Buying a house is never easy, and there are several things to consider and make careful decisions. The most important thing to consider is the cost of the house as houses are probably the most expensive thing to buy, and most aspiring homebuyers have to rely on mortgage loans.
As a homebuyer, you have first to ensure that your financial situation is in order and then you have searched for a particular house that will suit you and your family needs. The financial considerations include the credit score, debt to income ratio, and monthly income of a person. If you have a busy life with office work and personal chores to do, then it is better to hire the services of a real estate agent who can help search the best house for you. The real estate agent, also known as a realtor, is familiar with all the steps and has the skill to negotiate on your behalf and allow the seller to agree on the price, which is within your financial range.
One another reason why it is essential to employ a realtor is that you will be eligible to get ‘home rebate’ which is also known as commission rebate and means that the realtor will use a portion of his commission from the seller to you. The home rebate is a very effective financial tool for saving money, which is very important when buying a home. The rebate amount can put money back into your pocket and help you to manage the expenses which are common when you decide to buy a new or resale house.
The home rebate is legal and allowed in 40 states of the country, including Nevada and can help you to buy a beautiful house in MacDonald Highlands, which a very developed and modern housing society. When the realtor of a homebuyer offers a rebate amount, it means that he is willing to give a certain percentage of the commission (mostly 2% or 3%) at the time of closing. The home rebate can help you in several ways which are
- Helping you with the down payment
- To lower the interest rate
- To buy points on the mortgage
- Help to pay the closing cost
- Cover the moving expenses;
- In some cases, you are also allowed to take cash
However, if you are using a mortgage lender to finance the purchase of the house, then that mortgage lender would first approve on how you will use the rebate amount given to you. The mortgage lenders mostly do not allow the homebuyers to take rebate amount as cash in closing. The home rebate can allow you to buy an expensive house and save money for the big down payment that you will have to make.
You can negotiate with the seller on your own, but it is quite challenging to get a reasonable rebate amount. The realtors, on the other hand, have their contacts and familiar in dealing with the sellers and getting the best price for the clients. It is advised that you should interview several realtors and chose the realtor who is capable and can negotiate with the seller. You should try to find the best realtor from the referral network who can pre-negotiate the home rebate on your behalf.
The home rebate or commission rebate is a very effective tool, particularly if there are multiple offers for a single house. You could offer a better price for a house due to the home rebate and buy the house. In a standard house sale, the seller of the house hires a listing agent and offers him 6% if he manages to sell the house. The listing agent then agrees to share half of the commission (6%) to the realtor employed by you. The realtor will then offer the rebate amount to you, which is usually 2% or 3%. The rebate amount depends on the realtor you select and number of houses you have viewed.
You need to interview and select an individual realtor and not go to large real estate companies as they usually share the commission rebate within itself and its agents. The real estate companies usually not allow their agents to share the rebate amount either with the seller or buyer. The individual realtor offers a very handsome amount as rebate as he does not have extra money as there are no transaction fees, no junk fees, low overheads, and no fees to pay to the mortgage brokers. The rebate amount can be used whether you want to buy a new or resale house, but the amount can also use for home improvements.
Mr. Richard Thompson has worked as a real estate agent for 10 years and now working for his own business. He helps people to buy new and resale houses. He mostly assists homebuyers who are looking to buy modern houses in MacDonald Highlands.