Frequently Asked Questions about New Construction Rebate/Commission Discount

Q: There’s no such thing as a “free lunch”…how are Rebates “FREE” money?

A: While the adage is true in most cases, it’s false with regard to Rebates, at or after closing. Rebates are indeed FREE money to the Buyer. Contrary to popular misconception that commissions are ultimately paid by the Buyer or that a Realtor’s compensation increases the cost of the Buyer’s home, commissions are truly and solely the expense of the Seller or Home Builder. The Builder/Seller basically allocates 6% of a home’s asking price as a sales (commissions) expense. Of the total commission, 3.3% goes to the agent that represents the Seller or Builder and the remaining 2.7% goes to the Buyer’s agent. If the Buyer goes into the Builder’s office without a Realtor, the Builder seizes the opportunity to collect the entire 6%!

Never go into a Builder’s office without enlisting us "Link Real Estate Services, Ltd., Mike Abdullah as your Realtor" don’t leave money on the table! It doesn’t cost you anything to do so…however, going at it alone could become quite an expensive lesson for you-the Buyer!

Q: I already registered with a new homebuilder. Can I still get a rebate through one of your real estate agents?

A:The short answer is you may have just made a $10,000 mistake. Then again, you may still be able to get the rebate. Here’s why:

A builder allows you to have an agent when you show up on your first visit. If you’ve already visited the builder, they are not legally bound to compensate a real state agent, since you’re already a potential client. However, sometimes a builder will allow you to hire an agent after the fact. Your first step should be to call the builder ASAP and ask them if you can have a real estate agent represent you. If the builder says yes, we will be happy to work with you. Cross your fingers, because if the builder doesn’t allow you to hire an agent, then you have to either a) buy that home without the rebate (ouch!) or b) pick another builder.

Q: I've already visited a Home Builder and decided on a particular home...am I still eligible for a Rebate from the Builder?

A: The answer depends on whether or not the Builder will permit you to add a Realtor to the purchase agreement (if one has indeed been executed or signed). Quite possibly, you may have to locate another Builder (walk away from the deal) or alternatively, forfeit the opportunity for a Rebate altogether, once an agreement is reached (you stick it out) Bummer!! If the Builder doesn't budge in letting you add a Realtor to the earnest money contract and you move forward with purchasing the Home, unfortunately, you will have just left money on the table and allowed the Builder to keep ALL of the commission on your new Home purchase.

Q: How can I possibly ensure that I will actually receive a Rebate from you?

A: If a Link Real Estate Services, Ltd., Realtor represents the Buyer on a purchase agreement with a Builder, the Buyer can rest assured that he or she will indeed receive a Rebate for their purchase. To ensure the fact, we will put the Buyer's Rebate in writing, before the purchase contract is executed (or signed) with the Builder.

Q: Do we work exclusively with certain Builders or can a Rebate be received from any Builder?

A: We are not affiliated with any particular Home Builder (i.e. Pulte, Lennar, etc.). Our sole responsibility and allegiance is to our Buyer.

Buyers are free to use any Builder to receive a Rebate!

NOTE: The Buyer must enlist a Realtor, prior to entering into agreement with the Builder or she/he could potentially forfeit the chance to receive a Rebate on an agreed upon Home purchase.

Q: How exactly does the Buyer receive a Rebate?

A: After the Buyer enlists a us as a Broker Realtor, decides on a specific Builder and enters into an agreement to purchase a new Home, the Rebate will show up as a credit on the Buyer’s HUD-1 (or settlement statement) at closing or in a form of check after 2 weeks after closing. In short, a Rebate will enable the Buyer to come to closing with less (or sometimes without) money out-of-pocket.

Q: Can I receive a Rebate on a pre-existing home, similar to a newly built home?

A: Definitely. we can also aid Buyers that need assistance locating pre-existing homes vs. newly built homes. However, buying a pre-existing home requires more work on the Realtor’s part (i.e. driving around, showing properties, negotiating the Buyer’s deal, etc.). Therefore, Rebates on pre-existing properties will be negotiated between the Buyer and Realtor on a case-by-case basis; nonetheless, the Realtor will still put the Rebate in writing prior to executing a purchase contract. Please read FAQ's for details.

Q: Why aren't Rebates given accross the board by all Realtors?

A: The subject of Rebates leaves a bad taste in the mouths of many Brokers and Realtors across the country.Rebates are basically gifts that the Buyer can use to reduce their out-of-pocket expenses; however, the Buyer's gain is often seen as a loss to the typical Realtor/Broker. Most agents earn their sole living based on the commission received from a real estate transaction. Oftentimes, the Realtor has to divvy their commission check with their sponsoring Broker. So, the misconception amongst many agents is that providing a Rebate is synonymous to leaving a hole in their pockets, which ultimately results in forgone income for them.

We don't adhere to this belief...we see a great opportunity in helping Home Buyers that are actually capable of doing a great deal of the upfront legwork. In fact, we owe it to ourselves to share the wealth, instead of hoarding it, when everyone indeed plays their respective parts during the real estate transaction!