The simple truth is that you would think that something that would benefit so many people in a turbulent industry would be welcomed by state officials. Real estate rebates in fact help to make the home buying process easier for buyers, faster sales for realtors, and even the industry as a whole enjoys the movement of inventory. Some states however have banned this practice and all its benefits, but today, the justice department pushes to legalize real estate commission rebates.
Why Legalize Real Estate Rebates?
The list of reasons for certain states to legalize real estate rebates is numerous. For one thing, many buyers put themselves in a position at closing to walk out with nothing because of all the costs involved. Receiving cash from the real estate agent in the form of a commission can go a long way to pay for many expenses that first month in the new house. Things like moving costs, utility deposits, food, repairs, and even furnishings, add up very quickly when you have no money that first month.
The Fight to Allow Everyone Rebates
The real estate rebate in fact benefits both the realtor and the real estate industry as a whole. When the market is stalled, everyone involved loses each day. When the realtor is allowed to offer a percentage of their commission to the home buyer in return for securing their services, two things happen. The realtor works even harder to make the deals because they are making less money, and that inventory starts moving and process begin to climb. This is a win-win for a stalled market and also for homeowners who can sell at higher prices as the inventory begins to get snatched up.
The Rebates are More Than Cash
The real estate rebate is more than just cash offered at closing, the realtors can be quite creative in finding ways to help buyers get through the long and difficult buying process. Some realtors decide rather than offer cash at closing, they will pay for some of the expenditures that start piling up for the new buyer during the process. Things like radon testing and home inspections are costly, just a few examples of services the realtor can pay for in exchange for doing business with the new client.
As the justice department pushes to legalize real estate commission rebates, hopefully this time next year everyone in the country will be able to enjoy the numerous benefits of this realtor practice.