Real Estate Buyer Rebates are Legal in Virginia
There are a lot of talk and assertions by some on the internet that it is illegal or unethical for a real estate agent to provide a rebate to a buyer in a real estate transaction. While this is true in some states, it is not for Virginia. For those states that ban such rebates, the Anti-Trust Division of the US Department of Justice (DOJ) is actively working to get those lifted to promote competition in the real estate industry to hopefully reduce costs in all states.
The historical problem associated with rebates in the real estate industry is one of kickbacks to other businesses, such as providing a kickback to a title company or another business to direct business a certain way. Through kickbacks, some agents were able to corner the market and prevent competition. This has been made illegal in all states through the federal Real Estate Settlement Procedures Act (RESPA). With regard to commission rebates to buyers, the issue is one of disclosure. According to the DOJ and the Department of Housing and Urban Development (HUD), real estate agents may rebate a portion of the agent’s commission under RESPA.
The rebate must be listed as a credit on page 1 of the HUD-1 in Lines 204-209 and the name of the party giving the credit must be identified. Real estate agent or broker commission rebates do NOT violate Section 8 of RESPA as long as no part of the commission rebate is tied to a referral of business. As part of my business model, I provide buyer rebates to my clients when I only represent the buyer in a transaction. What I have found in today’s market is that lenders get a bit nervous when they see a large credit to the buyer from their agent. Thus, it is imperative that as the buyer’s agent to address this issue early with the lender as to how they will feel comfortable on how the credit is to be applied. I typically will credit the rebate toward closing costs and any extra toward the buyer’s down payment. I have found that lenders are happy to see the rebate so long as it does not show up as a surprise at the last hour.
Want more money in your pocket for closing? How about being able to afford a bigger/nicer Virginia home? You can with Equity First Realty! Now Equity First Realty Gives YOU Cash Back Buyer Rebates at Closing.
Buyer rebates give you cash back at closing. If you have ever wondered how cash back rebates work for real estate? Here is the inside scoop…
When real estate agents sell a property, they usually collect a commission between 2.5% and 3% of the property's gross sales price. So, on a $400,000 house, that would mean a commission of $12,000.00 to the selling broker. Out of that $12,000 commission you would receive $6,000 at closing (rebate check). Equity First Realty offers rebates of 1.5% on most new construction and between 1% to 1.5% for pre-owned homes for sale in Virginia. In other words, we can refund half of our 3% commission to you for new construction and 1/3 to half of our 3% commission for resale properties. Yes, we'll pay you to be our customer!
Many of today's home buyers are clearly willing and (with the Internet) able to search for and locate their own properties without relying on the agent to find houses for sale for them. For doing some of the work, Equity First Realty thinks you are entitled to a portion of that commission. So, we're willing to give you back 1.5% of the sales price for letting us help you purchase your next home.
Get a cash back real estate rebate when buying your home. If you are looking to buy a home in Richmond Virginia area, then why not get a cash back home rebate? Just like retail product promotions for rebates where you get money back after you purchase a product, you too can get cash back on your home purchase! Equity First Realty offers 1.5% of our real estate commission with buyers that use us as their representative in their real estate transactions. We are your premier Richmond Virginia Discount Real Estate Broker!
The Internet has changed the way real estate is bought and sold. Today's consumers have information at their fingertips. That saves us time and money and we pass those savings along to you with a Home Buyer Real Estate Rebate.1% or 1.5% the commission we earn goes back to our clients. The typical Richmond Virginia real estate buyer gets back between $5,000 to $8,000. Sometimes Much More!
Most Realtors won’t offer to give you a real estate rebate and will keep the whole commission to themselves, but Equity First Realty wants to PAY YOU for the work we know you have put into your own real estate search. The average Richmond Virginia commission can on average bring in a real estate commission of $15,000, and if you work with us, $7,500 of that can be cash in your pocket or even go towards your home purchase closing costs! Find out how you can take advantage of a home rebate today! Contact me today if your thinking about buying or building your next home, I look forward to servicing your needs. Real estate rebates are legal in the state of Virginia. Commission rebates are 100% permitted in Virginia and promoted by the U.S. Department of Justice: http://www.justice.gov/atr/public/real_estate/rebates.html.
We are your premier Richmond Virginia Discount Real Estate Broker! *certain conditions apply
The Marcus Rice Team specializes in residential and commercial real estate in the whole state of Virginia. We are tech savvy realtors with over 20 year’s experience. Please join us on our social networking network to stay up to date on Virginia real estate news and more...
Marcus E. Rice Principal Broker & Owner, CDPE, VAR, RAR, FAAR, NAR, EFR, BBB
Equity First Realty Broker Site: www.Equity1stRealty.com
Marcus Rice Team Site: www.RichmondVaHome.com
Military Appreciation Rebate Site: www.militaryvahomerebate.com
Virginia Hometown Hero Rebate Site: www.vahometownhero.com