers).
Realtor agents offer home buyer rebates as a promotional marketing activity. It’s similar to a refund offer you may see at a shop, only you could save a lot more cash in this scenario. To persuade house purchasers to use their services, these brokers provide cash refunds or non-monetary incentives.
8.1 To make the home more affordable
Sometimes buyers feel that the commission is too high or the closing costs are not affordable. This could result in the buyer backing out of the deal. To make the home affordable, agents provide a buyer rebate.
8.2 To beat the competition
In a competitive market, an agent who cuts their commission will gain more customers. Some agents are against giving rebates, and some companies have built up a business by offering rebates. By offering rebates, agents try to beat this competition.
8.3 To reward buyers for their home-search efforts
According to NAR, 93 per cent of house buyers utilized Internet services to search for and purchase a property in 2018. With the advent of websites such as Zillow and Realtor.com, many homebuyers are doing more legwork during the home search process. Due to the lessened work pressure, agents can now work with many clients simultaneously. To reward buyers for narrowing their search for a home, agents don’t mind giving them a rebate.
8.4 Higher volume of business
Rebates allow agents to increase their volume of business. The high revenue more than makes up for rebates offered in individual transactions. This is a win-win situation for buyers as well as agents.
8.5 As an incentive to close the deal
Providing a high buyer rebate to home buyers helps close the deal faster, as buyers are keen to avail of such discounts. Buyers offered a high rebate may be willing to overlook minor issues and agree to close quicker.
8.6 To increase buyer loyalty
Offering a good rebate will discourage buyers from switching agents during the deal. Also, agents get good word-of-mouth publicity as more buyers would like to work with such agents, and their happy customers will spread the word. It pays to have a good reputation in a competitive market.
9. Which agents/websites offer buyer rebates in Georgia?
To hire the best agent, a buyer must first study the market and select the best match for his requirements. To simplify your job, we’ve gathered a list of the best realtor websites in Georgia that give rebates. It also has companies that help you connect with agents who offer rebates, besides a few local agents.
9.1 Clever Real Estate
This nationwide service is free and helps match the buyer with full-service realtors from top national and regional brokerages in each area (the likes of Coldwell Banker and Century 21). It also promises pre-negotiated rebates. There are no hidden fees and zero obligations. So there’s no danger in joining up and seeing which agents it suggests.
Clever claims to provide the finest pound-for-pound worth of any bargain brokerage or agent pairing service, along with cost savings, agency quality, and customer services.
When purchasers work with an agent recommended by Clever, they may be eligible for a cash-back return of up to 0.5 percent of the home price. You’d save $2,500 on a $500,000 property if the home qualifies. Clever stands apart from regional rivals who offer higher discounts, thanks to its excellent customer service.
Highlights:
- Clever’s associate agents all have proven track records.
- Agents provide comprehensive assistance to buyers.
- Essential services like agent match-making and contacting various agents for doubts and queries are free.
- Clever is well-liked, with an average customer rating of 4.9 out of 5 based on 1,512 reviews on the TrustPilot website.
9.2 Redfin
Redfin is a website offering incentives for home purchasers. The potential savings are real, and the organization has a remarkably good track record and brand image. According to data, the average Redfin rebate is 0.22 per cent of the house price. However, Redfin doesn’t mention a specific rebate amount per deal because the rebate amount and availability differ as per the location.
Keep in mind that the rebate offered by Redfin comes with its drawbacks. The lack of individual attention from agents may hinder some buyers’ home-buying experience.
Highlights:
- A user-friendly website with a simple user interface. Millions of people have downloaded Redfin’s home search app, which has a good rating.
- Regardless of whatever bargain broker you list with, you’ll have to sacrifice service quality, although the hazards appear to be less evident with Redfin.
- On review websites such as Google, Yelp, and Zillow, Redfin has an average customer rating of 3.9 out of 5.
