Okay so you are ready to buy a home. You have searched online and read about homebuyers rebates. Just how do they work? Where are the best rebates found? Well of course my answer may contain bias but I will try to keep that as a minimum.
In California, there are two sides to any real estate transactions that are put on local MLS boards. The listing agent receives a commission from the seller and represents the seller. The seller also offers a commission to the buyers agent in order to incentivize buyers agents to bring clients to the home. Now many of these agencies will give buyers a rebate to buyers that is a portion or percentage of the commission they receive from the seller. G & R Realty is no different. However there are very strict laws set forth by the Department of Real Estate with regards to rebates. Furthermore there can be tax implications regarding the rebate as well.
One way for rebates to be awarded is that the agent representing the buyer may simply send the buyer the rebate after the close of escrow. Again, in a situation such as this, there may indeed be a tax consequence as the brokerage may need to file a 1099 for that rebate. It is never good to mess with the IRS.
Now the fundamental fact of the matter is that ANYBODY may ask an agent for a rebate. Don’t be shy. I always marvel at how so many people simply do not assert themselves. The fact of the matter is that many agents usually represent friends or family. These friends or family members either are intimidated or don’t want to hurt their friends feelings. This again is so odd to me. Hey if you are buying a 600k home that agent may be getting 18k or more as a commission! Don’t you think you should get some of that? The most successful buyers are the ones who are not timid and who understand that the agent works for them!
NEVER BE AFRAID TO ASK FOR A REBATE.