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Added for You - How Home Buyer Rebates Work
Many practitioners of business opportunities, which sell small business models to consumers, are excited to see that they will soon have a separate category of law, rules and regulations at the Federal Trade Commission. Most all Franchisors, those who sell franchises are also ecstatic over the move and say it is about time.Here is an excerpt from the Federal Trade Commission’s report of all the commenters on this proposed rule change and separation of the two business models;“Based upon its enforcement experience and the record developed to date, the Commission has determined to promulgate a separate trade regulation rule to address widespread fraud in the sale of business opportunities. This approach is consistent with the view of the vast majority of commenters and
- Rebates won’t be available on many homes, including sale-by-owner homes and some homes sold by discount brokers. That’s because in these cases, the traditional commission percentage and split – from which the rebate is derived – doesn’t apply. Some real estate companies don’t offer buyer-agent commissions, and owners selling their own homes probably are doing so to avoid commissions.
Finally, check to see if rebates are legal in your state. Money Magazine’s 2005 Real Estate Guide reported that rebates were banned in Alaska, New Jersey, Kansas, Oklahoma, Rhode Island, Louisiana, South Carolina, Mississippi, West Virginia and Missouri. Rebates were reported as restricted to credits at closing in Alabama, South Dakota, Oregon and Tennessee. If rebates aren’t available in your state, you might ask your buyer agent what incentives are available. After all, for being a smart buyer in today’s challenging real estate market, you deserve so
A personal loan is a big commitment for your financial future, one that you'll be living with for years. If you choose the wrong loan package, then the effects will be felt for the full length of the loan term, so it's obvious that you need to take care when deciding which loan to apply for, and from which lender.It's also obvious that getting the cheapest loan possible should be a priority, but how can you properly compare the costs of loans? The first factor that most people look at when determining how expensive a loan or other form of credit is is the APR, or Annual Percentage Rate. This is the interest rate that will be charged on a loan, and the higher the figure, the more expensive the loan.Although the APR figure is intended to give an accurate picture of the
Buyer rebates are loved by consumers, at least those who know about them, because they can make getting into a home more affordable. More and more so-called non-traditional real estate companies ¬– those offering alternatives to full-service, full-commission brokers – are offering to share their paydays with buyers. At the same time, many traditional brokers around the nation are trying to block rebates because they threaten fat margins with price competition in the form of commission discounts.
Since buyers pay the lion’s share of closing costs in addition to down payments, many are interested in receiving rebates to ease the cash crunch of moving into a new home. This can be a real advantage for buyers who have a solid income and credit history, but little cash up front.
In this case, the term “rebate” is little confusing because home buyers are not getting a portion of their cash outlay back. The buyer representative (agent, broker or both) is rebating a portion of his or her commission back to the buyer.
The rebate process seems confusing to some buyers because it runs counter to the common belief that home buyers don’t pay real estate commissions. In fact, commission costs are passed on to buyers as part of the home’s sales price. Buyer-agents typically are paid half the standard 5-6 percent of sales price commission. That money doesn’t come from thin air…chances are that the sellers have factored commission into their price. When traditional listing agents tell sellers not to stress over commissions, because they can recover the costs through a higher sales price, someone is paying the freight.
So how do home buyer rebates work, and what’s in it for you?
- In traditional real estate transactions, buyer representatives and seller representatives typically share commissions of 5 to 6 percent. Selling brokers usually offer half this commission to a broker who brings them a buyer. As an incentive to drum up business, some brokers now offer to rebate a portion of their buyer-representative commission to home buyers. For example, suppose you buy a $400,000 home on which the seller pays a six percent commission. The buyer and seller representatives split the $24,000 commission evenly. In this case, a one percent rebate means that the buyer representative receives $12,000 from which they pocket $8,000 and “rebate” $4,000 back to the buyer.
- Buyer rebates generally depend on the home’s sales price, total amount of commission and the commission split. Some rebates may be advertised as a percentage of the buyer-representatives commission. In the example above, the rebate is $4,000, or about 33 percent of the $12,000 buyer-side commission. Other companies offer fixed-amount buyer rebates, such as $1,000 in cash or a $1,000 gift certificate.
Homebuyer rebates: To ban or not to ban?
At the same time consumers are looking to rebates to help relieve the high cost of home buying, traditional real estate brokers are trying – and succeeding in some cases – to prevent their use. Broker lobbying groups around the nation, concerned about price competition and downward pressure on commissions, have successfully lobbied lawmakers in 10 states to make home buyer rebates illegal. Four more states limit home buyer rebates to credits at closing. Fortunately for Florida buyers enduring record-setting home prices, rebates remain legal in the Sunshine State.