9.3 SimpleShowing
SimpleShowing is a discount real estate brokerage. SimpleShowing has a team of agents assisting you throughout the buying process rather than one dedicated agent. It offers a rebate of up to 50% of the buyer’s agent commission on qualified transactions, up to a maximum of $15,000.
Buyers who visit five or fewer properties before purchasing a home will receive the full rebate. The refund amount starts to diminish after you’ve looked at six properties and reduces further as you ask for additional showings.
Highlights:
- SimpleShowing’s co-founders continue to deal with market participants on a one-on-one basis. The proprietors of a firm have a strong direct motive to provide excellent service rather than employees.
- The company’s business approach saves home buyers a lot of money
- The average customer rating for SimpleShowing is 4.9 out of 5, based on reviews across Facebook, Trustpilot, Google, and Zillow.
9.4 Trelora
This is a discount real estate brokerage that offers incentives for buyers.
If you’re a seasoned home buyer with a budget of less than $350,000, Trelora is a good option. You might earn up to half of your agent’s commission as rebates for properties in lower price categories, typically 1–1.5 percent of the purchase price. However, because rebates are capped at $6,000, it’s not a fantastic alternative for customers with larger budgets.
Trelora representatives deal with 20 times the number of clients as ordinary realtors, which could be a major worry. When dealing with that much volume, providing them with as much personal attention is simply not practical.
Highlights:
- Great commission rebates
- Trelora has a 4.7 out of 5 average customer rating based on 1,114 online reviews on top websites like Facebook and Google.
9.5 UpNest
UpNest connects you with a local real estate agent. It’s free to use, with no strings attached, just like all other agent-matching platforms.
However, after you’ve signed up for an agent, multiple agents will compete for your business. The notion is that competition will induce agents to provide higher rebates. You can select the best agents by checking out the rebate amount offered, their consistency and their ratings.
While many UpNest agents offer higher rebates, some customer reviews claim that the savings are typically minor – comparable to what you might negotiate on your own.
Still, one cannot deny that UpNest’s agents are well-chosen and experienced. The agents commonly quote rebates ranging from 0.3 to 0.75 per cent of the sale price. If you’re purchasing a higher-priced house, agents are more likely to offer larger rebates.
Highlights:
- Signing up is simple and straightforward, and you’ll be matched with an agent immediately.
- UpNest has one of the best customer dashboards. The offers that agents send through the dashboard are chock-full of important information that makes the agent shopping process go more smoothly.
- UpNest reviews on the internet are overwhelmingly good, with an average rating of 4.6 out of 3,794 total reviews based on Google, Facebook, Better Business Bureau and Shopper Approved.
9.6 Opendoor
Opendoor is a prominent real estate firm. After you close in selected markets, Opendoor may provide you with a reimbursement of up to 1% of the purchase price. For a 3% charge, Opendoor also offers a 90-day repurchase guarantee, allowing you to return your purchase within three months if you’re unhappy.
Highlights:
- Allows for free features such as virtual house walkthroughs.
- You may try out a deal from Opendoor risk-free, unlike many other businesses, which charge cancellation costs.
- Opendoor has a 4.3 out of 5-star rating based on 2718 reviews based on Better Business Bureau and Reviews.io.
9.7 Offerpad
Offerpad is an iBuyer that began operations in 2015 and presently buys and sells properties in 11 states, predominantly in the southern part of the country. Offerpad bought 2,025 properties and sold 1,259 homes in the second quarter of 2021, a new high for the firm. You can buy a home directly from Offerpad, with one of its local agents acting as your buyer’s agent.
Highlights:
- Offerpad buyers receive first dibs on its listings, which is a good opportunity in a hot real estate market
- If you finance your purchase through Offerpad Home Loans, you can get $1,000 as closing costs in some locations.
- If you require a flexible closing date to coincide with the sale of your previous property, buying from Offerpad is a good option.
- Offerpad has a rating of 3.7 out of 5 based on 292 reviews on top websites such as Google and Facebook.
