There’s a lot involved in the process of buying or selling a home, and a lot of professionals in the industry are counting on your ignorance to make a profit. That’s why it’s so important for buyers to know the secrets of the trade to make the most of their buying power.
There are several ways that a buyer can improve the outcome of their home-buying process. Some of those are more liquid than others. Homebuyer rebates equal cashback on your purchase.
Perhaps you’ve heard about the home buyer’s rebate. It’s the newest and fastest way to save on the purchase of your home. This rebate can be a little difficult to understand, and that may give rise to anxiety or inhibitions that you’ll regret later.
This article intends to clear up some information about the home buyer’s rebate. We’ll address what it is and how it works, so read on to get a good grasp of what’s going on so that you can’t be taken advantage of when buying a home.
Real Estate Brokers Are Hiding A Secret
Real estate brokers offer their services for ‘free’ to the buyer. But that’s just on the surface. Indeed, you’ll never pay out of pocket for a real estate broker to show you a home or to assist you with the buying process. However, it isn’t free, and you are the one paying. And it isn’t a small amount either; you just don’t see it as it’s included in the price of the home.
In fact, in the state of New York, that value is typically around 6% of the home’s value. While technically, the seller pays that fee, it comes out of the purchase price(the buyer’s money). The brokerage fee that the seller pays is nested in the purchase price of the home. In other words, the buyer does pay the real estate broker’s commission whether they realize it or not.
Out of sight, out of mind as they say. Well, things are changing, and the real estate industry has been evolving. Now that the dissemination of information is much more widely spread, newfound awareness has provided an opportunity for a new kind of broker that is willing to help out the little guy.
Small Brokerage Companies Are Sharing It With The Seller
There are a lot of new start-up companies that have driven into the real estate market. And they’re making a splash. That’s because they aren’t afraid to do business in new and interesting ways, most of which benefit the consumer. This is how it works.
Traditionally, an old-fashioned broker would sell the home in the normal way. Upon closing, the broker is set to take 6% of the home’s value. They get it from the seller, but the seller pays it with the money they receive from the sale of their home. So while it changes hand one time behind your back, it’s still the buyer’s money, and it’s reflected in the purchase price of the home.
However, small brokerage companies are doing it differently. Instead of the brokerage companies passing their commission around to multiple associates involved in the sale, small companies are sharing it back with the buyer. That’s right, the brokerage company will still take the 6%(the actual number varies), but instead of putting it in their pocket, they pass two-thirds of it back to you. They do this for a few reasons. For one, they are typically smaller companies with less overhead and involvement in the traditional market. Secondly, sharing the commission with the customer is a great way to improve customer relations and to shore up business.
The money kicked back from the sales commission is the home buyer’s rebate. You can calculate your buyer’s rebate and get additional information by checking out the website. Using this new style of real estate broker is a great way to take advantage of the evolving market. The new way is buyer-focused and does a lot for the consumer, which traditionally gets the short end of the stick in the real estate market.
Rebates Can Make Your New Home Even Sweeter
Most new home buyers are strapped for cash after their purchase, and it’s easy to understand why. Meanwhile, fat cats are passing around your 6% with a big smile on their face. And let’s be honest, they don’t need it, and you do.
That extra cash is the difference between sleeping in an empty and unfurnished home and relaxing like royalty in your new private domicile. For the purchase price of just $200,000, a home buyer rebate could be as much as $8,000. Just imagine what you could do in your new house with all that extra money. Or, you could just save it and make your payments for a while. Whatever you choose to do with it, having as much surplus cash as possible is an important thing in the challenging era that we must deal with in this day and age.