| Buyer rebates, as they are called, are one of the | | | | help you tour neighborhoods and evaluate all of your |
| hottest trends in today's marketplace. Although they | | | | options? Do you intend to buy property in the |
| have been around for some time, there is a growing | | | | short-term or are you just trying to test the waters? |
| awareness of them as some firms are now dedicating | | | | Third, assess your comfort level in regard to showings. |
| their practice to them. In fact, there are at least a few | | | | All buyer rebate companies do this differently, so you'll |
| companies out there with a significant regional footprint | | | | want to have a discussion with them; but most of us |
| that are looking to go national. And why not? | | | | have systems in place to save us time so that we |
| Everyone would want to do this, right? If you're a | | | | can pass along the savings to you. If you're the type to |
| buyer, it's free money, isn't it? Not quite. Let's take a | | | | like to see a couple dozen homes with your agent at |
| look. | | | | your side, you'll definitely want to have this discussion |
| A buyer rebate is essentially an act whereby a broker | | | | early on. |
| shares part of their commission with the buyer in | | | | You should be able to count on a buyer rebate firm to |
| exchange for the buyer saving the broker time. Where | | | | handle the offer and closing processes in the same |
| is there time to be saved these days? The Internet, of | | | | professional manner as a traditional full-service broker. |
| course. Now that there is online access to so much | | | | Although some traditional agents are trying to defend |
| information, including that which was previously limited | | | | "their territory" by positioning buyer rebates as a get |
| to members only (e.g. MLS), self-directed buyers have | | | | what you pay for proposition, the truth is buyer |
| an opportunity to take a much more active role in the | | | | rebates are not some sort of discount-buyer rebaters |
| search process. In fact, many of today's consumers | | | | are earning less, for doing less. It's that simple. In fact, |
| much prefer to take on that active role...potentially | | | | you may find yourself exceptionally happy with the |
| freeing themselves of nagging agents looking to up-sell | | | | transactional services of a buyer rebate company, |
| them at every turn. | | | | because that is what they tend to specialize in. |
| I recently told an out-of-state college friend that I | | | | If you are determined to pursue a buyer rebate, what |
| specialize in buyer rebates, and he said, "Interesting, I | | | | should you do? |
| never thought of that." Now I know this guy, like most | | | | First, check if they are legal in your state. Less than a |
| of us, looks to save a few bucks on just about | | | | dozen states prohibit them, and that number should be |
| everything he can, so I replied, " You should have. | | | | shrinking thanks to the support of the Department of |
| Buying a house is probably the biggest purchase you'll | | | | Justice, which has declared that 'rebates make buying |
| ever make, and we're talking thousands of dollars in | | | | a home less expensive.' They provide more |
| commissions at play!" In hopes of making him feel | | | | information at |
| better, I explained that it wasn't free money or some | | | | Second, search for buyer rebaters in your state. Get a |
| sort of shady discount. I told him that he would have | | | | comfort level with their particular approach, and |
| had to put some serious effort into finding his own | | | | confirm the amount of the rebate they intend to |
| home. His response: "I always do that anyway. And | | | | provide-you'll find a range of options in a competitive |
| come to think of it, I'm sick of printing off listings for my | | | | marketplace. |
| agent to drive me to, only to have her nag me about | | | | Third, make sure you get the specifics of the services |
| what I think, and then collect a huge commission | | | | the buyer rebater will provide and those that they will |
| check!" Perhaps my friend had a bad experience with | | | | not. Most states require some version of this anyway, |
| this agent...there are certainly many excellent traditional | | | | but it's worth clarifying in writing. |
| full-service agents out there; but it underscores the | | | | Finally, be wary of any company that proposes a |
| point: not everyone needs, let alone desires, the | | | | buyer rebate to you only if you sell another home with |
| traditional full-service model. | | | | them. With the industry becoming more and more |
| So how do you know what's right for you, and if you | | | | unbundled, I always tell people that while they may find |
| should pursue a buyer rebate? | | | | a great one-stop shop, it often pays to consider your |
| First, assess your skills and experience. Are you | | | | sell-side needs and your buy-side needs separately. |
| comfortable working online to screen properties or do | | | | In summary, seeking part of the commission through a |
| you demand a hard copy presented in a face-to-face | | | | buyer rebate firm can be a fantastic opportunity-as |
| meeting? Can you work independently or do you need | | | | long as you are prepared to roll up your sleeves just a |
| someone to keep a fire lit under you? Are you familiar | | | | bit. We've all heard that there is no such thing as a |
| with the home buying process or would you prefer | | | | free lunch...and while shopping for property, there's |
| guidance at every step? | | | | nothing wrong with reminding yourself that that lunch is |
| Second, assess your needs. Do you have a good idea | | | | cheaper if you make it yourself. |
| of what you're looking or do you need someone to | | | | |