Category Archives: Becoming a Buyer

Hustling Rebates In Real Estate

A real estate commission rebate is not considered taxable income!

What does that mean?  Well, it means you would get tax free money back soon after closing on your next home or property!!!!  Sounds good but not many Realtors are offering it.  Yet.  However, once you know about real estate rebates, you would be crazy not to seek out the largest one you could find! It really is that simple.

Let’s face it you are going to do the majority of the work finding and purchasing your new home and that is a fact!  So why not treat this like a business deal which it is and shop for the best rebate you can get.  Hey, everyone knows a real estate agent or ten, but this is BUSINESS, don’t make the costly mistake and make this personal.  Ask them all what kind of rebate you can expect from them when you use their services.  Remember it is your money that you are bringing to the table so get some back! in Rochester and Syracuse, NY have been offering hefty rebates over the last couple years but so few people actually get it!  This can add up to literally thousands of dollars, that you were bringing to the closing table either way!!!!

Check your state to see if commission rebates are legal.  New York State allows real estate commission rebates!

Buyers not getting cash back are paying too much!

“The listing agent told me that I could get a better price if I wrote the offer through him and I really don’t care who writes the offer, I just want my price! He said if I got you involved it would drive the price up because there would be more commissions involved.”

Those were the words of Cory this week, just like so many people who fall into this trap he didn’t understand that commissions are agreed to before the house goes on the market and so are the splits between brokers, which are usually 50/50. So if the total commission was 6%, the commission would be divided up with 3% going to the listing agent and 3% going to the buyers agent. If the listing agent writes up the offer on the house, well he keeps the entire 6% of the commission.  Doesn’t sound like much but it sure adds up.

So now who is the listing agent working for?  That is part of the problem, Cory now has no representation and there is a lot of strategy involved between the time of the offer and the closing table. Then the financial kicker, Cory is not going to get any cash back after closing. Rebates became legal in NY several years ago and if you are not getting money back, well then you are not playing it financially smart at all.

And to think a listing agent can get you  “a better price” is absurd.  Any listing agent that tells you that is blatantly breaking the law (Laws of Agency) , and they know it!  And if they know they are breaking the law do you really think they are going to do anything for you?  No way! It is all about them, and it is called SELF SERVING!  But the sad thing….this happens everyday, and that is the truth. in Rochester, NY gives buyers up to 50% of their commission back! Now that is something you can take to the bank!