January 2009
The State of Maine allows Realtors (Agents, Brokers under an Agency) to offer Real Estate Rebates to customers and clients- The US Department of Justice promotes such rebates as they foster competion- in fact there are only a handful of states that do not allow Real Estate Rebates, and several of those states have been sued by the Us Department of Justice for limiting competiton by promoting their anti rebate laws.
see the link below for what the US DOJ has to say about Real Estate Rebates:
http://www.usdoj.gov/atr/public/real_estate/rebates.htm
I think Real Estate Rebates are an awesome tool- and I am proud that Maine Realty (Portland Maine) offers them to our customers. Our rebate program is simple, if you purchase a property through Maine Realty as your buyers agent we give you a cash rebate- payable at closing for 1% of the purchase price of the property. Maine Realty can do this because it gives such a high percentage of its commission back to its agents and brokers (typically 90% of the gross split).
Real Estate rebates allow buyers to have more money in their pocket- they are not getting a discounted service when they get a rebate - they are getting full buyer agency representaion from start to finish-
I have heard many Realtors in my area speak badly of real estate rebates, simply because they do not know anything about them- and because their agencies have a policy of not allowing rebates most likely because the rebate would cut into their bottom line.
Where I am a 90% broker at my agency, Maine Realty can offer the wonderful gift of a 1% rebate to my clients and customers and I will still net more commission than if I was working at a traditional "large big box" agency so it is a win/win for me, my clients, and my agency.
I would love to hear any comments that anyone has on these rebates- also I'd love to hear from buyers who are looking to purchase property in Maine and would like to get paid a cash rebate at closing!
Our program pays 1% of the purchase price up to 1,000,000 maximum rebate of $10,000
for more info see my website: www.sellwithpaul.com
from http://www.usdoj.gov/atr/public/real_estate/commission_table.htm
 
Consumers Can Save Thousands of Dollars in Commissions Consumers who live in states permitting them the option to choose innovative brokerage options, such as rebates or fee-for-service MLS-only packages, can potentially save thousands of dollars on commission payments. This table shows that consumers can save as much as $7,500 in commissions on the sale of a median-priced home. Table: Brokerage Options and Potential Savings on Home Sold for $222,273
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