Buyer Representation FAQs
- Can I really get a rebate for buying homes?
- How much of your commission will you share with me?
- For what can I use the money you share with me?
- How much of a rebate can I get for buying a builder’s new construction home?
- Will using a REALTOR® agent to buy new construction hurt my negotiating position?
- Can you show me other REALTOR® brokers’ listings?
If you have other questions, or would like additional clarification, feel free to e-mail us. We will be happy to answer any questions you have.
Can I really get a rebate for buying homes?
Yes, you can!
How does it work?
Home sellers, builders, and other brokers generally offer commissions to licensed real estate agents for bringing them buyers.
Unlike other brokerage firms, we SHARE these commissions with the buyers we represent.
How can we afford to do this?
First, rather than “driving neighborhoods” and finding out a buyer’s search criteria as we go, we have a systematic process for collecting this information over the web, over the phone and/or in person. This process significantly shortens the amount of time we spend looking for homes. When our time is reduced, we can afford to share our commission!
Is is legal? Yes, in most states!
Most states allows licensed agents and brokers to share/rebate their commissions with sellers and buyers of real property. This money may be used for any lawful use, including closing costs, prepaid taxes and insurance, or anything you want!
How much of your commission will you share with me?
Agents in the DISCOUNT-REALTOR® network can often share up to 1% of the sales price of the home with the buyers they represent! (Sometimes more!) The exact amount you will receive is determined by the following factors:
- The individual agent
- Local market conditions
- The total commission offered by the seller to the agent
- The purchase price of the home
- Laws in your state
- The total amount of time the agent spends with you
For what can I use the money you share with me?
You can use the money for practically anything you want! Really!
Window treatments, furniture, moving costs, closing costs, pre-paids, etc.
Some lenders (e.g. FHA) limit the use to closing costs and/or pre-paids, but it is cash just the same!
How much of a rebate can I get for buying new construction?
The commissions that builders offer are generally very competitive with existing home sales. We find that most builders offer a 3% commission to licensed agents.
Your share can be as much as 1% of the sales price! (Sometimes more!)
Will using a REALTOR® agent to buy new construction hurt my negotiating position?
Contrary to popular belief, builders won’t reduce the sales price of a home by cutting out an agent’s commission. REALTOR® agents’ commissions are built into the price of the home and are reserved exclusively for licensed agents.
Why? Builders want to offer consistent pricing to everyone – especially REALTOR® agents who bring them a lot of buyers!
Our commission sharing service is even better in that you get A REBATE at closing!
Think about it. You can use the rebate for anything you want – closing costs, moving costs, window treatments, furniture, etc! Isn’t that a lot more flexible – and fun? Some loan programs have some restrictions (e.g. the commission amount shared must be used for closing costs and/or pre-paids), but it is still treated like cash!
If you do not use a REALTOR® agent to represent you, you also will not benefit from their experiences with builders in your area.
Warning: If you visit, or register with, a builder without contacting us first, the builder may disallow a real estate commission and you will lose your opportunity to pocket up to 1% (ore more!) of the sales price! Don’t forfeit your chance! CALL US FIRST! Also, if we have referred you to a builder, please tell the builder we referred you and let us accompany you on your first visit. If you have already met with the builder, but have not signed a sales contract, we MAY still be able to help you, but it will be up to the builder to decide.
Can you show me other REALTOR® agents’ listings?
Yes! Virtually any home listed for sale by a fellow agent/broker REALTOR® can be shown by other REALTOR® agents/brokers (including DISCOUNT-REALTOR®) who are current members of the NATIONAL ASSOCIATION OF REALTORS®.
However, unlike other REALTOR® agents/brokers, DISCOUNT-REALTOR® shares with you a portion of their commission!