Fee for service real estate A review of the basics
Real estate commission rebates give buyers the financial power to buy homes that they may not otherwise be able to afford. The reasoning behind real estate commission rebates is based on the fact that 21st Century home buyers most likely have found their homes through a search of the Internet, not with the exclusive assistance of a broker; these buyers feel that they should share in at least a portion of the commission. You cant fault buyers for asking for a rebate. After all, those who are computer savvy are certainly capable of locating their own potential homes on the Internet and should not have to pay commission for a service that their broker did not perform. Generally speaking, real estate commission rebate brokers represent buyers during contract negotiations and at other times during the closing process when those buyers interests need protecting; for this level of representation they will either receive a straight salary or return a portion of their earned commission at closing.