Why the Justice Department Pushes to Legalize Real Estate Commission Rebates


REal Estate RebatesReal estate rebates put money back into the home buyers who are in desperate need of that cash to begin with. It might surprise you to know that not all states look at real estate rebates as a good thing, keeping that money from the buyers and sticking in back into the pockets of the real estate agencies who are trying to make buying easier in any type market. Now that the Justice Department pushes to legalize real estate commission rebates, it shouldn’t be long before everyone across the country gets to reap these wonderful cash rewards.

How Does the Cash Rebate Work?
The way that the real estate rebate works is quite simple in principle. The real estate agents get paid a commission from the seller of the house, and that commission is usually a percentage of the sale price. The real estate agent takes a small percentage of their pay, and they simply pass it on to the home buyer in the way of a rebate. The money is usually provided to the home buyer at closing, and can be used to purchase anything the buyer needs to help make the transition to their new home easier.

Who Can Qualify for the Cash Rebate?
If you are buying a new home, then you qualify for the real estate rebate. The rebate is offered by the real estate agent at their discretion, so all you have to do is to make sure that the agent that you are working with offers the rebates before you sign any paperwork with them. If they do offer the rebate, they will tell you the percentage of the rebate and how they can pay you at closing. In some cases the rebate can be in the form of services like inspections, landscaping, or repair work.

How Much of a Rebate Can I Expect?
The rebate that you will receive at closing is usually set by the agent. In most cases, if you were closing on a house that was $300,000, you might expect to get cash at closing equaling $3,000. That money can go a long way, especially since most buyers walk out of closing penniless after paying all those closing fees. The real estate rebate can be a huge relief for buyers in any type market.

So now you see why the Justice Department pushes to legalize real estate commission rebates. It really is a win-win situation for all parties involved. The seller moves their house faster, the realtor gets a new client, and the buyer walks away with cash.