If you love getting a good deal on things you buy, you may want to take a few extra steps when buying a house to find the best deal. One option you have is to pursue getting a home buying rebate on the purchase. If you have never heard of this, you probably do not know what it is or how it works. Here are four facts to help you understand what home buying rebates are.
They Provide a Reward When Buying a House
As the name implies, a home buying rebate is a reward you receive from buying a house. The reward comes in different forms, including cash. If you receive a cash rebate, the agent you work with will give you a stated percentage of your closing price. The rate might be 1% to 3%, depending on the agent and timing of the deal.
You can also receive other rewards instead of cash. If you prefer putting the rebate towards your home's costs, you might be able to apply it to the closing costs. Sometimes, the rebates come in the form of gift cards or other items, too.
They Are Not Legal in All States
You cannot get a home buying rebate in every state. As of now, they are legal in only 40 states. Oregon, Alabama, and Tennessee are three examples of states that currently prohibit rebates on home purchases. If you live in a state where it is legal, you will not automatically get a rebate. You may have to work for it.
Only Specific Agents Offer Them
Even in the states that allow home buying rebates, some agents do not offer them. You may have to look to find an agent that offers them, and they might not be available all year long. Agents might only offer them during periods where homes are not selling well, as offering a reward can be an incentive for people to buy.
You Can Negotiate on the Rebate
The fourth thing to know is that you can negotiate on the rebate. When you hire an agent, you can talk to them about it, and you can negotiate to get the best rebate possible. After agreeing on a rebate amount and type, make sure the agent records this in the contract.
Learning these facts about home buying rebates can help you understand how to get one on your next home purchase. If you would like more information, talk to a real estate agent that offers them.
This website can serve as your home for information about real estate. Here, you will find articles about the buying process and others on the selling process. We've also included content related to getting a mortgage, finding a real estate agent, and scheduling an inspection. We hope that by addressing all aspects of the real estate world, we will make you better prepared to handle any real estate transactions that might be in your future. After all, real estate can be a really smart investment, but only if you buy the right home and know how much to offer. Start reading, and enjoy what you find.