At Lowes Flat Fee Realty we specialize in saving home sellers and buyers money, we look for win-win situations.
For buyers the way we do that is with our Buyer Rebates!
For example, if you purchase a home for $350,000, and the commission rate is 3%. We will rebate back to you at closing, or immediately following, a cash rebate for $5,250!
You can use it to buy furniture, pay off debt, or with lender approval use it right at closing for closing costs or a down payment, it’s your choice. If your purchase amount is larger, then, of course, your rebate is larger. Say your purchase is $950,000, and the buyer’s agent’s commission is 3%, then your rebate is $14,250.
It is important to remember that commission rates are not standard, not set by law and are negotiable. In Idaho, 3% is what is most often seen, but we also often see 2.5%, along with 2% and lower occasionally. Your rebate amount would be based on the actual amount received by Lowes Flat Fee Realty as a result of your purchase.
Sounds great doesn’t it?
HOME BUYER REBATES: HOW DO THEY WORK?
Here in Idaho we have long offered a buyer rebate program, this is where we rebate back to our home buyers a portion, normally 1/2, of any commission we received as a result of them purchasing a home through us.
Due to a recent class action settlement agreed to by the National Association of Realtors, the way we do business has changed a bit; in the past sellers generally agreed to pay a certain commission to their listing agent and that agent offered to share a portion of that commission to an a agent that brought a buyer, and that was advertised in the Multiple Listing System operated by local Realtor associations. The settlement prohibited mentioning the amount of commission in the MLS. We wondered how it would affect our ability to offer rebates, what we have found that most agencies are continuing doing business the way they have always done, with sellers agreeing to a certain percentage of the sale as commission and then a portion of that be offered to buyer agents, just not mentioned in the MLS.
In addition, Realtors representing buyers are required to sign an agreement with buyers prior to showing them properties, and this will include what amount of commission the buyer’s agent will be receiving upon a successful transaction. The Realtor is limited to receiving no more than the amount agreed to by the buyer.
So how do we save the most money for you, the home buyer? Continuing with our rebate plan is still the most viable option. Representing you, we ask the seller for a percentage of the sale in your offer, as most sellers have already agreed, and of that amount we rebate 1/2 of that to you!
In order for us to receive that commission offered to a buyer’s agent, that we will be able to share it with you, we must be your buyer’s agent. To establish a buyer’s agent relationship in Idaho, by state regulation, requires that it be in writing. So, we will need you contact us to sign that agreement, which also guarantees you your buyer rebate! Also, sometimes if there becomes a dispute regarding which agent is owed that commission, procuring cause may be looked at. Procuring cause is what agent is responsible for the buyer buying the property. What this means is, that when you begin looking for your new house or other property, it is important that you have an agent relationship established with us, AND you inform any listing agents that you come in contact with, of that relationship.