Did your Agent give you a BUYER REBATE to lower your CLOSING COST?!
Did your Real Estate Agent give you a BUYER REBATE to help lower your CLOSING COST?! Allow me to ask an even better question: Did you know that you can LEGALLY receive a portion of your Real Estate Agents commission to help lower your closing cost? With the exception of ten(10) states* in the United States, HOME BUYERS can receive a portion of their Agents commission in the form of a BUYER REBATE.
BUYER REBATES are legal in New York! But, why would a real estate company do this? What’s the catch? Why would somebody (Real Estate Agent) work so hard and then give away a portion of their earnings? Is it true, you get what you pay for? Great questions right? And, a great question deserves a great answer!
Why would a real estate company do this? As people and technology evolve, that causes industries to evolve as well. However, the real estate industry hasn’t systematically changed since conception in the State of California in the early 1900’s. Then, in 1994/1995 the Internet was commercialized for public use. This invention revolutionized just about every industry on this planet by making it more economical, efficient, and streamlined. The Internet created a competitive atmosphere that in most cases drove down price, but increased the efficiency of delivering products and services to consumers. Every industry except the real estate industry!
Now, fast speed forward to 2017. A BUYER can go online and shop for houses, research schools, look at the crime rate, get property tax info, do a Google Map search, see nearby shopping centers and grocery stores, mortgage calculators to anticipate their payment, schedule tours, and in some states get actual SOLD DATA. In other words, BUYERS need a Realtor, but not like they use too!
So, why would a real estate company give away a BUYER REBATE as their business model? I think the better question is, WHY NOT?! Unlike ever before, BUYERS actually are now doing a part of the Real Estate Agents job. Before the internet, they had to rely 100% on an Agent to know all the houses that were FOR SALE on the MLS. Now, BUYERS do the searching and statistically according to NAR (National Association of Realtors) they primarily need an Agent to open the door to houses and help negotiate their transaction once an offer has been submitted. With that being said, if our jobs have been streamlined and the consumer has access to now participate in the search making it easier on everybody, why not give them a portion of the commission to help lower their closing cost and make the purchase of their home more affordable?
What’s the catch? Honestly, there’s actually one (1) catch! You must use a Powerhouse Agent to get your BUYER REBATE. Most Agents don’t offer a BUYER REBATE to help their Buyers with Closing Cost. Visit our website to learn more about the Buyer Rebate programs for qualified buyers in your area.
Is it true, you get what you pay for? The answer to this question depends on who you ask, their objective, and their motive. However, there’s a man that most people in the United States know and respect who once said it best!
PRICE IS WHAT YOU PAY. VALUE IS WHAT YOU GET….by WARREN BUFFETT
Notice, Mr. Buffett’s quote embodies separate sentences, two independent thoughts. In spite of popular belief, PRICE and VALUE are two different things. If it wasn’t, there wouldn’t be any Airbnb, Amazon, or Uber who thrives on giving the best PRICE and the best VALUE! The real estate industry doesn’t think this way. However, no matter what PRICE you pay, we only question VALUE when something goes wrong in the natural order of things. So, what’s the cliche when you pay a high PRICE and the VALUE is sub-par?
