Realtor rebate or what is more commonly know as a real estate agent rebate is a concept currently being used by real estate agents to woo many property buyers into buying properties being sold by them. This rebate actually comes on the part of the seller to the buyer. This means that if the real estate agent is charging 3% of the sale price as a commission, then he or she can give this back to the buyer as an incentive to get this back from them. This is in effect really just a transfer of cash from the realtor to the buyer. It has in the last year yielded great results especially for the larger real estate brokerages. In the past this was an unheard of practice as many realtors and real estate agents wanted higher commission rates and because of the recent crunch in the real estate market sales are on the decline, they are many properties for sale but very few buyers. This has led to a drop in price and a lot of ‘dry spells’ (long periods without the sale of a property) for real estate agents. Lots of information can be found in real estate magazines.

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The real trick of realtor rebates is get real estate buyers to list with them. This means that if a buyer wants property they contact the real estate agent or brokerage and these people in turn locate properties for them. Once the closing of the sale is completed and the realtor gets his/her commission, they give back up 75% of that commission back to the buyer. An actual example is explained below:

Sale Price of Property =$300,000 Commission = 6% Realty Rebate = 75%

300,000 x 6% = 18,000 x 75% = 13,500

The realtor will rebate to the client the total sum of $13,500.00

It’s a great incentive that creates added saving for many real estate buyers. However there are implications for all parties involved. The most important issue is that of taxation and if the recipient of a realtor rebate is to be listed as taxable income. The transaction really affects the income of the realtor and the buyer. The Internal Revenue Service has referred to income such as this for both parties.

In the case of the realtor or real estate agent, when reporting income must report the full revenue that they receive. However it will be net off in some other charge such as advertising that is placed on the books of the real estate agent. It is for this reason why over fifteen states in the US bar realtor rebate as it defies the logic of equity in property. Most people believe that a realtor should just bargain down the price of the property to the benefit of the purchaser.

In the case of the purchaser however, they must report that as income and it must be taxed as regular income. The concept continues to grow in popularity and soon will become standard as it begins to attract many purchasers to receive cash back from purchasing a property.

There are several methods to find the best real estate agent to sell your property. The most important one is picking the best real estate. This all depends on if you would like to sell your property quickly or if you want to sell your property in the long term for the best price. There are a few things to look for in real estate agents that will determine if he/she is the best real estate agent: Agent Should Work With A Brokerage: If an agent works with a real estate brokerage then it shows some level of stability and means that they are professional and can be contacted when necessary. Most real estate agents that act on their own are very difficult to contact and possibly to work with. They don’t have the benefit of a backend office that schedules visits and appointments.

Agent Should Have At Least Three to Five Years Experience: An inexperienced real estate agent will not be able to find the best market to sell your property in. He or she might have to go through a trial and error method. He does not know if your property is best suited and designed for retirees or for baby boomers and if this falls in the middle income bracket or in the higher end of the market. This inexperience might prove costly in terms of time and especially if property prices are devaluing.

How Many Clients Does The Agent Have: Normally the best real estate agent to sell your property would have a lot of clients. However this can be a serious problem, especially if your property proves very difficult to sell. If the property is hard to liquidate then the real estate agent might not be able to develop a strategy as he will be swamped with other clients work.

Agent Should Have Experience In Selling Properties In Your Area: If the agent has experience in selling property or real estate in your community then you stand a better chance in having your property sold quickly. Having found a workable strategy in selling properties such as yours the best real estate agent to sell your home is one that has sold a home like yours in the past.

Agent Should Have Mortgage Brokering Skills: This is very important as this opens doors to new markets. A real estate agent can use his mortgage broking skills to woo many prospective buyers into purchasing a property by offering them very cheap alternatives to finding financing to purchase a home. This is especially important if your property is being sold at a relatively higher price than market value.

Many individuals believe that the best real estate agent to sell property is the owner, meaning FSBO (for sale by owner) however just briefly reading over these key points that you realize that a realtor can mean the difference between a quick and profitable sale versus a long and financially frustrating property sale.

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A real estate agent is the most important player in the real estate market. The agent or realtor serves buyers, sellers, landlords, tenants, developers, appraisers, auctioneers and others. Let us briefly examine why use a real estate agent when you are a member of any of the following categories:

BUYERS – If you are interested in buying real estate, then you should contact a real estate agent, they will have the most properties at their disposal. Though some of the best deals are found FSBO (for sale by owner), some properties are not listed in the local newspapers or even online but strictly with a real estate agent. So if you want a large inventory to choose from that is why you need a real estate agent as a property buyer. Real estate agents also have quick links to mortgage brokers so using your agent to broker a good rate mortgage works out even better.

SELLERS – Vendors or sellers of real estate can attempt to list their property on their own but should use a real estate agent. Though at the end of the day using one will cost a whopping 5% of the sale price in commission fees, it will ensure three things, you price your house correctly, you sell your house quickly and you get the best price on the market. As with real estate buyers agents can marry your property to a mortgage broker, so sale can be completed and closed in less than 72 hours.

LANDLORDS – When renting any property you want to do so quickly and to the best candidate. As a landlord this can be difficult to screen every single person that want to rent your property. A real estate agent uses forms, background checks and references and does the hard work for you. The get the best candidate for the best price and can ensure some level of compatibility between landlords and tenant. They also provide legal protection. As a trained real estate agent knows the federal laws they can advise you on the legality of how to rent property in your state.

TENANTS – Primarily the service to locate a property to rent by calling an agent is free. This is of great benefit, without looking in a newspaper or even online, calling a real estate agent that is familiar with the property themselves can save you some valuable time in locating a new property to live in. They can give you intimate details on amenities and other issues that would be important to any renter. The inventory that’s open to you extends to not just one broker but hundreds as real estate agents co-broke many properties for rent and sale.

DEVELOPERS – As a real estate developer, you want the shortest downtime between completion and sale. This cannot be achieved without have at least 3 or 4 agents on hand to sell the properties very quickly. However real estate agents can secure deposits and even sell properties before construction even begins. Giving the developer some room to develop despite escalations and securing larger funding from financial institutions.

Realtors are not limited to sales person. Most states in the USA require sales persons to have the following courses under their belts – real estate principles, real estate practices, real estate appraisal, property management, real estate finance, real estate economics, legal aspects of real estate and mortgage loan brokering and lending. This leads to two types of agents, buyers and sellers agents. However this is truly why you use a real estate agent.

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