Are you well informed about a buyer agent commission rebate? All the parties involved in a real estate transaction from the buyer, seller to the agents of both sides have to be careful with the buyer agent commission rebate to protect themselves from messing up because they will all be affected. Read more facts about home buyer rebate commission.
There are many terms that are used to refer to a buyer agent commission such as a home buyer rebate, buyer closing credit, realtor rebate, buyer rebate, home buyer cash back, a commission kickback and more. The buyer and his or her agent agree on how they will share the commission of the agent after the transaction.
The seller pays the buyer’s agent a fee indirectly. The seller pays the listing agent a commission and the listing agent, in turn, pays the buyer’s agent a percentage from that commission. The listing agent can keep the whole amount if the buyer has no agent, which rarely happens, and act as both a listing and buyer’s agent.
Buyer rebates are legal and illegal in the US depending on the states. You should be careful and do your research before you embark on using this technique as a realtor or real estate company in any state of the US to stay away from trouble.
The challenges that buyer rebates expose traditional realtors have made them adamant to accept the change. The realtor will have to remain as either a listing or buyer’s agent but the latter is the most disadvantaged. Some listing agents are not willing to split the commission they get from the seller with the buyer’s agent.
Buyer commission rebates are rarely found because of the existence of the real estate brokerage. There should be cooperation between the agents of the buyer and seller for the deal to be successful hence dual agency is created. Most sellers list their homes for them to get buyers quickly and most buyers have agents to represents them. There is a rift between traditional and rebate realtors because the former are not willing to work with the latter.
Traditions agents can help the buyer’s realtor to get a commission rebate before the deal is closed by negotiating with listing agent for a reduction on the contract price after the offer has been accepted. If your lawyer can agree with the attorney of the seller, the contract price can be reduced by the rebate amount and the same will be done on the buyer agent’s commission. The lawyer can also request, through the seller’s agent that the rebate to be applied to you as credit if you already signed the contract.