Getting the cash back rebate is a simple process:
Cash Back Rebate Terms and Conditions
NEW AND RESALE HOME PURCHASES
20% of our Realtor commission
For example:
New Home Purchase of $250,000 - typically $2,000 cash back rebate
Resale Home Purchase of $250,000 - typically $1,500 cash back rebate
Cash back rebates are paid only to you, the buyer(s), at close of escrow for all new home properties purchased at a value greater than $150,000, or resale home properties purchased at a value greater than $200,000.
Cash back rebates are funded from the prevailing "co-op" commission rate that we are paid at closing by the Listing Agent/Seller that are traditionally paid to the buyer's broker/Realtor. In cases when our Realtor/broker commission is less than the prevailing rate, the rebate is adjusted accordingly and you are told upfront and in advance when and if this does occur.
Cash back rebates are paid at the closing of the purchased property and when the purchase contract is not contingent upon the sale of another property. The cash back rebate is provided as a credit to the buyer at closing, which allows the buyer to bring less cash to the table at closing. When there is a loan, it will be shown under "Amounts paid by or in behalf of the borrower" on the HUD-1 Settlement Statement.
Frequently Asked Questions
How do I receive my buyer's cash back rebate?
You receive your cash rebate at closing. The cash back rebate is paid directly to you, the buyer(s) of the property. In all cases, you may choose to have the money applied as a credit towards your closing costs, your pre-paid expenses, and/or your down payment. Your buyer's cash back rebate will be shown in the closing settlement sheets and on the HUD-1 documents. If you're using VA/FHA financing, the rebate must be applied in this way. If you're using conventional financing, consult with your lender.
Is the buyer's cash back rebate taxable income?
No, the rebate is simply a reduction on your taxable basis in the property you buy. There's no Form-1099 because the rebate is not income. It's the same as a rebate when you buy a car, or a cell phone, or a rebate you receive back on your credit card purchases.
Where does the buyer's cash back rebate money come from?
Your cash back rebate comes directly from the "co-op" commission we receive from the listing agent, seller, or builder. The money itself starts withyour money or the money you borrow to purchase your home. You pay the seller, the seller pays the listing agent, the listing agent pays the "co-op" commission to me, the buyer's agent, and I refund some of your money back to you. That's why this is a rebate -- its a refund back to you!
Do I have to use a certain lender in order to get the buyer's cash back rebate? Of course not! Please use the lender of your choice. And we encourage you to shop and compare programs and rates. Get several Good Faith Estimates -- in writing!
Can I make an offer to buy a home contingent upon the sale of my existing home and get the buyer's cash back rebate?
If your existing home is already under contract to close in the near future, yes, in most cases.
Can I use any real estate agent and still get the buyer's cash back rebate?
No, you receive our buyer's cash back rebate only when we represent you as your Realtor®.
Can I get the buyer's cash back rebate if I buy a brand new home, even one built from the ground up?
Yes, but please be absolutely sure to have us accompany your first visit to model homes so that we may sign up as your Realtor®.
Another agent showed me the home I want to buy. Can I buy it through you to get the buyer's cash back rebate?
No, this is not possible.
Can I get the buyer's cash back rebate on a FSBO (For Sale by Owner)?And, can I get the rebate on a foreclosed property?
FSBO's are ineligible. Some foreclosures are eligible, but not properties which require bidding.
Can I get the buyer's cash back rebate on homes I saw advertised elsewhere, or ones that I saw driving by?
Yes, be sure to ask us to set up the showing(s) so that we can represent you as your Realtor®.
Should I get a lender's pre-qualification letter before looking at properties?
Yes, before requesting showings, please talk with a lender to get pre-qualified. You'll need a lender’s pre-qualification letter to present with your offer, so its in your best interests to be prepared! Plus, its a good idea to know in advance how much mortgage you qualify for, and what the monthly payments will be including principal, interest, taxes, and insurance.