Home Buyer's rebate is an agreed-upon incentive mechanism that allows Buyer to receive an easy cash payment from her Agent after the sale is closed. Home Buyer may only receive a rebate when working with their own licensed Real Estate Agency. Home Buyer will never receive a rebate from the Seller's Agency.
Home Buyer's rebate is an effective competition tool available to Real Estate Agencies that provide an incentive for Buyer to select said Agency and not some other. Offering rebates are one of the most effective tools for a Real Estate Agent to expand its market share.
Home Buyer with a rebate agreement has an undisputed financial advantage compared to the exact same hypothetical Buyer who has no rebate agreement.
Home Buyer is not allowed to do any work in exchange for receiving a rebate, no matter how insignificant. It is unlawful for Real Estate Agency to exchange any work done by the Buyer for a rebate, quid pro quo. Real Estate Agency may and often does propose some cost-saving measures to the Buyer, but the Buyer cannot and should not be expected to complete any of the work in exchange for a rebate.
It is difficult to estimate an exact rebate amount for home Buyer due to variables such as Seller's terms with listing agency and final sale price. This is why Buyer's Agencies compete for rebates based on the percentage of their commission. All estimates provided by HomeOpenly are based on assumed 6% even split commission between Seller's and Buyer's Agencies. HomeOpenly only advertises rebates, to receive a rebate check Home Buyer needs to enter into a direct agreement with a Real Estate Agent and agree on the terms before searching for a home.
Home Buyer's rebate, by default, lowers cost of home-ownership and makes it cheaper to buy a home. The highest and best offer always wins and having a referral-free rebate agreement always lowers the final tally.
There are zero disadvantages entering into a rebate agreement with a fully qualified, licensed and motivated Real Estate Agent. Only Real Estate Agency that offers a rebate is financially competing for home Buyer's representation.
Home Buyer's rebate must be approved by the lender and disclosed to all parties. Technically, mortgage lender fronts home Buyer cash from the full mortgage sum when the Buyer receives a rebate, so they need to know.
Receiving a rebate is always a good idea, but finding a good balance, working with qualified and motivated Agency should always be the home Buyer's priority. For some 10% rebate from a local Agent is better than 50% rebate from an Internet broker; for others, the rebate amount may govern. HomeOpenly is here to help Buyers search and decide for themselves based on available local information from a number of Agencies. We do not pretend to know what is best, our service is to provide a fair and effective Internet platform.
Brokers don't have to disclose referral fee agreements they make with other brokers. Whenever Buyer does Agency search through middle-man service or broker, they end up paying a referral fee from final sale - often undisclosed, anywhere 25-50% of Agent's total fee. The Agent is often locked into this fee for several years. Obviously, such terms are detrimental to the Homebuyer and the Agent they are working with. HomeOpenly always operates under 0% referral fee. This also means HomeOpenly never cuts itself into Buyer's agreement with their Agent. HomeOpenly is an Internet platform designed revolutionize the way consumers and Agencies effectively meet and benefit from an OPEN competitive commission marketplace.