How Do Home Buyer Rebates Work?

There are currently 40 states that allow real estate agents to give home buyer rebates to clients. If you live in one of these states, you might be able to save some money when you buy a house if you choose an agent that offers a rebate. If you have never heard of this, you might want to know the following things about home buyer rebates if you are shopping for a home.

What Is a Home Buyer Rebate?

When you purchase a home with an agent that offers a rebate, you will get money back after you close on the house. This is like a gift for you from the agent you work with, and agents offer these for several reasons. The main reason is to gain new clients.

There are a lot of real estate agents to choose from. Because of this, some agents decide to stand out from others by offering rebates. By doing this, people who are looking for homes to buy might be more inclined to call them. This helps the agents make more money, even though they end up sharing a portion of their commissions with home buyers.

What Is a Typical Rebate?

Real estate agents that work in states that allow rebates are free to give any type of rebate they want to. Some agents will offer money as a rebate, and they base it as a percentage. For example, they might give a 1% home rebate. The 1% is multiplied by the cost of the purchase price of the house. If a person buys a house for $200,000, the rebate would be $2,000. This would be paid to the home buyer after he or she closes on the house.

Cash is not the only form of rebate agents offer, though. Some agents offer gift certificates as rebates, or they might offer to pay for some of the closing costs or inspections on the home. There are also agents that may offer other types of rebates. If you look around, you will get an idea of the options available by real estate agents in your city.

If you are looking for a house to buy and want to take advantage of a home buyer rebate, you will need to look for an agent that offers rebates. You can compare the types of rebates agents offer before you choose an agent to work with. To learn more about home buyer rebates, contact a real estate agency in your town.