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From the Dept of
Justice website:
"How do
rebates work?
Some real estate brokers offer
consumers cash refunds or non-cash incentives to
encourage them to use that broker’s
services. Rebates are typically cash payments from the
real estate broker to his or her client after
closing. Incentives may include gift certificates,
closing-cost payments, or free ancillary services such
as home inspections or moving services.
How do rebates benefit consumers?
Rebates can save consumers several
thousand dollars in a single transaction. For example,
if a broker offers to refund one-third of its
commission to the homebuyer, the average buyer of a
$300,000 home could save $2,500 to $3,000 (based on
the 2.5% to 3% commission rates typically earned by
the buyer’s
broker)." DOJ website http://www.usdoj.gov/atr/public/real_estate/rebates.htm
As the DOJ website indicates, buyer
broker rebates save home buyers money.
Also, the Federal Government is
getting involved with home buyer rebates to help spur
the housing market by offering tax credits to home
buyers. According to (CNNMoney.com) --
"First-time buyers can claim a credit worth
$8,000 - or 10% of the home's value, whichever is less
- on their 2008 or 2009 taxes. A big plus is that the
credit is refundable, meaning tax filers see a refund
of the full $8,000 even if their total tax bill - the
amount of witholding they paid during the year plus
anything extra they had to pony up when they filed
their returns".
"To qualify for the credit, the
purchase must be made between Jan. 1, 2009 and Nov.
30, 2009. Buyers may not have owned a home for the
past three years to qualify as "first time"
buyer. They must also live in the house for at least
three years, or they will be obligated to pay back the
credit.
Additionally, there are income
restrictions: To qualify, buyers must make less than
$75,000 for singles or $150,000 for couples.
(Higher-income buyers may receive a partial
credit.)" See http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm
Also, check with your tax advisor
to see if you qualify for a tax credit! As you
can see, the Federal government views rebates as a way
to spur the housing economy, that is why they are
offering rebates or cash credits in the form of tax
credits to home buyers.
Whether is a tax credit from the
federal government or a commission credit or rebate
from your real estate broker, rebates are good way to
save money on your home purchase.
Federal
tax rebates may be expiring soon but commission rebates
from real estate brokers are not so if you are looking
to purchase a home and would like to get a rebate from
your real estate broker, please click on to Home Buyer Rebates
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