About Rebate

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Lanelgn

Lanelgn

Member
My friend told IF you ask rebate from your agent for purchasing a new house from builder. The Agent will less likely motivated to work with you.
Is this right?
How often Rebating happened?
thanks in advance.
 
If the agent is less motivated and did not provide anything other than 100 percent of their time just because they make less commission,  that is not the agent you want to work with.

When it comes to new home purchase, most of buyer reading TI are getting an rebate from the agent.  And if the buyer using USCTroganCPA or IrvineRealtor, 100 % of them are getting the rebate.
 
Their are agents on this site who will happily rebate with you (see Inc's post above). Plus, outside of providing you some advice or potentially negotiating some credits here or their, the work is very minimal for the agent on a new build (hence the willingness to do a credit). 

Value is you save a bit of money and might even get some incentives (depends on builder and market) plus a good agent can also give you some tips as you go through the upgrade process (which can be helpful if you are more green). 
 
Most agents will not provide a rebate to buyers for new home purchases because they think they are above that and/or don't want to give up any part of their commission.  As for me, I've always been doing rebates...on resales and new homes. 
 
Desperate agents give rebates.  If you already have more business than you can handle why give rebates?

 
why not? 50% of something is better than 0% of everything.  there is such little work for a realtor, it makes no sense not to do this...
 
Yeah, for buyers on new construction, why wouldn't you want a rebate.  Makes no sense not to get one. 
 
Test is correct.

Until I have more business than I can handle, I will continue to offer rebates.
Or until I win the Powerball... whichever comes first.
As I've never bought a Powerball ticket, the odds are decidedly in favor of the former.

-IR2
 
test said:
Desperate agents give rebates.  If you already have more business than you can handle why give rebates?
Click to expand...

Or maybe some agents think it's the right thing to do.  In my opinion, the whole real estate commission structure needs to be revamped anyhow to better align the interest of the agents with their clients. 
 
No matter the Agent's reason, on a go forward basis the market expects some form of rebate. Even brand name Realtors often have some sort of front loaded cost reductions (listing for 1.75 instead of 3%) or back end compensation like "Buyers Agent Closing Cost credits".

IMHO the right kind of Realtor to work with are those who discuss the subject to in open and plain language up front and avoiding any problems at closing. Trust me when I tell you this: I can't count the number of conversations I've had with sellers and buyers that start with "my realtor said they'd give me "x" if I did the deal with them, but it never came to me. Should I sue?"

My .02c

SGIP
 
Soylent Green Is People said:
No matter the Agent's reason, on a go forward basis the market expects some form of rebate. Even brand name Realtors often have some sort of front loaded cost reductions (listing for 1.75 instead of 3%) or back end compensation like "Buyers Agent Closing Cost credits".

IMHO the right kind of Realtor to work with are those who discuss the subject to in open and plain language up front and avoiding any problems at closing. Trust me when I tell you this: I can't count the number of conversations I've had with sellers and buyers that start with "my realtor said they'd give me "x" if I did the deal with them, but it never came to me. Should I sue?"

My .02c

SGIP
Click to expand...

In regards to not getting the commission rate, I say get in writing on the contract. When you select the agent selling your house. If your buying a new house and both agree on a split from the builder rebate, get that in writing also. (If that's what you are talking about)

 
test said:
OCHN rebate is confusing.

First he says you get 1.5% back.  Then he says you get anything over 1.5% back.  Which is it?
http://ochousingnews.com/blog/get-up-to-1-5-cash-back-at-irvine-eastwood-village-grand-opening/
Click to expand...

I think this clarifies things a bit more...

"We are offering buyers a refund of anything over 1.5% back on new construction from our fee that is paid to us by the builder."

So he keeps 1.5% and anything over 1.5% gets rebated back to the buyer based upon reading the above.  One little problem with that, most builders are only offering 1.50% to 1.75% broker co-ops (if you do the math using the flat broker co-ops).  Other question...is it based upon the base price or the final sales price with upgrades.  For example, Petaluma has a broker co-op of $14k and the homes will be about $800k on  average so that equates to an approx. 1.75% broker co-op which means he gets 1.50% ($12k) and the buyer gets .25% ($2k).  What happens when the broker co-op is under 1.50% (like it is with Strada)...does the buyer have to kick in more money to him so that he gets his 1.50%?  haha
 
USCTrojanCPA said:
test said:
OCHN rebate is confusing.

First he says you get 1.5% back.  Then he says you get anything over 1.5% back.  Which is it?
http://ochousingnews.com/blog/get-up-to-1-5-cash-back-at-irvine-eastwood-village-grand-opening/
Click to expand...

