All the Information You Need To Know About Home Buyer Rebate
A home buyer rebate is a portion of the commission that a real estate agent gives back to their client after a home is purchased. Some companies refund a set amount no matter what price was paid for the home, while other companies offer varying percentages depending on what was paid.
Where does the money for the homebuyer refund come from?
Understanding where the money for a buyer refund comes from can be very confusing. Let’s break down the basics of real estate commission first. A typical commission on a home sale is 6% of the total sales price, which is then split between the buyer’s agent and seller’s agent. So if you are buying a $300,000 home, one agent would typically make a 3% commission or $9,000 on this home. The rebate is taken out of the commission that the buyer’s agent receives.
What’s the reason a real estate agent might want to refund a portion of their commission?
Many real estate agents and brokers offer reduced commissions as an incentive to new customers. It’s usually because of the cost of marketing and advertising, which is often higher than other business expenses like office supplies or utilities. An agent who offers a discounted commission is generally trying to acquire more customers by offering an advantage over competitors, so they can make up for their lower commission with increased sales volume.
Collaborate With Magnolia Realty for The Best Home Buyer Rebate:
If you are looking for the best home buyer rebate program in Maryland & Washington DC, then look no further than Magnolia Realty! We’ll represent you as a buyer’s agent and get you a rebate of up to 1.5 percent of the sales price at closing.
We will rebate your closing costs at settlement, reducing the cost of your home purchase by 1% (when seller offers a 2.5% commission)— or by 1.5% (when seller offers a 3% commission). Call us now if you want to enjoy the best Buyers Rebate in Real Estate! Reach us at 240-793-2861!