9.8 HomeLight
HomeLight is a tech-driven real estate site that uses its technology and data to link consumers with real estate brokers.
HomeLight, like other agent-matching services, is free, and you’re under no obligation to use it after you’ve joined. Buyers can also get a 0.5 per cent rebate on closing.
The process of matching agents is primarily automated. Matches happen quickly, but the company’s reliance on technology can sometimes result in subpar matches.
Buying a home with HomeLight is simple and straightforward. You must include information such as the area you want to live in, how far along you are in the home-buying procedure (possible alternatives range from ‘researching’ to ‘ready to make an offer’), the type of estate you want, whether or not you have pre-approval from a lender, your budget, contact information, and so on.
Highlights:
- HomeLight immediately gives you three agent matches and offers a further list if required.
- Compared to its competitors, HomeLight appears to have a stronger service distribution and reach in smaller cities and rural regions.
- The dashboard on HomeLight is simple to use and helpful in comparing choices. It includes a list of your matches and basic information on each agent to assist you in deciding which is the best match.
- Customers usually liked the service, with an average rating of 4.7 out of 5 stars on HomeLight’s website.
9.9 Home Atlanta
The Home Atlanta Realtor service is owned and run by a self-employed realtor agent, Tim Maitski. Home Atlanta is a local agency with a minimal office fee for its agents. Tim conducts preliminary discussions with all of his purchasers to ensure they are sincere and qualified to purchase the homes they desire. This allows for face-to-face connection and commercial transparency.
With Home Atlanta, you can claim a rebate of up to half the agent’s commission. On a $500,000 property purchase, you can get $7,500 as a rebate. Their services are more competitive as they’re locally well-versed in the real estate market of Georgia.
Highlights:
- Home Atlanta offers a 50% rebate on the agent’s commission
- The website’s Smart Buyer Handbook contains everything you need to know about purchasing a house. This assists the buyer with frequent questions and concerns.
- Tim has a rating of 5 out of 5 stars based on 52 reviews on Zillow.
9.10 Path and Post
Becky Babcock and Brad Nix own and run the Path and Post realtor website and service in Georgia. They have connections with successful realtor agents throughout the industry and are well-versed in the local market. The firm claims its locally linked agents can react rapidly to market movements. Having been in the business for 27 years, they managed to close 1067 deals of late. They were part of transactions worth $148 million last year. Path & Post is the top-rated real estate team in the Northwest Metro Atlanta area, serving Cherokee, Cobb, North Fulton, Pickens, Forsyth, Gilmer, and surrounding areas.
The firm has a 5/5 rating based on 704 customer reviews on Zillow.
9.11 Realtor.com
Realtor.com is the home search and listing website of the National Association of Realtors (NAR). Realtor.com is a service provided by the National Association of Realtors (NAR) to its Realtor customers for listing homes. It allows lenders, service providers, and realtors to pay for advertising and acquire leads on sellers and buyers. Realtor.com offers a 0.3% rebate to home buyers.
Go to Realtor.com and enter your city plus a few criteria to get all of the publicly posted for-sale properties in just a few clicks. It will provide you with a good understanding of average asking prices, what you can anticipate for your money, area details, and stats.
USPs:
- Realtor.com listings are the nearest to the reference standard, the MLS, updated routinely by realtors since they are partnered with the National Association of Realtors and linked to over 580 regional Multiple Listing Services.
- Has the most authentic and updated data on the internet regarding real estate.
