Are you well informed about a buyer agent commission rebate? All the parties involved in a real estate transaction from the buyer, seller to the agents of both sides have to be careful with the buyer agent commission rebate to protect themselves from messing up because they will all be affected. Here are essential things you should know about buyer closing credit commission.
Other people know a buyer agent commission as a home buyer rebate, buyer closing credit, realtor rebate, buyer rebate, home buyer cash back, a commission kickback, etc. The buyer and his or her agent agree on how they will share the commission of the agent after the transaction.
The seller is obligated to pay the buyer’s agent a fee indirectly. The buyer’s agent agrees on a percentage that he or she will be given from the commission that the listing agent earns from the seller. The listing agent can keep the whole amount if the buyer has no agent, which rarely happens, and act as both a listing and buyer’s agent.
Buyer rebates are legal and illegal in the US depending on the states. As a realtor or real estate company, carry out research before you use buyer rebates to attract customers in any state in the US so that you do not rub shoulders with the law.
The challenges that buyer rebates expose traditional realtors have made them adamant to accept the change. The realtor will have to remain as either a listing or buyer’s agent but the latter is the most disadvantaged. A buyer’s agent may not get his or her share from the commission that the seller will give to the listing agent if the listing agent is a selfish person.
Buyer commission rebates are rare because of the existence of the real estate brokerage. There should be cooperation between the agents of the buyer and seller for the deal to be successful hence dual agency is created. The majority of the buyers are represented by their agents and a significant percentage of homes are listed before they are sold. Traditional agents are not cooperative because they refuse to work with rebate realtors.
Traditional agents can negotiate with listing agent for a reduction on the contract price after the offer has been accepted so that the buyer’s agent gets a commission rebate before the deal is closed. The contract price can be reduced by the rebate amount and the same will be done on the buyer agent’s commission if you ask your lawyer to come into an agreement with the lawyer of the seller. It does not matter if you have already signed the contract because your lawyer can get the rebate to be applied to you as credit by negotiating with the agent of the seller.