New Home Buyer Rebate (FAQ’s)
- What is a home rebate and how does it work?
- Which states does your organization offer services in?
- Can I buy a second home or an investment property with a home rebate?
- How and when will I receive my rebate?
- Do I have to sign an agreement to work with Rebate Properties?
- Is there a minimum sales price to receive the rebate?
- I’m already working with a buyer’s agent, but I want to work with Rebate Properties?
- I already visited a community and started working with the builders salesperson. Can I still receive the rebate?
- Can we visit new home communities on our own without a Rebate Properties agent?
- Is this a government program?
- Is it legal to receive a rebate from a real estate agent?
- Are there any fees or costs charged by the agent to receive the rebate?
Q: What is a home rebate and how does it work?
A: A home rebate is money gifted back to the client (be it buyer or seller), which is deducted from the real estate agent’s traditional commission.
Our clients receive home rebates at closing, as cash back (credit) towards qualified expenses for our smart buyers or by reducing traditional sales expenses for our savvy sellers, which saves our clients thousands of dollars of their hard-earned money! At Rebate Properties, we truly believe “Sharing a Realtor’s Commission is Caring!”
Q: Which states does your organization offer services in?
A: Rebate Properties is licensed to provide new home rebates in Georgia or Texas. We also have referral partners in other states that are willing to offer new home rebates. Please call us to discuss at 1-877-RBATES-1 or 1-877-722-8371.
Q: Can I buy a second home or an investment property with a home rebate?
A: Yes, the rebate is offered on any new home for sale in either Georgia or Texas where a 3% commission is offered to a buyer’s agent.
Q: How and when will I receive my rebate?
A: Your new home rebate will appear as a credit on your settlement statement at closing. Guidance on rebates in Georgia can be found here. In Texas, rebates are used towards a buyers closing costs, prepaid items, or other allowable expenses, per the buyer’s lender.
As per the Real Estate Settlement Procedures Act (RESPA) guidance, rebates should be disclosed to all parties on the HUD-1 closing document in lines 204-209 (the left-hand column under the heading “Amounts Paid by or on Behalf of Borrower”). In Texas, a credit at closing is as good as cash because it directly reduces the amount of money you have to bring and/or borrow to fund your closing.
There are many unavoidable closing costs and prepayments for buyers that your rebate can be used to cover. Some of these expenses could include: title insurance, loan origination fees, prepaid hazard insurance, prepaid property taxes, reimbursements of HOA annual fees prepaid by the seller for the remainder of the year, etc. These buyer’s closing costs generally add up to about 2.5% of the purchase price, so your rebate will be just enough to cover most of these!
Q: Do I have to sign an agreement to work with Rebate Properties?
A: Yes. Buyer’s Representation agreements are required. Agents are required by state law to establish agency prior to representing clients. Additionally, a representation agreement must be secured by our organization in order for Rebate Properties to provide our clients with a home rebate. If a client decides that they do not wish to work with Rebate Properties for any reason, they can simply provide notice to cancel its agency relationship, prior to entering into a purchase and sale agreement with a new home builder in which Rebate Properties has been listed as the buyer’s agent. Otherwise, there are no hidden charges or fees to terminate representation.
Q: Is there a minimum sales price to receive the rebate?
A: Yes. We do require a minimum sale price of $300,000 with at least a 3% commission paid to offer a rebate.
Q: I’m already working with a buyer’s agent, but I want to work with Rebate Properties?
A: If you’re already working with an agent and you signed a Buyer’s Representation Agreement, Rebate Properties cannot provide representation or a rebate. However, if you can provide Rebate Properties with documentation showing that the agreement was cancelled, then we can then potentially represent you.
Q: I already visited a community and started working with the builder’s salesperson. Can I still receive the rebate?
A: Maybe, depending on how far along in the sales process you are and whether the builder required that you register your real estate agent on your first visit. To ensure that you receive a new home buyer rebate, engage Rebate Properties prior to your initial visit. Call us to discuss your situation at 1-877-RBATES-1 or 1-877-722-8371.
Q: Can we visit new home communities on our own without a Rebate Properties agent?
A: Yes, but you’ll need to notify the builder’s agent that you are working with a Rebate Properties agent before or during your first visit. DO NOT enter into an agreement with the builder without engaging Rebate Properties first. Otherwise, you might forfeit the opportunity to receive a rebate altogether. It is highly encouraged that you contact us prior to your visit with a builder.
Q: Is this a government program?
A: No. New home rebates are provided by Rebate Properties and are deducted from commissions paid by the new home builder to our organization. Buyers and/or sellers are eligible to receive rebates provided that they comply with the terms and conditions set forth by the brokerage agreement and state law.
Q: Is it legal to receive a rebate from a real estate agent?
A: Yes! Home rebates are allowed in 42 states and Washington, D.C.
Q: Are there any fees or costs charged by the agent to receive the rebate?
A: There are absolutely no fees charged. Any other questions, contact us.