Here’s a quick look at the list of websites/firms and their offer and USPs.
| Website/Firm name | Rebate Offered | USP |
| Clever Real Estate | 0.5% | Big savings at most price points. Top brand agents to choose from. |
| Redfin | 0.22% | User-friendly website |
| SimpleShowing | 1.5% | Good rebates |
| Trelora | 1.5% | Largest Savings on homes under $350,000. |
| UpNest | $150 + 0.3 to 0.75% | User-friendly website |
| OpenDoor | 1% | Innovative features such as virtual house walkthroughs. |
| OfferPad | $1000 closing credits | Offerpad buyers receive first dibs on its listings, which is a good opportunity in a competitive real estate market. |
| Homelight | 0.5% | HomeLight appears to have a stronger service distribution and reach in smaller cities and rural regions. |
| Realtor.com | 0.3% | NAR website which is quite up to date. |
| Path & Post | NA | Local agents who are well-versed in the market. |
| Home Atlanta | NAR website, which is quite up to date. | Local agents who are well-versed with the market. |
10. Is it necessary to disclose that you are receiving a rebate?
It is, without a doubt, required. Rebate affects the cost basis of a home. The lender uses the cost basis to check your loan eligibility, so informing the lender is mandatory.
10.1 How does rebate affect the cost basis?
What exactly is cost basis? The total amount you spend to purchase the home is your cost basis. It covers the purchase price, closing costs, and any other capital investments you make in the property, minus any credits like rebates. So a rebate will reduce your home’s cost basis. The cost basis is used by lenders to establish your Loan-to-Value (LTV) ratio, which decides your loan eligibility.
10.2 What is the LTV ratio?
LTV ratio is calculated by dividing your mortgage loan by the value of your house or cost basis. For instance, if your property cost basis is $300,000 and you are looking at a $270,000 mortgage, your LTV ratio is:
Mortgage loan ➗ Cost Basis = $270,000 ➗$300,000 = 0.90
This means that the loan covers 90% of the entire cost.
In other words, your down payment will affect the LTV ratio. If you make a down payment of 20%, you’ll be borrowing 80% of the home’s worth. As a result, your LTV ratio will be 0.80. LTV is one of the most important factors a lender considers when deciding whether or not to approve your property purchase for refinancing.
10.3 How will rebate affect the LTV ratio?
| Buyer Rebate | Loan Amount | Cost Basis Amount | LTV Percentage |
| $0 | $240,000 | $300,000 | 80% (ideal LTV) |
| $6000 | $240,000 | $294,000 | 81.6% (high LTV) |
11. How to ensure you get a buyer’s rebate?
If you want to ensure that you receive a buyer’s rebate, there are several things to keep in mind. Let’s look at a few of these.
11.1 Do not directly contact the listing agent
If you contact a listing agent directly, that listing agent will have identified you as a potential buyer. In this case, it is possible that the listing agent becomes the buyer’s agent and pockets both commissions without giving you a rebate. Hiring a buyer agent will not only be wiser, but you can also take advantage of a buyer rebate in the bargain.
11.2 Discuss and finalize the rebate amount before seeing homes through the agent
Discussing and finalizing the homebuyer rebate amount with your agent is the best way to negotiate and understand the amount of rebate you’ll receive after buying your house.
It’s best to do this before you sign the agreement, as it will be difficult to renegotiate the rebate once you sign on the dotted line. Of course, if the price becomes a deal-breaker, you can ask your agent to rethink the rebate if it will help the deal go through. Even though this is risky, and your agent may back out of the deal, you have nothing to lose since, otherwise, the deal will fall through.
11.3 Do your research
Before deciding with whom you wish to work, do your homework and assess your options. If you begin viewing houses with an agency or sign a buyer-broker agreement, you are obligated to stay with that realtor agent. Also, assess the real estate market in your region. For example, some real estate brokers may provide a homebuyer rebate or closing cost credits, while others may not.
11.4 Check the rebate as well as the services offered
If you are keen on getting a buyer rebate, you must calculate your expected rebate and understand what services are offered. You want to ensure you’re receiving the help you need while obtaining the best rebate.
11.5 Read the Terms and Conditions carefully
Examine the terms and conditions of your agreement, as some agents have conditions you need to fulfil before you receive a rebate. For example, the agent might need to earn a minimum commission before you become eligible for a rebate.
