A trend that was made popular on the west coast is the issuing of rebates to buyers after a closing, this is also known as fee splitting. Many of the agencies who issue such rebates often give a percent of the purchase price back to the buyer if the buyer chooses that particular firm to be the selling agent. This percent is normally 1% of the purchase price.
This rebate is often viewed favorably from the buyers and selling agents alike. The rebate is a tool the selling agent can use to show the buyer the value of choosing them. The buyer gets the added benefit of getting a rebate at their closing.
If you are not familiar with these rebate programs, you should do some research online, and check with your local real estate commission. 41 states (including Maine) allow such rebate programs in some way. Each state has the ability to place specific restrictions and guidelines to any fee splitting program.
These rebate programs should not be confused with "Kickbacks". These rebate programs are legitimate practices which owners and designed brokers can use in their businesses. When these programs are used within the guidelines of the law they can be great tools to promote competition, especially in a market where real estate sales have slowed or are softening.
Paul Diou
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