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What Your Real Estate Agent Hasn't Told You

Aug 17, 2007
Perhaps the best kept real estate secret is out. Real estate agents are offering cash rebates to new home buyers. That's right. There are agents willing to share their commissions with home buyers. If you're wondering why you haven't heard about this before, here are a few possibilities:

1) Traditional thinking is that the agent has worked hard for the commission and they deserve the entire amount. The agent usually spends a lot of time and effort with prospective buyers and the agent is not inclined to share commissions earned through these efforts.

2) Many agents believe it is illegal to offer rebates. While this is certainly true in a small number of states, the vast majority of our states do allow cash rebates on real estate. Texas, Nevada, Georgia and Virginia are just a few of the states that allow cash home rebates. The rebates can only be paid to a principle in the transaction and must be disclosed. If you're a buyer, you are a principle.

3) Not all agents can afford to give up a percentage of their commission to their buyers. They already give a large portion of their commission to their broker. They certainly can't afford to split off even more of their commission to a buyer.

But, times are changing in the real estate field. As consumers become more educated, they are actually accomplishing tasks that were traditionally allocated to their real estate agent. Tasks like searching for homes on the internet and visiting model homes on their own.

Buyers often have a pretty good idea of where they want to live before they actively start viewing different homes. Then, they like to go at their own pace when viewing the properties. Many don't need or want an agent around for their search.

The new breed of agent is willing to reward consumers for absorbing what was traditionally the agent's work. "If I don't have to spend time showing buyers different homes, then I'm happy to split my commission with them" says Darlene Bauer, president of RebateJazz.

If you are in the market for a new home, condo or land, and you are already spending your own time researching for your purchase; why not first check to make sure your state allows rebates? And then seek out an agent that is willing to share their commission with you.

Cash rebates create a win-win situation for all the principles involved in the transaction. The seller makes a sale. The agent earns a commission. And the buyer puts cash in their pocket at a time when money could be a little tight after making such a large purchase.
About the Author
Darlene Bauer with http://www.RebateJazz.com offers cash rebates to new home and land buyers in the state of Texas. Discover how RebateJazz.com shares commissions with you!
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