Rebates for Buyers?
Have you heard of this? Some companies are actually giving buyers a rebate if they buy through them! Here's a list:Redfin; BuySide Realty; Zip Realty; RebateReps.com; LendingTree.com and RealEstate.com.
This is an old tactic made new, to entice buyers to real estate companies. However, the internet is making it more attractive this time, and truly allows real estate agents for buyers to do less work -- and therefore, offer some cash incentive to come on board with them.
As we all know, the seller pays the real estate commission. People selling homes typically pay commissions of 5% to 6% of the price, which is split between brokers representing the buyer and seller. On a $300,000 home with a 3% cut for the broker representing the buyer, BuySide would earn $9,000 and pay 75% of that, or $6,750, as a rebate to the buyer. Neat deal, yes?
Not all of the companies that are providing rebates to buyers provide as big a rebate as BuySide. However, the enticement to sign up as a buyer with one of these companies is big. That rebate could help ease the pain of closing costs and even provide some money for new furniture for the new house! So, why would a broker give rebates to buyers?
Well, one reason is that they know they are winning your future business. The second is "bare bones" service. The premise of BuySide and other rebaters is that many consumers nowadays find the homes they want to buy online and should be able to share in the commission paid to the agent that helps them complete the transaction. BuySide customers will view homes on their own rather than being driven around by agents. This is a great deal for the consumer who wants to be in control of the buying process.