Buyer FAQs
1. How to Get Your 2% Rebate?
In order to get a cash back rebate from Realmart Realty, a buyer rebate agreement must be signed. You can provide us with the type of home
and area criteria, we can setup home alerts in the MLS system. All MLS listed
properties are available for public viewing on various MLS websites as well as Realtor.com.
Not only can you be completely self-sufficient in your search by utilizing the tools
on the internet, but you have a better idea of what
you want than the typical agent selecting properties for you, this will save time.
Once a property is chosen we write and present the offer, handle all the negotiations,
arrange for attorney review, schedule inspections, help on mortgage application,
appraisal, title search, etc all paperwork thru the day of closing. An agent representing a buyer normally
gets 3% of the purchase price. We give you 2%, and we keep 1%.
2. Can I Get Rebate with New Homes Builders?
Yes. Getting your 2% rebate when buying a new home is the easiest of all. All the major
builders welcome agents, and there are never any discount if buyers purchase directly from
builders, so getting the rebate makes perfect sense.
3. Is Rebate Always 2%?
Our personal service fee is always a minimum 1% of the transaction or $3000 whichever is higher.
If there is 3% paid to the buyer’s agent, your rebate will be 2%, if the commission is 2.5% your
rebate would be 1.5%. The terms of the rebate are spelled out in our Buyer Rebate Agreement.
The maximum of your cash rebate is 2%.
4. Is the Rebate Taxable?
The rebate is a large sum of money. In August 2010, we closed a home at $860,000 and gave the
buyer $16,500 rebate. If the rebate is taxable, that reduces the benefit significantly. Please
ask your accountant for your final answer. However, we did our own research. Please read this
blog on IRS ruling for real estate buyer rebates.
Reator Blog: Is Buyer Rebate Taxable?
"...A payment or credit at closing from [E-Brokers] represents an adjustment to the purchase price
of the home", the IRS ruled, “and generally is not includible in a purchaser’s gross income.”
The IRS cited its own history of letting car-buyers keep rebates, and of providing relief to home-buyers. March 2007, Blog By Redfin
5. How to Search for & Find Your Perfect Home?
Search for properties online using Realtor.com. Custom property search allows you to save the results
of your searches and pick up where you left off, simply by logging in. You can also program it to send
you automatic email alerts for new listings that match your criteria. We will also set up automatic alerts
depending on your home criteria on the MLS site(s). You will review and only select the ones of interest,
this will save time for you and us.
If you come across one of our own listings, please call us at
1-888-362-6543, and dial in the MLS# to get the homeowner's phone#. You may
call the owner directly for an appointment, or with any questions you may
have for them.
6. Can I Lose the Rebate?
Yes, we will not be able to represent you until you have signed a Buyer Rebate Agreement
(you may cancel this agreement anytime). The Buyer Rebate Agreement will protect and
guarantee the rebate at closing and our services during the entire transaction. Once you sign a
Buyer Rebate Agreement with us, you must disclose, let other parties know you are being represented.
If you are asked if you have an agent, the most appropriate response is "YES, I/we have an agent at
this time". Never mis-represent yourself to a realtor and/or homeowner or trick him/her into showing
you the property, then switch agencies, it’s unethical. We will not be able to represent you if that
occurs and you will lose out on the rebate.
After you sign the agreement, we will represent you as your buyers’ agent, We will provide you with
business cards, and you can use them to show agents and/or give them out at public open houses to inform
other parties you’re being represented. If when driving thru neighborhoods you see a home of interest,
call us for availability. Only if we are not available and if the home owner(s) are
outside, introduce yourself to them and provide them with our business card, ask them to give it to their agent,
so an appointment can be made. Always ask them when is the next open house
scheduled. You do NOT need to tell listing agent or seller that you are getting a
Rebate, but you must disclose you are represented. We strongly advise you NOT to knock on
peoples doors. We also advise that you sign in with Realmart contact
information at any open houses, and leave our business card to the showing agent.
7. Are Open Houses the Best Opportunity To Earn the 2% Rebate?
YES, open houses are your best opportunity, but you must bring our business
cards and sign in our name. Most new listings (<4 weeks old) have open houses.
So if you are in a particular market, the chances are the old
listed homes are not what you are looking for. Listings that have significant price change will also have open houses.
Sometimes, open houses are hosted by
other agents in the same office. When you are asked to sign any paper or
sign in sheet, read carefully before you sign. Always sign in Realmart Realty
contact information. Be sure to clarify to the agent that you are working
with an agent already and present them with our business cards.
