May 22 ē 05:03 AM

1% home buyer rebates explained

June 27, 2007

I would like more information about your buyer rebate program. Is the rebate taxable? Do I have to pay you anything? How do I qualify? Also, you are the only company that I have seen that offers a buyer rebate in our area. Why aren't more agents doing this?

— D.N., Capac

D.N., Great question as it seems many consumers think that there is some catch to it. There is absolutely no catch. Every home for sale comes with a rebate whether it is our listing or another company's listing. There are two things that you as a buyer must do to get our 1% rebate. 1. You must buy a home. 2. You must use a RealtyVolution agent as your Realtor. It is that simple. All home buyers do #1 anyways as they all buy a home. So really all you have to do is just make sure your agent is a RealtyVolution Realtor and you'll get your rebate. Your rebate is based on the value of the home you buy but is never less than $1,000. We've given away over $50,000 as cash rebates to our buyers. Our highest rebate so far was $3,830 which went to a buyer who purchased a home for $383,000. A lot of buyers think the rebate is only available on our listings. The fact is the rebate is available on every home for sale, even other company's listings. We give the 1% rebate because we are a full service discount real estate company. Since many brokers offer us 3% (half of a 6% listing) when we sell their listings we just keep 2% as our fee and give you the other 1%. It is legal and usually completely tax free. We do not charge you for our buyer representation service either. Use our agents to buy a home and you'll get the best buyer representation out there with no fee to you. In fact we pay you 1% of your purchase price!

I cannot speak to why more agents are not doing this. They have to make their own independent business decision on what they feel is best for their business. However, I believe 6% commission rates and not offering buyer rebates is outdated and overpriced for the new internet economy. This is why I started RealtyVolution, based on lower commission rates and buyer rebates. The internet has made marketing and selling homes much more efficient and less costly. We have lowered our fees accordingly as our highest commission rate is only 4.5% and we always give our buyers cash back. Spread the word about our company and you'll save your friends and family thousand of dollars.

Alex Lengemann is a licensed Real Estate Broker who operates, a local real estate company. You can Ask Alex your real estate or mortgage questions by phone 810-664-1819 or by email


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