How do Real Estate Commission Rebates Work?
Most folks have never heard of real estate commission rebates, but Miami home buyers can save thousands of dollars with this well-kept secret.
In the state of Florida, Realtors are allowed to contribute a portion of their commission to homebuyers upon closing of a transaction provided it has been disclosed in the contract. For over a decade, True Real Estate has been saving savvy Florida consumers hundreds of thousands of dollars by rebating up to 1.5% of the purchase price to home buyers. In other words, the buyer receives a credit from True Real Estate at closing for a sum equal to 1.5% of the purchase price of the property.
Real estate commissions are negotiable in Florida, but in many markets, the seller pays a commission to the listing brokerage equal to 6% of the sales price. Half of this, or 3%, is then paid to the brokerage who procures the buyer. Provided True Real Estate earns this 3% commission, 1.5% of the purchase price is rebated to the buyer upon closing of the transaction. The amount of the rebate varies with the actual commission to be paid to the real estate agent. Ask for details.
If you, a friend or family member is considering the purchase of a Miami condo, for example, and the anticipated sales price is $400,000, the rebate would equal $6000!
$400,000 x 1.5% = $6,000. It’s that simple.
Registration is required in order to qualify for Miami Buyer Rebates, If considering new home construction, do not register with developers or builders before registering with True Real Estate.
REGISTER HERE
Without Miami Buyer Rebates, offered by True Real Estate, many buyers would not have enough down payment or “out of pocket” money to buy their home. With the rebate, others can now afford a more expensive home. “Home buyer rebates can help pay for things like home inspections, surveys, appraisals and other costs associated with the purchase of a home”, says broker William True. Calculate Your Rebate
The United States Department of Justice, says “Real estate commission rebates make home buying less expensive. Rebates can save consumers several thousand dollars in a single transaction”. The DOJ even has a calculator on their website to help determine the amount of the rebate.
HOW DOES IT WORK?
It’s simple. The home seller pays the real estate brokerage who listed the property a negotiated commission. Then in turn, the listing brokerage offers a portion of this seller paid commission to the brokerage who procures and represents the buyer. The home buyer rebate is paid out of our commission.
The rebate is valid for properties over $200,000 and can be applied to the purchase of single family homes, condos, new home construction, vacant land and even investment property. It may be used for as many transactions as needed. At True Real Estate, buyer rebates are valid throughout the entire State of Florida.
If you think this sounds too good to be TRUE or even LEGAL, then check this out:
The Florida Real Estate Commission allows licensees to rebate a portion of their commission to consumers provided the rebate is disclosed to and approved by all parties of the transaction and is reflected on the settlement documents. The sharing of brokerage compensation by a licensee with a party to the real estate transaction with full disclosure to all interested parties is not considered a violation of Chapter 475, Part I, Florida Statutes.
The Internal Revenue Service deems real estate commission rebates TAX FREE because they are considered a reduction in the properties’ sales price, http://www.irs.gov/pub/irs-wd/0721013.pdf.
For more information call or text (305) 204-0168.