Industry watchers recently have looked to the state of Kentucky to see where the rebate debate might lead. In March, the U.S. Department of Justice sued that state’s Real Estate Commission, alleging that its rebate ban violated antitrust laws. The DOJ investigation alleged that Kentucky’s rebate ban may cost consumers “several thousand dollars” extra for each real estate transaction. In July, rebate fans received a victory when the DOJ and the Kentucky Real Estate Commission reached an agreement permitting rebates in that state.
If you’re shopping for a rebate, get the facts:
Some points to keep in mind if you are a home buyer looking to take advantage of rebates:
- Shop around. Some rebate programs included other buyer services, such as contract preparation or review, or escrow services. Even in a sellers’ market, buyers have some leverage. After you have established the rebate amount, ask what else is in the package to help simplify your purchase and control transaction costs.
- Consider your tax picture. Getting a rebate in the form of funds applied to closing can be double-win because that money may go untaxed when applied to closing costs. If the rebate or a portion of the rebate is not available until after closing, it may need to be reported as taxable income. Of course, this isn’t an issue if you have plans for your rebate other than closing costs. Be sure to consult your tax advisor for this and other tax consequences of home buying.
- Rebates won’t be available on many homes, including sale-by-owner homes and some homes sold by discount brokers. That’s because in these cases, the traditional commission percentage and split – from which the rebate is derived – doesn’t apply. Some real estate companies don’t offer buyer-agent commissions, and owners selling their own homes probably are doing so to avoid commissions.
Finally, check to see if rebates are legal in your state. Money Magazine’s 2005 Real Estate Guide reported that rebates were banned in Alaska, New Jersey, Kansas, Oklahoma, Rhode Island, Louisiana, South Carolina, Mississippi, West Virginia and Missouri. Rebates were reported as restricted to credits at closing in Alabama, South Dakota, Oregon and Tennessee. If rebates aren’t available in your state, you might ask your buyer agent what incentives are available. After all, for being a smart buyer in today’s challenging real estate market, you deserve som
This article relates to the organizational structure competency, commonly evaluated in employee satisfaction surveys. It shows how structural concerns can affect the typical employee workday, as well as feelings towards your organization's management hierarchy and reporting structure. A healthy organizational structure is one that arranges the activities of the enterprise in such a way that they contribute to the goals of the organization. Specifically, this competency looks to see if your employees clearly understand who they report to, as well as measure their sense of accountability to the organization. Evaluating this competency can be especially useful if your organization has recently experienced an organizational restructuring or might be considering one in the future.
The rebate process seems confusing to some buyers because it runs counter to the common belief that home buyers don’t pay real estate commissions. In fact, commission costs are passed on to buyers as part of the home’s sales price. Buyer-agents typically are paid half the standard 5-6 percent of sales price commission. That money doesn’t come from thin air…chances are that the sellers have factored commission into their price. When traditional listing agents tell sellers not to stress over commissions, because they can recover the costs through a higher sales price, someone is paying the freight.
So how do home buyer rebates work, and what’s in it for you?
- In traditional real estate transactions, buyer representatives and seller representatives typically share commissions of 5 to 6 percent. Selling brokers usually offer half this commission to a broker who brings them a buyer. As an incentive to drum up business, some brokers now offer to rebate a portion of their buyer-representative commission to home buyers. For example, suppose you buy a $400,000 home on which the seller pays a six percent commission. The buyer and seller representatives split the $24,000 commission evenly. In this case, a one percent rebate means that the buyer representative receives $12,000 from which they pocket $8,000 and “rebate” $4,000 back to the buyer.
- Buyer rebates generally depend on the home’s sales price, total amount of commission and the commission split. Some rebates may be advertised as a percentage of the buyer-representatives commission. In the example above, the rebate is $4,000, or about 33 percent of the $12,000 buyer-side commission. Other companies offer fixed-amount buyer rebates, such as $1,000 in cash or a $1,000 gift certificate.
Homebuyer rebates: To ban or not to ban?
At the same time consumers are looking to rebates to help relieve the high cost of home buying, traditional real estate brokers are trying – and succeeding in some cases – to prevent their use. Broker lobbying groups around the nation, concerned about price competition and downward pressure on commissions, have successfully lobbied lawmakers in 10 states to make home buyer rebates illegal. Four more states limit home buyer rebates to credits at closing. Fortunately for Florida buyers enduring record-setting home prices, rebates remain legal in the Sunshine State.
