What is a REBATE?
A rebate is a pass through of funds payable from real estate commissions paid by the seller. In other words, a portion of the commission paid to me is REBATED to you, my buyer client.
'How is the REBATE calculated?
In a typical sale, real estate commission is calculated as a percentage of the PURCHASE PRICE.
Purchase Price $300,000 x 3% Real Estate Commission = $9,000 Total Commission
In this scenario, the REBATE would be $3,000 (or 1% of the Purchase Price)
How can I use the REBATE?
Within certain limitations that may be applied by your lender:
*the REBATE could be used as a credit against your closing costs thereby reducing the amount of money that you need to bring to the closing table
*the REBATE could be used as a credit against your down payment, thereby reducing the amount of money that you need to bring to closing table
*the REBATE could be used to purchase upgrades from the builder. For instance, many homes do not include window blinds, the REBATE could be used to purchase them. Perhaps, you would like to add a screened porch on your new home, the REBATE could be applied to the additional cost. Other options could include upgraded lighting fixtures, extended hardwood flooring, upgraded appliance packages...The options are limited only by your imagination and the selections available through the builder.
Do I have to sign an agreement to receive a REBATE?
Yes, Georgia Real Estate License Law requires a BUYER BROKERAGE AGREEMENT in order for you to receive representation as a buyer. The buyer brokerage agreement protects all parties and defines the nature of the relationship between you, the buyer, and me, the real estate broker. If you are not happy with my services, you may cancel the buyer brokerage agreement without penalty. *cancellation must occur prior to entering into an agreement to purchase a home.
Is the REBATE available on resale homes?
No. I only offer the rebate on the purchase of new construction homes on which I represent you as a buyer.
Do you provide a reduced level of service because you are giving me a REBATE?
NO. I will provide you with the same high level of buyer representation. I will assist you in locating appropriate homes, attend showings, assist you in negotiating the terms of the purchase with the builder or their representatives, I will provide direction and recommendations for mortgage loans, home inspections, appraisals, etc. I will attend all of your inspections, walk throughs, punch lists and closing.
Why do you offer a REBATE without reduced service?
Because, in general, assisting in the purchase of new construction is simpler and less time consuming for me than attending to a resale purchase. Also, because I have restricted the areas eligible to receive a rebate to purchases in Cobb & Paulding Counties, my expenses are limited.
Are real estate REBATES legal?
Yes, Georgia Law and real estate license law allows for me to rebate a part of my commission to my clients so long as the REBATE IS DISCLOSED UP FRONT TO ALL PARTIES IN THE TRANSACTION and appears on the closing settlement statement.
Can I receive a check at closing in the amount of the REBATE?
No, for disclosure and tax purposes, the full amount of the REBATE must be applied in full on the closing statement.