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Buyer's...take advantage of the $8,000 tax credit.......but do your homework!

By Craig Davidenko

Real Estate Broker/Owner with SavannahRealEstate.com

September 09, 2009 03:00 AM

1st time homebuyers have an excellent incentive to "get off the fence"- (A great campaign by the NAR) the $8,000 1st time homebuyers tax credit (a stimulus gift from the government for you just for buying a home........but is the gift really yours ??? Well, you will have to do some homework and research properties that meet your criteria(instead of watching re-runs of "Seinfeld") Once you have found the perfect property or properties you will do your self a favor by finding a Realtor that offers a rebate on his or her commissions. One way to find these Realtors in your area is to type a " flat fee or flat rate real estate (your city). You should find several agents willing to offer rebates or flat fee listings. If you find a FSBO - bonus but if your not comfortable handling the transaction yourself a discounted commission to a buyers agent might be well worth it.

The Flat rate/Flat fee platform is steadily becoming a popular way to buy and sell real estate. The real estate industry has enjoyed a life past the advent of the internet that no other business has been able to do…….do in part to it’s powerhouse “THE NAR” but finally Realtors are facing a “reality” check. The consumer is demanding savings on commission because they are willing to do some of the work inorder to buy and sell their real estate. Judgements by the DOJ have forced Realtors to accept discount Realtors to the MLS roundtable. The MLS is “out there” for everyone to see….it is no longer just for Realtor’s eyes only. In any event the NAR and old school Realtor’s will try to throw discount Realtors under the bus but the irony is that they will ultimately have to get on the bus in order to stay in business!!!

Check out this fact: A first time homebuyer has a tax credit of $8,000 but if the first time home buyer purchases a home with a 6% commission then that $8,000 and $1,000 out of their own pocket go to pay Realtor commissions…….Ouch!

Buyers if you do your home work you may be able to keep some of that $8,000

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Roy Kelley

Retired - Gaithersburg, MD

Home buyers should be very wary of discount brokers. They often receive less than full service.

Sep 09, 2009 03:03 AM

Craig Davidenko

SavannahRealEstate.com - Savannah, GA

Roy, home buyers can choose what services they need.....if they want full service all they have to do is ask. "Discount brokers offer the same service as traditional brokers but they simply charge less!

Sep 09, 2009 03:08 AM

Anonymous

Back To The Future

Roy,

I have been in the real estate business for a decade, and the reality now is quite simple. Due to the Internet, (and the sign of times), buyers and sellers are "doing their homework" and we, as realtors, no longer hold the "key" to their successes.

Case and point. EVERYONE wants and needs to be on the MLS to showcase their property. Flat-Rate or Flat-Fee brokers/agents can make their wish come true, by accepting a small fee upfront and placing their property on the MLS.

In reality, there is a very realistic and sincere chance the property will be found because it was on the "MLS" - and NOT a magazine, booklet, yard sign, or even news paper. Buyers agents search the MLS for their clients, and others find "MLS listings" through a wide-variety of aggregation and local web sites.

In the end, if the "key" is more than likely the "MLS" then WHY in the WORLD would agents keep spending...no..."WASTING" their money on traditional media advertising which are simply USELESS.

Short answer: In the past, sellers "wanted" to "feel good" about seeing their property in that shiny magazine (getting rained on) in front of your local Kroger or Publix. Why? Because it made them feel good, although little did they know, NO ONE SELLS PROPERTY from "real estate books/guides/magazines/newspapers". EVERYTHING is done on the Internet. EVERYTHING. That is exactly WHY nearly ALL forms of traditional media have hit the "panic button" and further, some have either closed their doors or filed for bankruptcy.

In closing, wake up everyone. If you are paying a "popular" local real estate agency 5%, 6%, 7% or...even 8% -- you might as well burn your money in the backyard fire-pit, or...better yet, spend that money on a full-brain-examination at your local hospital.

Sep 09, 2009 01:54 PM

In our state, buyers do not pay for realtor services so they KEEP all of the 8,000

Sep 17, 2009 04:23 AM

NO they just pay the 8k in the purchase price and the seller will pay!

Sep 17, 2009 04:28 AM

Happy RE Investor

"One way to find these Realtors in your area is to type a " flat fee or flat rate real estate (your city). You should find several agents willing to offer rebates or flat fee listings."

But first, make sure you obtain an unalterated copy of the agents expired listings as compared to the sold listings. You don't want your property on the expired list, do you?

Oct 13, 2009 03:21 AM

Mr. Happy, your right but don't fprget most listings on the MLS are sold by someone else than the listing agent! ;)

Oct 13, 2009 03:31 AM

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