Home Buying in 07054>Question Details

Tessa, Other/Just Looking in Parsippany, NJ

I am interested in learning more about buyer rebates. I am renting in Parsippany and am considering buying a home in the next 6 months

Asked by Tessa, Parsippany, NJ Tue Dec 14, 2010

What is a buyer rebate? Is it available to me in Parsippany? Do all real estate places offer it?

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Answers

8
Great questions
1 a buyers rebate in NJ is when you the buyer agree to buy only through one particular agent and you sign a contract to that for that the your agent agrees to give you X amount of their commission. For example if you buy a home a home for $350,000 and the total commission is $7000 to the agents office, then you split that into 1/2 and he or she gets $3500 and then they give you $100 or $200 from that. It may not seem like a lot but the only way the agent gets paid is if he or she brings you to a successful closing. You could put your agent through 100 hours of work over 3 months and then have the sale fall through. Then the agent gets nothing? Are you willing to pay the agent for their time even though you did not buy a home?

2 Yes it is available to you any resident of NJ


3 I do not know of any main stream offices that offer it in the Parsippany area.
1 vote Thank Flag Link Tue Dec 14, 2010
Tessa,

As a buyer the real estae transaction will cost you the ormal fees associated with closing title. If you are working with a realtor they will be doing everything they can to get you the best house for what you can afford. Please understand that we work very hard to do this and that most of us get a percentage of the selling broker commission , as much as half for newer agents.

Personally I will not consent to give my hard erned money away. I spend enough time away from my family working diligently to find my clients a home. I can tell you I earn my money.
1 vote Thank Flag Link Tue Dec 14, 2010
There are many real estate professionals that offer broker rebates. One size no longer has to fit all! Keep researching until you find one that you like.

Good Luck!
1 vote Thank Flag Link Tue Dec 14, 2010
I think others have answered your question about WHAT a buyer rebate is, so I would like to address the question of whether it is a good idea or not. As many have noted, the top tier firms are not offering buyer rebates. While it might be tempting to shop around for an agency that does, I would suggest that you should consider whether the relatively small short term gain is worth the (often hidden) cost. Someone else noted that the agent for the smaller agency that might offer rebates may not be able to negotiate as low a price as a more experienced agent from a top tier firm. In addition, there are many other areas where an agent can help you, and in these areas as well the agent from the rebate firm may not be as able or have the incentive to go the extra mile. Will they be as willing to show you homes until you find the one that's right for you, or will they try to convince you to buy the first one you see that is in your price range? Will they have the experience to spot potential trouble areas before you make an offer? (No agent will replace a qualified inspector, but the inspector comes in only after you are under contract, and you have to pay for the inspection. If your agent alerts you to a potential problem, he or she can investigate it BEFORE you make an offer and without any additional cost to you.) A good agent does much, much more than just open the doors for you.
0 votes Thank Flag Link Thu Sep 13, 2012
The others are correct, your question can only be answered by the broker/owner of an agency. This is new to New Jersey, however, from what I have heard it can be a lot of 'smoke and mirrors'. What a buyer should really look for is an agent that can save them money on the transaction, and bring them a better overall value. I know some ways that you could potentially save a lot more money than you would get from a buyer rebate. Remember the old saying, "you get what you pay for". I would be happy to help you if you would like to give me a call and we can sit down and discuss the issue with my broker.

Suzanne MacDowell
EXIT Realty Gold Service
973-334-7500 X 108
201-602-4458 (cell)
0 votes Thank Flag Link Sun Jan 23, 2011
I would call a broker who is offering the rebate and start asking questions.
0 votes Thank Flag Link Thu Jan 6, 2011
A buyer rebate is a rebate that the selling brokers give back to the buyer after a real estate transaction. it can be a ratio base on sales price or a lump sum, it will consider as a income and be taxed. Not all the states legalize the buyers rebate. New Jersey just passed the law this year. However, "you always get what you pay for" and not many brokers in north jersey offer buyers rebate. If the broker strong and tall, they usually would not step in this area. Anyway, if you need any help, contact me, I may help you save more than this rebate money but still with outstanding service.
0 votes Thank Flag Link Tue Dec 14, 2010
Not all agents offer broker rebates, in life you so often get what you pay for, discount brokers or brokers who give back half their commission are working for less and have to offer less to stay in business. Not all states allow rebates from agents to buyers unless on the hud and approved by that buyers mortgage company. The most important thing is to ask what you get for what you pay.
0 votes Thank Flag Link Tue Dec 14, 2010
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