GET PAID TO BUY YOUR NEXT HOME!
Lowes Flat Fee Realty is pleased to offer buyers a cash rebate when you use us to purchase your home. Available in Idaho, unfortunately not in Oregon, due to state regulations. When you use us to purchase your Idaho property we will rebate back to you ½ of any commission we receive as result of your purchase. For example, if you purchase a home for $350,000, and the commission rate being offered in the Multiple Listing Service to a buying agent is 3%, then we will rebate back to you at closing, or immediately following, a cash rebate in the amount of $5,250! You can use it to buy furniture, pay off debt, or with lender approval, or use right at closing for closing costs or down payment, it’s your choice. If your purchase amount is larger, then, of course, your rebate is larger. Say your purchase is $950,000, and buyer’s agent’s commission is 3%, then your rebate is $14,250.
It is important to remember that commission rates are not standard, and sellers can offer differing amounts in the MLS. In Idaho, 3% is what is most often seen, but we also often see 2.5%, along with 2% and lower occasionally. Your rebate amount would be based on whatever the actual amount received by Lowes Flat Fee Realty as result of your purchase. For example, you purchase a property for $2,500,000 with a commission rate of 2%, your cash rebate is $25,000.
Sounds great doesn’t it!
HOW DOES IT WORK?
Sellers, when listing a property, agree to pay the listing agent a fee for selling their property; most often it is a percentage of the sales price of the property. Of that total amount of commission, the seller also authorizes a portion to be offered in the Multiple Listing Service to the buyer’s agent that brings a buyer that purchases their property. What is most prevalent in Idaho, is a total commission of 6% with 3% being offered to the buyer agent. As mentioned above, this is not a standard amount and we expereince a variety of agreements. As agents look at property listings in the MLS, the amount being offered to buyer’s agent is disclosed, the total amount being paid to the listing agent by the seller is not.
In order for us to receive that commission offered to a buyer’s agent, that we might be able to share it with you, we must be your buyer’s agent. To establish a buyer’s agent relationship in Idaho, by state regulation, requires that it be in writing. So, we will need you contact us to sign that agreement, which also guarantees you your buyer rebate! Also, sometimes if there becomes a dispute regarding which agent is owed that commission, procuring cause may be looked at. Procuring cause is what agent is responsible for the buyer buying the property. What this means is that when you begin looking for your new house or other property, it is important that you have an agent relationship established with us, AND you inform listing agents that you come in contact with, of our relationship.
FINDING YOUR NEW HOME.
To find your new home, you have likely already begun looking online; whether it is on national sites such as Zillow, Realtor.com and the like, or perhaps smaller more local sites. You should know, and you may have already found out, that on most of these 3rd party sites it is difficult to get information from the actual listing agent. Any inquiry you make will likely be directed an agent who has paid for the right to receive buyer leads generated by that listing on that site.
We can assist you in your search, and we can set you up with automatic email notifications of the new listings that come on the MLS that match the parameters for which you are looking. That way you can have immediate knowledge of fresh properties so that you can act quickly. Also, you will get that information without the accompanying phone calls from agents wanting to sign you as client.
When you have possibly found that dream home, you have driven by and like the area, and it is time to see the interior, now what?
VIEWING THE HOME
We want to treat all agents fairly, and we also want to be sure that we both are paid. Where you earn your part of that payment comes in the viewing of the property. If you have already seen it because you have been the house previously, or have seen at an open house or perhaps it is vacant land then your job is easy. If you need to get into the property then it becomes a bit more of that type of job that takes some effort. You will need to contact the listing agent and explain that you are interested in the home, and that you are represented by a buyer’s agent. This is a critical step to ensure that the commission will be paid and you will receive your rebate. Explain that your agent is not able to show you the home, and ask does he have some time at his convenience that he could show you. Now, although listing agents have a fiduciary responsibility to get buyers into their client’s home to try and sell it, they often will be resistant, asking you to have your agent make that showing. You see listing agents do not normally show the home, unless it is to their buyer.
Make sure you let them know that you have done your homework, you have already driven by the home and like the area; that you are preapproved and ready to buy, you are not just a window shopper. Be respectful of their time and be courteous. If they are still unwilling, sometimes, you can offer to give them $20 or something for their trouble, (if you are serious about this home it is a small amount to pay compared to rebate you are earning.) Or perhaps ask if they have another newer agent in their office that may be willing to show you.
Finally, you can offer to share part of our commission, what we call an “ Agent Showing Incentive Fee,” if you purchase that home. Say you have been authorized by their agent to offer $600 as an added amount to their split of the commission, at closing. Don’t offer this unless you have to, as this amount will reduce both of our payment amounts. This amount will be deducted from the amount that our office receives in commission, and that is the amount that will be split in half. So, in this example since an $600 “Agent Showing Incentive Fee” was offered both of out nets will be reduced by $300.
These are just some of the ways to motivate a listing agent, it is up to you to figure the best way. Many agents will be happy to assist you, especially if you explain what you are working to accomplish and remain respectful of them and their time.
TIME FOR AN OFFER
When you are ready to make an offer, this is where I come in more to assist you. I will prepare the offer along with any accompanying addenda for you. (I will also follow up with any counter offers, inspection addendums, and provide guidance and assistance all the way through the closing process.) You will provide me with all the necessary information, such as buyer’s names, offer price, amount of earnest money, requested closing date, other contingencies etc. I will guide you through this process and get the required information as well as provide general information, suggestions and cautions. Once we have the offer completed we will send to you for your final review and electronic signatures. Then, once signed, we will forward the offer to the listing agent and coordinate any follow up counter offers or addenda.
THE OFFER IS ACCEPTED, NOW WHAT?
We will coordinate document flow between you, the buyer, buyer’s agent, buyer’s lender if there is one, the title and escrow company etc.. We will also work with you regarding any addenda as the result of the inspection, and any other subsequent changes that may be required.
Also before we get to closing you will need to decide how you want to use that rebate; whether at closing for costs or after for whatever you want.