- What is a buyer rebate?
- Is a buyer rebate legal?
- Wow, how come I’ve never heard of this before?
- Do I have to use you as my agent to get the rebate?
- Do I receive a check at closing?
- So how is the rebate processed?
- Do all lenders know how to do this?
- Do I need to sign any paperwork to receive the rebate?
- Is the rebate I receive considered taxable income?
- Will I receive the same level of service I would with an agent who is not giving a rebate?
- Are there any restrictions on the house I can buy and still receive the rebate?
- What happens if the home is below $100,000?
- What happens if the Buyers Agent Commission is below 3%?
- Can you give me an example so I can better understand?
- What areas of the state do you offer the rebate?
- What if I’m already working with an agent?
- Does the Buyer Rebate Program work with new home construction?
- Are foreclosures and short sales eligible for the rebate?
- What is the MLS?
- What does limited service mean?
- Can you help me price my home?
- Where will my home be marketed?
- Will my listing in the MLS look the same as full service listings?
- Do I have to take my own pictures?
- How will potential buyers contact me to see my home?
- Do I have to be at home when someone wants to see my home?
- Do I have to offer a commission to a buyers agent?
- OK, but do I have to offer the 3%?
- I’m using your Limited Services Listing program, what happens to the 3% commission if I find the buyer?
- Can I make changes to my listing?
- I’m concerned about paperwork, where do I get all the documents required?
Buyer Rebate Answers
Q: What is a buyer rebate?
A: A buyer rebate is where the agent who represents the buyer credits back part of the commission earned at closing.
Q: Are buyer rebates legal?
A: Yes, buyer rebates are legal in 40 states including South Carolina.
Q: Wow, how come I’ve never heard of this before?
A: Because the traditional high commission real estate agent doesn’t want you to know.
Q: Do I have to use you as my agent to get the rebate?
A: Yes. Out of over 3000 agents in the Upstate there are only a handful that offer buyer rebates. To be eligible for my program I would need to represent you in the purchase your home.
Q: Do I receive a check at closing?
A: No, that would be illegal.
Q: So how is the rebate processed?
A: In coordination with your lender, the amount of the rebate is credited to you on the closing statement, reducing the cost of buying your home.
Q: Do all lenders know how to do this?
A: No they don’t, so it’s important you work with a lender who knows how to process a rebate.
Q: Do I need to sign any paperwork to receive the rebate?
A: Yes, a signed Exclusive Buyer Agency agreement is required to work with your agent. The lender will also require some documentation.
Q: Is the rebate I receive considered taxable income?
A: No, the IRS does not consider a rebate income.
Q: Will I receive the same level of service I would with an agent who is not giving a rebate?
A: Yes, and in most cases better. I am a full time real estate who believes in practicing the Platinum Rule. Treat people better than expect to be treated.
Q: Are there any restrictions on the house I can buy and still receive the rebate?
A: Yes, the home must sell for above $100,000 and the Buyers Agent commission must be 3% or greater.
Q: What happens if the home is below $100,000?
A: Sorry, you will not be eligible for the rebate.
Q: What happens if the Buyers Agent Commission is below 3%?
A: That we can work with. Since my minimum buyer commission is 3% you can use your rebate to make up the difference instead of coming out of your pocket.
Q: Can you give me an example so I can better understand?
A: I sure can. A 3% commission rate on a $200,000 home would be $6,000, so your 25% rebate would be $1500. A 2.5% commission rate on that same house would be $5000, a $1000 difference. I will split that difference with you 50/50. So I will apply $500 towards the $1500 difference and your rebate is now $1000.
Q: What areas of the state do you offer the rebate?
A: My license allows me to practice real estate anywhere in SC, but I choose to focus my business here in the Upstate so I can best serve my clients with superior knowledge of local market conditions.
Q: What if I’m already working with an agent?
A: If you have a signed Exclusive Buyer Agency Agreement then you are too far into the process and you are not eligible for a rebate.
Q: Does the Buyer Rebate Program work with new home construction?
A: Absolutely, just make sure on the first visit to the community you register me as your real estate agent.
Q: Are foreclosures and short sales eligible for the rebate?
A: Foreclosures are eligible and follow the same minimum home price and commissions as traditional sales. Short Sales are not included due to the tremendous amount of work required on the agent’s part.
Flat Fee MLS Listing Answers
Q: What is the MLS?
A: MLS stands for Multiple Listing Service and is the primary tool agents use to list homes for sale and to find homes for their buyers. Listing your home in the Greenville MLS is the best way to show your home to highest number of buyers.
Q: What does limited service mean?
A: Essentially you are contracting with a real estate professional that provides a reduced scope of services in exchange for a greatly reduced fee that is paid up front. You are only leveraging the agent’s marketing ability to get your home in front of the largest pool of potential buyers without representing you as a client.
Q: Can you help me price my home?
A: A Comparative Market Analysis can help provide a pricing strategy and is part of the Standard and Premium programs. If you’d like to add a CMA to the Basic program it is $75.
Q: Where will my home be marketed?
A: The first step is entry into the Greenville MLS. From there we have syndication agreements with all the major real estate portals including Realtor.com, Zillow and Trulia.
Q: Will my listing in the MLS look the same as full service listings?
A: Yes, the structure will be exactly the same. FYI: The best listings always contain high quality photographs and great copy writing.
Q: How will potential buyers contact me to see my home?
A: Potential buyers and agents will contact you directly to schedule a home showing.
Q: Do I have to be at home when someone wants to see my home?
A: That depends. With the Basic program you must be available to show your home for all potential buyers and buyer agents. With the Standard program, since we provide you with an MLS coded lock box, you will not have to be there with a buyers agents wants to show your home. Most home sellers find this option a lot more convenient. The more difficult a home is to show the less likely a buyers agent will show it.
Q: Do I have to offer a commission to a buyers agent?
A: Yes, in order to be listed in the MLS you must provide a commission to a cooperating agent.
Q: OK, but do I have to offer the 3%?
A: In my experience I have found that providing 3% is the optimal commission to offer a buyers agent. Unfortunately anything less and your home will not be shown as often. It’s a shame but that’s the truth, especially for a FSBO seller. So yes, 3% is the buyer’s commission for our Flat Fee MLS listings.
Q: I’m using your Limited Services Listing program, what happens to the 3% commission if I find the buyer?
A: That’s the beauty of the program, you keep that money and you pay zero commissions.
Q: Can I make changes to my listing?
A: Heck, things change so yes you are allowed to make changes 4 times. Any changes after that are $50 per occurrence.
Q: I’m concerned about paperwork, where do I get all the documents required?
A: We have you covered as all documents, disclosures and addendums are provided.