I think this clarifies things a bit more...

"We are offering buyers a refund of anything over 1.5% back on new construction from our fee that is paid to us by the builder."

So he keeps 1.5% and anything over 1.5% gets rebated back to the buyer based upon reading the above.  One little problem with that, most builders are only offering 1.50% to 1.75% broker co-ops (if you do the math using the flat broker co-ops).  Other question...is it based upon the base price or the final sales price with upgrades.  For example, Petaluma has a broker co-op of $14k and the homes will be about $800k on  average so that equates to an approx. 1.75% broker co-op which means he gets 1.50% ($12k) and the buyer gets .25% ($2k).  What happens when the broker co-op is under 1.50% (like it is with Strada)...does the buyer have to kick in more money to him so that he gets his 1.50%?  haha
Click to expand...
Someone should point that out in the comments, but I doubt it.

And, the paragraph you quoted is opposite of their opening statements:
If you buy a home with us as your agent, you get 1.5% back.
Same house, but 1.5% of the purchase price refunded back to you.
Click to expand...
Huh?
 
As many have said, no reason for an agent to not give a rebate on new homes as it requires very little work. It also provides good will for future business.  USCT kicked back a significant amount of the rebate on my new home  (he's responsible for paying taxes on the full amount) and while he may not have made "that much," his gesture led to another opportunity with me to list my old house where he made a killing -with very little work also since this is Irvine afterall :)

...Then he became the King of WBE and and lived happily ever after (after my listing closed, he was contacted by several sellers in the neighborhood and closed on all). #desperate #USCTforPresident2016
 
scubasteve said:
As many have said, no reason for an agent to not give a rebate on new homes as it requires very little work. It also provides good will for future business.  USCT kicked back a significant amount of the rebate on my new home  (he's responsible for paying taxes on the full amount) and while he may not have made "that much," his gesture led to another opportunity with me to list my old house where he made a killing -with very little work also since this is Irvine afterall :)

...Then he became the King of WBE and and lived happily ever after (after my listing closed, he was contacted by several sellers in the neighborhood and closed on all). #desperate #USCTforPresident2016
Click to expand...

I'm pretty sure he didn't have to pay taxes on the full amount.
 
WTTCHMN said:
scubasteve said:
As many have said, no reason for an agent to not give a rebate on new homes as it requires very little work. It also provides good will for future business.  USCT kicked back a significant amount of the rebate on my new home  (he's responsible for paying taxes on the full amount) and while he may not have made "that much," his gesture led to another opportunity with me to list my old house where he made a killing -with very little work also since this is Irvine afterall :)

...Then he became the King of WBE and and lived happily ever after (after my listing closed, he was contacted by several sellers in the neighborhood and closed on all). #desperate #USCTforPresident2016
Click to expand...

I'm pretty sure he didn't have to pay taxes on the full amount.
Click to expand...

Yeah, I reduce the broker co-op commission by the rebate I provide the buyer and the transaction fee that my broker deducts.
 
USCTrojanCPA said:
WTTCHMN said:
scubasteve said:
USCT kicked back a significant amount of the rebate on my new home  (he's responsible for paying taxes on the full amount) and while he may not have made "that much," his gesture led to another opportunity with me to list my old house where he made a killing -with very little work also since this is Irvine afterall :)
Click to expand...

I'm pretty sure he didn't have to pay taxes on the full amount.
Click to expand...

Yeah, I reduce the broker co-op commission by the rebate I provide the buyer and the transaction fee that my broker deducts.
Click to expand...

Guess the main take away is that the buyer gets a lot of money back and the buyer does not have to pay the taxes on the amount they receive.
 
USCTrojanCPA said:
WTTCHMN said:
scubasteve said:
As many have said, no reason for an agent to not give a rebate on new homes as it requires very little work. It also provides good will for future business.  USCT kicked back a significant amount of the rebate on my new home  (he's responsible for paying taxes on the full amount) and while he may not have made "that much," his gesture led to another opportunity with me to list my old house where he made a killing -with very little work also since this is Irvine afterall :)

...Then he became the King of WBE and and lived happily ever after (after my listing closed, he was contacted by several sellers in the neighborhood and closed on all). #desperate #USCTforPresident2016
Click to expand...

I'm pretty sure he didn't have to pay taxes on the full amount.
Click to expand...

Yeah, I reduce the broker co-op commission by the rebate I provide the buyer and the transaction fee that my broker deducts.
Click to expand...

So you make the buyer pay tax on their portion?
 
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