Buyer Commission Rebates: A Primer for Investors and Agents

Buyer commission rebates are a really helpful benefit that can make a home sale much easier to close. If you are an agent or an investor looking to buy and sell homes, you need to know more about the rebate process. The buyer commission rebate is a powerful benefit for those who can offer this perk to home buyers or can access it as someone shopping for property.

Agents and investors are both always looking to save money on home sales and purchases. The agent needs to be able to sell more homes, and the investor needs to keep the costs down on their purchases. These interests can meet in the middle, and both benefit from the buyer commission rebate.

What is a Buyer Commission Rebate?

The buyer commission rebate is a rebate that is offered to the buyer of a home or property during the sales process. This rebate is taken from the buyer’s agent’s commission during the closing process. This sum of money can then be applied by the buyer to closing costs, or it can be saved for other costs related to the home purchase process.

Unlike federal housing programs or other kinds of buyer cost reductions, the buyer commission rebate can be applied in a variety of ways during or after the sale has been completed. This makes it a powerful and effective tool to help both investors and agents create amicable sales deals.

Who Qualifies for Buyer Commission Rebates?

So long as you live in one of the US states where buyer commission rebates are legal, you are allowed to offer this rebate to home buyers of any kind. Investors are eligible, as are families or individuals buying homes. There are ten US states that do not allow the buyer commission rebate to be offered during the home buying or selling process. So long as you live in the States where this kind of rebate can be used to help close a home purchase, you can access its benefits.

How Does the Buyer Agent Commission Rebate Work?

We can illustrate the use of the buyer agent commission by using a simple example.

Let’s say that the home that is being purchased costs $500,000. The buyer agent commission might be 3% in this situation.

• Total buyer side commission = $7,500
• 1% provided to the buyer as a rebate at the closing of the sale = $2,500
• 2% kept by the buyer’s agent = $5,000

The only downside to this kind of rebate is that the buyer’s agent will receive a smaller commission. However, to most people who are buying or selling homes for a living, this is a worthwhile exchange for further sales and increased interest in working with them as an agent.

How to Negotiate Buyer Rebates

If you are an investor, you might want to know if you can negotiate this kind of rebate option within the sales process. In some cases, you will be able to negotiate for this part of the sale. As an investor, you are probably eager to try and get the best deal that is possible for your purchase, so negotiating for various parts of the process might make sense.

Negotiations for the rebate amount can vary in their flexibility. You might find that this part of the sale is set in stone with some agents, while others are more open to trying to find a happy medium that everyone can agree on.

As the agent, you can easily explain the benefits of the rebate that you have chosen to offer to clients. This is essentially free money that you are giving back to them from the sale. They can use this money for closing costs and other kinds of expenses associated with their home purchase. This kind of rebate offers a win-win experience for those who are in the market for property investment as well as agents.

Benefits of the Buyer Commission Rebate

The buyer commission rebate offers so many benefits to both agents and investors. This kind of rebate helps to make the home-buying process more attractive to investors who want to save money, and it also makes negotiations much easier between parties.

As someone who sells homes or property for a living, the cost of real estate can cause people to be unwilling to buy in large numbers. You will be much more likely to sell lots of homes or properties if you are willing to offer this kind of cashback offer to those who are looking to buy.

For investors, it is much easier to show other people on your investment team the value of a certain location if you are able to negotiate for some money back related to the sale. While the location and overall potential of the property do matter, the bottom line often guides these buying decisions from start to finish. Being able to get some money back can offer you the right motivation to help secure the properties that offer the most value for you and your investment partners.

Buyer Commission Rebates Are a Great Solution for Investors and Agents

There are so many reasons that a buyer commission rebate can be a big benefit to you as an investor as well as to those who are agents selling homes and property. The rebate makes it easy for your listed properties to stand out from the crowd, and it also makes it easier to find investors to work with if this is your target audience.

Buyer commission rebates are becoming increasingly popular in many states around the US for good reason. The more that you know about this valuable option that can streamline and improve your buying and investing processes, the more likely it will be that you can find deals that include this option. Being able to offer cash back to investors and being able to take that money and apply it to other costs can make investment and agent partnerships go together swimmingly.