Many realtors offer a Real Estate Cash Rebate to the people who buy a home through that particular realtor. People often question the legality of this. Most realtors would never consider doing something illegal as this could cost the opportunity to earn income. That said that rebates are illegal in many states in America.
The Justice department has set up a website relating to real estate and its competitors. This provides all the practices and laws concerning the different American states. Eleven states in America have declared it an illegal practice to pay cash rebates to any clients. Some feel that this practice is obstructive to a competitive real estate environment.
In the states where this practice is considered legal, one may receive up to 50 percent of the commission received by the realtor. This cash can be applied in any means, from closing costs to buying new furniture, or any items that the new homeowners wish for. Realtors point of view is that the buyer may have searched the Internet for options, but made use of their service and is therefore deserving of a share of their commission.
Some also reward people for referrals and pay then up to thirty percent of the commission. Companies who offer this service are most likely to be found on the Internet and then one can make contact with them directly. Some realty brokers pay out hundreds of thousands of dollars in commissions and it helps a new homebuyer as well as the realtors as they sell more homes.
Most companies, whether legally obliged or not, do not offer rebates to clients. The reason is mostly that clients are unaware of the rebate systems. They are not aware of how it works the pricing or the legal matters that are linked to this process in the state that they live in.
Any traditional realtor will have a very offensive attitude towards rebate systems. Larger realty agencies are able to avoid this system as they have a good branding reputation and ample business opportunities to not have to make use of this practice.
Although the law does not require that realtors disclose the rebate option, it is only fair that consumers are aware of this. They should know of its existence and the basics of how the program works. This gives them the ability to make an informed decision about which realtor to use when buying a home.
Many are under the impression that rebate is cheap. This is because rebates do not offer high dollar value. When purchasing a house a good rebate could be worth thousands of dollars. This could be as much as two percent of the purchase price. The rebates system works tier bases. Depending on the price of the house the percentage will be calculated. The Real Estate Cash Rebate is surely worth considering.
Get the low down on exactly how real estate cash rebate works now in our comprehensive Connecticut Real Estate and Cash Back Offers guide.
Orignal From: How Real Estate Cash Rebate Works For The Realtor
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