Industry watchers recently have looked to the state of Kentucky to see where the rebate debate might lead. In March, the U.S. Department of Justice sued that state’s Real Estate Commission, alleging that its rebate ban violated antitrust laws. The DOJ investigation alleged that Kentucky’s rebate ban may cost consumers “several thousand dollars” extra for each real estate transaction. In July, rebate fans received a victory when the DOJ and the Kentucky Real Estate Commission reached an agreement permitting rebates in that state.
If you’re shopping for a rebate, get the facts:
Some points to keep in mind if you are a home buyer looking to take advantage of rebates:
- Shop around. Some rebate programs included other buyer services, such as contract preparation or review, or escrow services. Even in a sellers’ market, buyers have some leverage. After you have established the rebate amount, ask what else is in the package to help simplify your purchase and control transaction costs.
- Consider your tax picture. Getting a rebate in the form of funds applied to closing can be double-win because that money may go untaxed when applied to closing costs. If the rebate or a portion of the rebate is not available until after closing, it may need to be reported as taxable income. Of course, this isn’t an issue if you have plans for your rebate other than closing costs. Be sure to consult your tax advisor for this and other tax consequences of home buying.
- Rebates won’t be available on many homes, including sale-by-owner homes and some homes sold by discount brokers. That’s because in these cases, the traditional commission percentage and split – from which the rebate is derived – doesn’t apply. Some real estate companies don’t offer buyer-agent commissions, and owners selling their own homes probably are doing so to avoid commissions.
Finally, check to see if rebates are legal in your state. Money Magazine’s 2005 Real Estate Guide reported that rebates were banned in Alaska, New Jersey, Kansas, Oklahoma, Rhode Island, Louisiana, South Carolina, Mississippi, West Virginia and Missouri. Rebates were reported as restricted to credits at closing in Alabama, South Dakota, Oregon and Tennessee. If rebates aren’t available in your state, you might ask your buyer agent what incentives are available. After all, for being a smart buyer in today’s challenging real estate market, you deserve so
What makes your ezine hot stuff? With literally thousands of ezines online today, how can yours stand out or is it doomed to stay in the junk mail folders??The first thing to think about is, what is your ezine about? Do you have a clue? If you don't know then you can bet a million dollars that your readers haven't the slightest idea what you are talking about.Define what your purpose is in the first place.Information, Advertising, Current Events, Reviews.The choice is yours and the possibilities are endless..One of the biggest mistakes I see a lot of people do is to mirror another ezine. We all have ezines that we love to read and learn from but that doesn't mean that you need to duplicate the exact same type of ezine. Many of us get sucke
- Buyer rebates generally depend on the home’s sales price, total amount of commission and the commission split. Some rebates may be advertised as a percentage of the buyer-representatives commission. In the example above, the rebate is $4,000, or about 33 percent of the $12,000 buyer-side commission. Other companies offer fixed-amount buyer rebates, such as $1,000 in cash or a $1,000 gift certificate.
Homebuyer rebates: To ban or not to ban?
At the same time consumers are looking to rebates to help relieve the high cost of home buying, traditional real estate brokers are trying – and succeeding in some cases – to prevent their use. Broker lobbying groups around the nation, concerned about price competition and downward pressure on commissions, have successfully lobbied lawmakers in 10 states to make home buyer rebates illegal. Four more states limit home buyer rebates to credits at closing. Fortunately for Florida buyers enduring record-setting home prices, rebates remain legal in the Sunshine State.
Industry watchers recently have looked to the state of Kentucky to see where the rebate debate might lead. In March, the U.S. Department of Justice sued that state’s Real Estate Commission, alleging that its rebate ban violated antitrust laws. The DOJ investigation alleged that Kentucky’s rebate ban may cost consumers “several thousand dollars” extra for each real estate transaction. In July, rebate fans received a victory when the DOJ and the Kentucky Real Estate Commission reached an agreement permitting rebates in that state.
If you’re shopping for a rebate, get the facts:
Some points to keep in mind if you are a home buyer looking to take advantage of rebates:
- Shop around. Some rebate programs included other buyer services, such as contract preparation or review, or escrow services. Even in a sellers’ market, buyers have some leverage. After you have established the rebate amount, ask what else is in the package to help simplify your purchase and control transaction costs.
- Consider your tax picture. Getting a rebate in the form of funds applied to closing can be double-win because that money may go untaxed when applied to closing costs. If the rebate or a portion of the rebate is not available until after closing, it may need to be reported as taxable income. Of course, this isn’t an issue if you have plans for your rebate other than closing costs. Be sure to consult your tax advisor for this and other tax consequences of home buying.
- Rebates won’t be available on many homes, including sale-by-owner homes and some homes sold by discount brokers. That’s because in these cases, the traditional commission percentage and split – from which the rebate is derived – doesn’t apply. Some real estate companies don’t offer buyer-agent commissions, and owners selling their own homes probably are doing so to avoid commissions.
