Everyone wants a deal and a rebate seems a good way to get one, but is it? I don't think so though my state, New Jersey, very well may join the rebate band wagon.
I believe rebates distort the market and allow producers (of products, services, etc) to charge different prices to different consumers. In a nutshell - price discrimination. In the end this results in higher average prices.
As a provider of real estate services for home buyers I decide what I will charge my clients. If rebates are permitted, some consumers will select a real estate broker or agent based on the existence of size of a rebate offered. Can you imagine picking an attorney in that way?
There is no doubt that commissions are too high but until there are basic structural changes in the industry that will continue. There are simply too many agents and many of them don't know what they are doing unless it is a run of the mill transaction. There are very few run of the mill transactions.
Getting a license to cut hair takes 1200+ hours of study and 10s of thousands of dollars. Getting a license to sell real estate takes less than 100 hours and maybe $300-$500 dollars. Many people get a license to sell a house to their friends and relatives and that is the extent of it. If their purchase was "run of the mill" they might have done ok. If not......
See NJHomeBuyer.com's FaceBook page at: NJHomeBuyer.com Realty on FaceBook
For those who have a real desire to own a home , have good credit and want help with the search, the process and especially negotiating the purchase, I'm available. My speciality is discovering financing options and negotiating purchase price and terms as an advocate for home buyers. Each home of interest requires analysis.
My primary service area is Camden, Burlington, and Gloucester counties in Southern New Jersey.
Paul Howard, Broker
Cherry Hill Nj 08002
MEMBER: NAEBA (National Association of Exclusive Buyer Agents www.naeba.org )
Either I have smarter than average buyers or I am a smarter than average broker - or both. Either way, I help home buyers get more for less.