Even though offering rebates to buyers "doesn't seem to have revolutionized or turned the business upside down anywhere else across the country where it's been legal" don't you agree that it is nice to be able to offer a quantifiable valuable savings offer like this to buyers? If not why?
Playing down rebates won't make them go away, if anyone doesn't offer them that too is fine but whoa! I'm noticing a lot of hostility from fellow agents when talking positively about rebates and telling people that my agency is offering them. The backlash is just crazy but at the same time indefensible by those making the attacks, they just can't explain why it is bad without slandering those offering the rebates.
If anything, I think it's just good press for us! lol...
Anyway, this question wasn't about rebates so just think it was funny how that was injected into the answer.
@ Susan Coleman
As a buyer you don't need to take such factors into consideration because the real estate agents commission is paid for out of the sellers proceeds 99.999% of the time unless in a buyers agency agreement it is spelled out that you will pay an agent x% but in the case the amount the seller is offering doesn't cover that, you will. All you need to do as a buyer is figure out if you want the house and how much you're willing to pay for it.
I think you may be confusing to separate issues, you mentioned how much you would need to "put down" when buying a new house. Down payment has nothing to do with your agents commission, it has to do with the type of loan you are getting and your banks program offerings you are choosing to go with. I would suggest speaking with a qualified, reputable mortgage rep to get you qualified for a mortgage and go over all the programs available and best suited to you and your needs.
Sellers do pay the commission, see Bob Hope's comments.
As for those wanting to delve into semantics and the duck, bob and weave techniques of telling sellers who pays for the commission, the funds to purchase the house come from the buyer but then again those are funds they have no control over how the seller may choose to spend anyway because those are from their proceeds.
Unable to get a mortgage? As we all know, that list is growing every day with the increased credit score minimum and tight lending practices. Rather than focus completely on credit history for potential renters, consider other factors:
Do they have a good job history, did they have a major life change (divorce, lost a spouse, relocated to a more expensive area,etc.), what are their earning ratios compared to rental output?
Then you can make a better decision if they are a good tenant candidate. There are plenty of "good" people who either prefer to rent or just cannot obtain a mortgage right now.
Marilyn, you are so right about the "Truth in Renting" laws siding with the tenant. Amazing how banks can kick out an owner relatively quickly while tenants can occupy someone else's property many, many months for free.... more