Finally, check to see if rebates are legal in your state. Money Magazine’s 2005 Real Estate Guide reported that rebates were banned in Alaska, New Jersey, Kansas, Oklahoma, Rhode Island, Louisiana, South Carolina, Mississippi, West Virginia and Missouri. Rebates were reported as restricted to credits at closing in Alabama, South Dakota, Oregon and Tennessee. If rebates aren’t available in your state, you might ask your buyer agent what incentives are available. After all, for being a smart buyer in today’s challenging real estate market, you deserve so
Q: I really want to start my own business, but I have no idea what business would be best suited for me. I'm also eager to get started, but I don't want to pick the wrong business just because I'm impatient. How should I go about deciding what business would be best for me? -- Samuel J.A: Before I answer your question, Samuel, I want you to reach around and pat yourself on the back for not letting your eagerness push you into making a wrong decision. All too often we entrepreneurs tend to let our impatience drive us to make decisions that we later regret. In business such haste can be very costly, indeed.I always compare starting a business to jumping into a pool of freezing water. There are typically two types of entrepreneurs who take the plunge.The first a
Industry watchers recently have looked to the state of Kentucky to see where the rebate debate might lead. In March, the U.S. Department of Justice sued that state’s Real Estate Commission, alleging that its rebate ban violated antitrust laws. The DOJ investigation alleged that Kentucky’s rebate ban may cost consumers “several thousand dollars” extra for each real estate transaction. In July, rebate fans received a victory when the DOJ and the Kentucky Real Estate Commission reached an agreement permitting rebates in that state.
If you’re shopping for a rebate, get the facts:
Some points to keep in mind if you are a home buyer looking to take advantage of rebates:
- Shop around. Some rebate programs included other buyer services, such as contract preparation or review, or escrow services. Even in a sellers’ market, buyers have some leverage. After you have established the rebate amount, ask what else is in the package to help simplify your purchase and control transaction costs.
- Consider your tax picture. Getting a rebate in the form of funds applied to closing can be double-win because that money may go untaxed when applied to closing costs. If the rebate or a portion of the rebate is not available until after closing, it may need to be reported as taxable income. Of course, this isn’t an issue if you have plans for your rebate other than closing costs. Be sure to consult your tax advisor for this and other tax consequences of home buying.
- Rebates won’t be available on many homes, including sale-by-owner homes and some homes sold by discount brokers. That’s because in these cases, the traditional commission percentage and split – from which the rebate is derived – doesn’t apply. Some real estate companies don’t offer buyer-agent commissions, and owners selling their own homes probably are doing so to avoid commissions.
Finally, check to see if rebates are legal in your state. Money Magazine’s 2005 Real Estate Guide reported that rebates were banned in Alaska, New Jersey, Kansas, Oklahoma, Rhode Island, Louisiana, South Carolina, Mississippi, West Virginia and Missouri. Rebates were reported as restricted to credits at closing in Alabama, South Dakota, Oregon and Tennessee. If rebates aren’t available in your state, you might ask your buyer agent what incentives are available. After all, for being a smart buyer in today’s challenging real estate market, you deserve so
You have all heard the adage that if you are a hammer, everyone is a nail. You can't treat everyone exactly the same. You have to customize your presentation. You have to read the customer. Imagine if the only tool your dentist had was a hammer. Think about it. As you master the art of persuasion and influence, you will find that there are many camps out there. You have the NLP camp, those that believe that neuro-linguistic programming is the key to success. Many believe it is all about the closing skills they learn from trainers like Tom Hopkins or Zig Ziglar. In some feel that Dr. Teledyne's basic research and influence is the key. Others believe Dale Carnegies people skills are the way to go. Some people think we should use force, some think inc
- Rebates won’t be available on many homes, including sale-by-owner homes and some homes sold by discount brokers. That’s because in these cases, the traditional commission percentage and split – from which the rebate is derived – doesn’t apply. Some real estate companies don’t offer buyer-agent commissions, and owners selling their own homes probably are doing so to avoid commissions.
Finally, check to see if rebates are legal in your state. Money Magazine’s 2005 Real Estate Guide reported that rebates were banned in Alaska, New Jersey, Kansas, Oklahoma, Rhode Island, Louisiana, South Carolina, Mississippi, West Virginia and Missouri. Rebates were reported as restricted to credits at closing in Alabama, South Dakota, Oregon and Tennessee. If rebates aren’t available in your state, you might ask your buyer agent what incentives are available. After all, for being a smart buyer in today’s challenging real estate market, you deserve some type of reward.
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