11.6 Cashback or Closing Credits
If you prefer a rebate as cashback, you need to ensure that the rebate is not in the form of closing credits. Be clear about this from the beginning. Also, if you are okay with closing credits, put it in writing and clarify how much this will be and how they can be used.
11.7 Does your home qualify for a rebate?
Most buyer rebates are often applicable to all types of properties, notably condos, single-family homes, multi-family homes, and even townhomes. Nevertheless, some brokerages may refuse to provide rebates for specific kinds of homes. Before buying your house, research to see if the sort of home you desire is eligible for a rebate. Consult your agent and go through the agreement carefully.
12. Can the agent reduce the services offered while offering you a buyer rebate?
They might. It is not uncommon for some agents to provide higher rebates on paper and cut down on their service in the bargain. It is always good to do some research on the agent or firm you are planning to buy your house with beforehand.
To ensure you are not shortchanged, you need to understand the services a full-service agent provides. Agents typically provide the following services:
- Assisting you in selecting your priorities.
- Providing reliable and legal sources of information on neighborhoods, schools, and communities.
- Advising on funding options and other service providers, such as inspectors and exterminators.
- Contract contingencies are suggested to protect you rather than the vendor.
- Assisting with pricing, helping you understand the terms and conditions, and being part of discussions with the seller.
- Maintaining the confidentiality of all information that might jeopardize your negotiation position.
- Monitoring the purchasing process and aiding with any difficulties until the transaction is complete.
- Choosing and scheduling property showings.
- Viewing and visiting properties.
- Explaining the forms and agreements.
13. how to negotiate a buyer rebate with your agent
The amount of rebate you get will ultimately depend on your negotiating abilities. Here are some pointers to get you started:
- Be willing to walk away from a contract if you don’t like it. Numerous realtor agents are willing to help you out there. It is always possible to walk out of a contract if the agent/agency is not offering you requisite rebates or the services are compromised.
- You must not seem desperate. It’s critical not to come across as someone limited to one agent and rebate program. Explore the market and provide examples from other firms and agencies when negotiating with your agent. Keep in mind, though, that this is a risky proposition. You could lose the chance to own your dream home if the agent delays the deal and is adamant.
- Shop and explore the market on your own. Look for agents offering rebates on the internet and assess them independently based on your needs.
- Reach out to family, colleagues, and neighbors. What is their opinion of the situation? Have they ever been in a scenario like this? Have they ever gotten together to discuss things like closing costs?
- Be specific and ask what’s on your mind. Converse freely and engage using “I statements” vs. “You statements.” Be assertive rather than aggressive. Consider your assumptions and think logically about what you’ve been taught or told.
- Pose challenging questions. Then, rather than trying to get your idea over, listen to comprehend the other person. Use the 70/30 rule after asking open-ended questions – List 70 per cent of the time, and don’t ask questions that may result in a yes/no answer.
- It’s never a terrible idea to take advantage of a free service. There are companies out there that will handle your real estate transactions for you, such as Transactly. They aim to determine which agents provide realtor rebates and make them compete for your business.
- Use a service that allows agents to compete for your business. If you use a service like UpNest and Clever, agents willing to offer a rebate will compete for your business. Pre-selected expert local agents from your preferred cities, preferred pricing range, and the ability to compare offers from many top-notch agents are all available through these services.
- Pre-approval from a respected lender: If you have pre-approval from a respectable lender, both the seller and buyer agents will know you are a serious customer who wants to close the transaction quickly. So you may ask for a higher rebate
Summing up
Before engaging with any of the agents, double-check that their refund or rebate offer is still active. If the lender rejects the rebate, ask your agent to request the seller to lower the price by the same amount.
Remember to read the fine print before signing up with an agent because some agents may provide closing credits rather than cash-back rebates. Remember, doing as much research as possible is critical to gain the maximum advantage. After all, this will be one of the most important transactions in your life. Happy house hunting in Georgia!