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Cash back at Closing - Buyer Agent Incentives

By AJ Martin

Services for Real Estate Pros with none

December 26, 2006 02:28 AM

Looking for opinions and information about cash back at closing promotions like inest but not restricted to new homes.

"iNest's unique relationship with leading homebuilders, and our patented program, allows us to streamline the real estate sales process and pass the savings along to you in the form of a 1% rebate on the base* closing price of your home. Your rebate is a portion of the sales commission earned by iNest Realty when you purchase your new home as an iNest registered user."

Do any of you offer cash back at closing incentives?

If so Do these seem to work well?

Are there structured programs in place ?

Do any of you use these for sales leads?

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Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Coldwell Banker Realty

It depends on the circumstances - but with the extremely high co-brokes offered by the builders - some at 10% or more - there certainly is room to negotiate that with the client.

Dec 26, 2006 02:37 AM

Renée Donohue~Home Photography

Savvy Home Pix - Allegan, MI

Western Michigan Real Estate Photographer

Like Tony mentioned: with high co-brokes you can definitely play that game but I reserve the right to put my commission on the chopping block for some last minute backfire or negotiation if something would go wrong.

Right now with the way the market is, you should be able to write in 100% of the closing costs without having to give up your commission. With the way 100% loans are being utilized and as far as underwriting rules go - make sure your rebate is OK with the lender (and there should be a disclaimer about this if you are going to go this route with advertising) and make sure that commission rebate shows up on the HUD-1. Don't find yourself tangled in a RESPA nightmare!

Dec 27, 2006 05:14 AM