Purchasing a house rather than renting it has never gotten out of fashion. Just in May 2022, statistics showed that 30% of all house buyers were first-time homeowners.
Deciding to buy real estate is a big move and investment – that is why real estate companies are constantly finding new ways to make purchasing easier.
One way to reduce buying costs is through commission rebates. Further information on this topic can come in handy if you explore the real estate market.
What are Commissions and Rebates?
Real estate agents earn money by commissions. They don’t get paid by the hour, nor do they receive a fixed monthly wage. They make their livelihood through a fixed percentage on every real estate property they sell.
The real estate market is a rough one since buying a house is not an everyday activity but a one-time deal for many. But as prices have increased, it’s become burdensome for many individuals to purchase a home.
Real estate agents have devised a solution that makes buying a house easier for the customer. Sharing the commission – or rather a rebate on the commission – gets customers to return a certain amount of the money they invested.
How Do Commission Rebates Work?
A real estate agent generally gets 2-3% of the real estate value. To ensure that they will be the agent you purchase your house from, they offer you a percentage of the commission they earn as a rebate (1%, for example).
A few factors are essential in how much commission rebate you can get. Real estate agents get their percentage according to their background. Therefore, an experienced real estate agent will earn a higher commission percentage – affecting the rebate you will get as well.
How Do I Negotiate a Commission Rebate?
Not all real estate agents will offer a commission rebate. But, as long as you are sure that you want to work with a certain agent, there are a few things you can do to get yourself a commission rebate.
Firstly, always look into your real estate agent’s background. Checking the following will ease the process for you:
- Agent’s reviews
- Agent’s license
- Their past closed deals
- Their past flexibility with clients
- Their working background
After making sure you are working with the right agent, negotiating is the next step. If the agent refuses to offer a commission rebate, never be scared to walk away.
Real estate agents care for their customers, so if they want to work with you – they will negotiate with you.
How Much Will the Commission Rebate Save Me?
In the Seattle area, per se, it could save you thousands. The average percentage real estate agents get in Seattle is 2%. Most likely, that would get you a 1% rebate.
Considering an approximate house cost of $250,000, you will be looking at $2,500 in commission rebate, which is a good deal to have with your agent.
Blue Pacific Real Estate: An Agency You Can Rely On
When purchasing a property, working with a reliable agency that will provide you with impeccable service is a must. Blue Pacific Real Estate offers competitive benefits and transparency with commission rates with our clients. We go above and beyond for our clients, and their satisfaction comes before anything else.
Contact us today, and we will guide you to an optimal real estate experience.