Soliciting clients from other agents is strictly prohibited, so if someone tried
to represent you after you told him/her that you are already represented, please
notify us ASAP.
8. If we deal directly with the listing agent, wouldn't they be willing to give
us 2%? Or wouldn't the seller get a discount if we dealt with the listing agent
or talked to the seller directly?
The buyer's agent's share of the commission is usually half of the total 6%
commission. If you buy a house directly through the listing agent, all of that
3% will go to them, along with the other 3% they are probably getting
for listing the property (total of 6%). Even if you deal directly with the
seller, the standard 6% listing contract states the listing agent still gets the
full commission. No discounts for the seller finding the buyer, even if the
buyer is his brother and the agent did absolutely nothing other than sign the
listing agreement. The standard 6% Exclusive Right to Sell Listing Agreement is 100%
biased toward the realtors. The other factor
is that almost all the big brokers don't
allow their agents to do the kind of discounts. And even if they were
allowed, it still wouldn't work because after the agent split the 3% with their
broker, there wouldn't even be enough left to give you 2% anyway. You probably
don't know that most agents must share 50% of their commission with their broker
at the big name companies. Even if they agreed to work for free, they won't be
able to give you 2% rebate.
Another important factor, do NOT ask listing agent to provide you with a rebate,
it compromises your negotiation when the sellers know you have a rebate.
Let us get your the best price first, only after contract is signed, shall you
disclose your cash rebate to all parties.
9. What if There Are NO Open Houses?
For some older listings, there might not be any open houses.
You can still do your normal open house tour in your neighborhood on Sat or Sun at 1-4pm. We
do NOT recommend you knocking on people's doors, however, when you are previewing the house,
if you see the home owner(s) outside, introduce
yourself to them and provide them with our business card and ask the seller:
"...I am on an OPEN HOUSE tour today, and came across your home, and I am very
interested. I will ask my agent to contact your realtor to schedule a
showing..."
Sometimes, the seller will grant you a courtesy to view the home, please notify
us right away. You can also try to contact the listing agent when you are not able
to reach us during your tour. You MUST check the home from the outside first to make sure you really like
that house and is ready to make an offer. Do NOT waste the listing agent's time. On the call you must be very clear that you
already have a buyer's agent.
"...Dear Ms/Mr ______ My name is ______. I am on an OPEN HOUSE tour
today without my agent, and I came across your listing at _________.
Is it still available? I have an exclusive buyer agent
but I am not able to reach him or his assistant now. I am wondering if you can show me the property if it is convenient to you. I have seen many homes in the
neighborhood, I am pre-approved, and I am ready to make an offer...".
Some agents will appreciate your loyalty and wiling to show it to you. However, if they are not willing to show it
to you, it 100% ok. Just ask them when is the next open house scheduled.
If NO OPEN HOUSES are scheduled, Do NOT worry, we will be able to show you the
home. See next question:
10. What if there's just NO way for me to get inside to see a particular house? Will I still get a Rebate?
YES! There is always a way to see the home, as long as it is available. If the
listing agent is not having any open houses, we will assign you a Realmart agent
to show you the home by appointment. You will drive by homes of interest to make
sure that the exterior of the home is appealing to you. When you are ready to
view the interior of a home, contact your assigned Realmart agent and he/she
will arrange the appointment. Operating this way eliminates time wasted by our
agents showing homes that are undesirable from the outside. Because you are
helping us work more efficiently, we can afford to reward your a portion of our
commission in the form of a rebate at closing. The rebate to our Buyer Client
varies depending on the number of homes physically visited by our agents (see
schedule below). The maximum rebate is 50% of our commission or 1.5% of sales
price (whichever is lower).
|
# Homes Visited With Realmart Agent:
|
Max % of our Commission we will rebate to our buyer:
(i.e: $500,000 Home, $15000 Buyer Comm)
|
|
3
|
50% ($7500 Rebate)
|
|
4
|
45% ($6750 Rebate)
|
|
5
|
40% ($6000 Rebate)
|
|
6 |
35% ($5250 Rebate)
|
|
7 |
30% ($4500 Rebate)
|
|
8 |
25% ($3750 Rebate)
|
|
9
|
20% ($3000 Rebate)
|
|
10
|
15% ($2250 Rebate)
|
|
11+
|
10% ($1500 Rebate)
|
The rebate program is not designed to punish buyers that view more homes. It is
designed to reward the buyers that take the time to do research prior to setting
up showing appointment. The more time buyers can help saving our agent's time, the more
rebate we can provide to buyers