What is a buyer rebate?
A Buyer rebate is where your Buyers agent gives back to you or “rebates” part of their commission at closing when you buy a property using them as your Buyer’s agent.
Why would a buyer’s agent rebate part of their commission back to the buyer?
It’s an incentive for a buyer to do business with that Buyer’s agent. The result is more business for that Buyer’s agent and you, the buyer, earning cash back at closing. The perfect combination!
Are home buyer rebates legal?
Yes. They are legal in Colorado and 39 other states in the US.
How do I verify I’m going to get my rebate?
This is VERY IMPORTANT! Your very first contact must be with us as your Buyer’s agent. You CANNOT contact the listing agent on a home you are interested in! If you see a home and then contact the listing agent for information you immediately become that listing agent’s prospective buyer. That listing agent will have established you as their buyer prospect. So, it is critical that you contact us as your agent first and tell us the property you are interested in. We will then contact the listing agent as YOUR BUYER’S AGENT. Your rebate amount will be written on the offer to purchase once you find a home you wish to buy.
How does the process work?
You’re searching for a home and find some several that you’re interested in. Next, you contact us, as your buyer’s agent, and email the list of homes to us. We would then contact the listing agent and help schedule the showings. When you wish to make an offer, we will draw up the offer in electronic format and send it to you for your review and discussion if needed. You sign the offer, we send it to the listing agent and begin the negotiating process. After you and the seller come to terms we are there to assist you from start to finish just like a full-service Realtor.
More Important points to remember:
Recent lending laws require you to have your buyer rebate on the closing statement and it MUST be on the original offer to purchase. If the rebate language is not on the offer to purchase you may not get your rebate. Your lender needs to be aware of this rebate.
Procuring cause is the series of events that lead to the successful purchase of a home. In plain English it gets down to who deserves the commission from a sales transaction. If you as a buyer contact a listing agent first you could become their buyer prospect. Even if you end up buying through us or another agent, that original listing agent could argue you are their buyer because you established contact with them first on the home being purchase. This means we must be your first point of contact during your buying process.