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Realtors Pay Home Buyers Closing Costs!

By
Real Estate Agent with MungoList.com

As the condition of the economy becomes more and more uncertain, it is critical that home buyers look to save as much money as they can in every aspect of their spending. One of the most significant investments consumers will ever make is the purchase of a home. With this is mind, home buyers must become educated about the home buying process. The internet has an abundance of information for home buyers and it is a good place to get started. With the surplus of information readily available to consumers, many buyers are able to successfully purchase a home on their own and that is great. But what most homebuyers don't realize is that they can have a Realtor represent them as their personal buyer's agent for free.

Realtors are paid a percentage of the commission at closing form the total proceeds of the sale. Realtors can provide valuable insight, information and assistance when it comes to such a significant investment. In addition to providing real estate expertise, some Realtors will also provide a commission rebate that home buyers can use to pay their closing costs. The rebate can actually be used any way a home buyer desires but the majority of home buyers use it towards their closing costs. Closing costs can be very expensive and in most cases are paid by the buyer and/or seller, but in recent years more and more Realtors are helping home buyers by contributing to these fees.

Realtors typically reserve rebates for friends and family members. Most Realtors don't advertise commission rebates and many will act as if they don't know what you are talking about if you bring it up. Up until 2006, consumers had to have an "In" to find the Realtors that would provide a rebate but with the emergence of SharpBuyers.com home buyers can now easily find rebate Realtors. When home buyers sign up at SharpBuyers.com, they receive a home buyer's guide, links to important resources & information, and they are connected to a local Realtor that will provide up to a 50 percent commission rebate. Real estate rebates are legal in 39 out of the 50 states and are supported by The Department of Justice.  Click Here to read the DOJ's stance on real estate rebates.

Doug Fritchie
DOUG FRITCHIE-Silver Legacy Properties,Inc. - Portland, OR

Hey Robert,

  An interesting concept. A little of something is better than nothing. Hopefully commissions will not diminish to such a small level as to drive great Realtors out of the business.

May 27, 2008 04:15 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA

"But what most homebuyers don't realize is that they can have a Realtor represent them as their personal buyer's agent for free."

Most buyers in the Seattle Area recognize that the services of their agent are paid for as part of the sale price of the home, and are in fact not "free". 

May 27, 2008 04:18 AM
Anonymous
reobuzzard

Yeh, well, good luck on that one, commissions have dramatically shrunken as home sales prices and volume have shrunk.  Realtors are in business to feed their families, good luck paying your own mortgage after giving up 50% of your INCOME.  I make a point to let me my clients understand that my commission is my INCOME.   If you go to a restuarnt and you pay the waitress a tip, you have a clear understanding that the is earning a below minimum wage, so you give her a tip to help make up the difference.  You have a buyer that makes $80K plus a year, and obviously can afford the home - you the struggling Realtor give up 50% of your INCOME from the sale to the Buyer???? Not making alot of sense at the end of the day when you don't know when your next deal is coming, yet the buyer has a 9-5, and you the good realtor made sure he got in a home that was not over his head in the first place, Right?????   Buyers need to be informed that there are alot of Realtors struggling to keep their homes as well.  In fact, the down turn on the market hit Realtors harder than anyone, that was the source of our INCOME.

May 27, 2008 04:22 AM
#3
Adam Brett
The Adam and Eric Group - Fullerton, CA
The Adam and Eric Group, Fullerton's Finest

I never pay for my buyer's closing costs.  I work very hard for my money and if they cannot afford closing costs - they should not be buying the home.

May 27, 2008 04:34 AM
Robert Nichols
MungoList.com - Boston, MA
MungoList.com

Access to information via the Internet, has changed the need for the full suite of services brokers and agents provide to consumers. SharpBuyers.com rewards home buyers by providing a commission rebate based on the number of accompanied showings. The rebate ranges from 20%-50%. This is merely an extension of my business for tech savvy buyers.

May 27, 2008 05:06 AM
Matthew Zgonc
Aksland Real Estate - Modesto, CA
Realtor, CFS, CVS

Most Realtors generally give a discounted commission if they double end the sale. I think your company has a place in the industry, and it is interesting to see how it will affect Realtors in the long run. We had companies like this in our area, but they all have gone out of business due to lack of sales.

May 27, 2008 05:24 AM
Anonymous
Wasimul Haque

This is good , I really liked it.
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Sep 21, 2008 09:07 PM
#7