Home Buyer Rebates: Getting Cash Back on Your Home Purchase

Many people would love to buy a home, but the cost of doing so is prohibitive.

Sometimes, closing costs can get in the way, or the cost of furnishings and remodeling that a home needs can be too much. It can seem impossible to be able to get the home that you have always wanted.

Thankfully, home buyer rebates can be a big benefit to those who are looking to buy a home. This cash reward can make it much easier to afford to buy a home, and it can make it easier for agents to sell homes to clients. We will discuss the benefits of this helpful rebate and what it can do to benefit both buyers and selling agents involved in the home-buying process.

What is a Home Buyer Rebate?

Also known as a commission rebate, the home buyer commission rebate can be offered to home buyers in many states in the US. This rebate can be used for almost anything, from closing costs to remodeling work to furniture purchases. This is one of the most helpful ways to motivate people to buy from you if you are a seller, and it is a huge perk of buying a home that comes with this benefit if you are shopping for a house to purchase.

Buyer rebates can be a powerful incentive, particularly in places where home prices are skyrocketing or for buyers who do not qualify for other buyer rewards programs or housing assistance programs.

How Does a Home Buyer Rebate Work?

It can be helpful to learn more about how this kind of rebate works. It might sound like this kind of buyer benefit is too good to be true if you are not aware of how it can be added to the home purchase or home sales process.

Home sales provide sellers and buyers’ agents with large commissions. These commissions can vary in their amount based on the kind of property that is being sold or bought and the experience or size of the brokerage or agent in question that is selling the home. The average amount of the overall purchase price of a home that is offered in commission is usually about 5.45%.

When there are two agents involved in the sale, they usually split the entirety of the commission. This means that each agent will get about 2.7% of the sale. If a home sells for $300,000, each agent will get $8,100.

The buyer commission is taken from these commission amounts. Usually, the buyer of a home with a buyer rebate on offer will get a portion of their agent’s commission connected with the sale. The amount of your buyer rebate can vary. Many sales will offer a buyer rebate of about 0.5%. In some cases, the commission might be higher.

You can see just how useful this money can be when you are shopping for houses. You will be able to do anything that you want with this money as well, which cannot be said for other kinds of rebate programs associated with home buying and home ownership.

Why Are Home Buyer Rebates So Helpful?

The home buyer rebate can be a big benefit to a variety of different kinds of home buyers. Unlike programs that help new homeowners buy their first house or programs that are reserved for veterans, this buyer perk can be offered to anyone. Investors, first-time home buyers, and other parties can all benefit from the home buyer rebate. Other housing programs require that buyers meet the requirements of the program to be able to access the offered benefits.

While the commission amount can vary from housing sale to housing sale, the cash that is given back to the buyer from the home buyer rebate is often more than enough to make it worthwhile to prioritize these kinds of deals. Additionally, these rebates do not impact the profitability of sales for the agents involved, so they are very attractive to everyone who wants to purchase or sell a home.

Can You Negotiate for the Amount of Your Home Buyer Rebate?

While you might think that negotiating for this kind of rebate would be easy, you have to remember that you are asking your buyer’s agent to give up part of their commission. Those who sell houses and who help buyers to shop for homes need to be compensated for their time and effort. Be cautious about how you negotiate this part of the deal. It is usually best to let your agent handle this important process for you.

Agents who offer this benefit to those who are buying homes with them or from them will be experienced in the way that this sales perk works. Trying to change the way that the home-buying deal is written will often not be allowed by either party. Negotiations with regard to housing sales and purchases are often best handled by the two sales agents involved in the deal.

Home Buyer Rebates Can Help You Get Cash Back on Your Home Purchase

If you have been worried that you will never own a home due to the cost of housing, think again! The home buyer rebate can help you to afford to buy the home of your dreams. This powerful buyer incentive is a great way to save money on your home purchase, to afford to pay for things like furniture and remodels, and to locate the right kind of selling agent for your needs.

If you didn’t know that this kind of buyer benefit was out there before reading this article, you should now be armed with the knowledge that you need to find the perfect home for your budget! Ask your real estate agent to make sure that you are shopping for homes that offer this buyer cash-back deal so that you can be sure that you buy a home that you can truly afford and which is perfect for your financing goals.