CLOSING COSTS REBATES - For Buyers

You’ve done your homework, researched the communities & schools on line.  You’ve even seen a few properties.  You want to buy a property with a real estate agent because you know that they can help you find the best deals and protect your interests in a transaction, but what about all that hard work?  Alvaro and Browser, with Ocean View Int’l Realty recognize the value of your work and are willing to share part of the Buyer’s agent’s commission with you. 

The Process

1. Register on the site – rebates are provided only for registered users of closingcostsrebate.com and alvaroandbrowser.com

2. Pre-Qualify for a loan – Use your own bank, find your own mortgage broker, or call us and we can find you one, too.

3. Search for houses -

- http://www.alvaroandbrowser.com/PropertySearch

- http://www.realtor.com

- http://coconutgrove.sef.mlxchange.com

- http://www.homepages.com/realestatewiththerightattitude 

4. House Tour – After you do your homework, researching in the above links or driving around or in the newspaper if you would like to see the house, contact us and we will set up an appointment for you. Please obtain a pre-approval letter prior to viewing the interior of the properties. We recommend a maximum of three properties per trip.  Be sure to mention you are working with Alvaro, or you will not be eligible for the Buyer's rebate.

5. Make an offer on a house – We provide you with sales comparables of similar houses sold in the area so you can make an intelligent offer. Our Analysis and Market Reports are extremely comprehensive, combining data from the Realtor’s MLS, the Public Tax Rolls, Commercial subscription-only databases and on-the-street knowledge of the South East Florida neighborhoods. We are a full service company. We guide you through the entire buying process: offer, negotiations, appraisal, inspections, title, attorney, loan process, closing and post-closing follow-up (i.e. making sure you remember to apply for the Homestead exemption).

Where does the money come from?

When a home is made available for sale, the seller hires an agent known as the “Listing Agent”. The listing agent charges a commission, usually a percentage-based fee.  In South East Florida typically the fee is 6% of the sale price plus any applicable transaction fees. This commission is split between the Listing Agent and the agent that brings the buyer, or the Buyers Agent.  If the buyer does not have an agent, then the Listing agent gets to keep all 6%.   So if you think shopping without an agent will save you money, think again!  Not only do you enter into a potentially complex negotiation and transaction without professional representation, you just rewarded the Listing Agent with what is known as a “double dip,” or double commission.  If you use us as your Buyer’s Agent we will not only provide you with comparable sale data and advice on how to make winning offers, we will share part of our Buyer’s commission with you.  In a 6% transaction, we will share 33% of the Buyer’s commission, or 1% of the purchase price.  

Can I receive my rebate at the closing?

As the rebate practice is new, not all lenders will allow the rebate to be reflected on the closing statement (HUD-1).  In these instances you will be paid after the closing in the form of a check. We have no control as to whether the lender will allow the rebate on the HUD-1.

If I am already working with a real estate agent, may I still use your services?

If you have not signed a contract to work with a real estate agent, then you are free to come to our network. But if that agent has shown you properties, we cannot represent you in the purchase of those properties.

What properties are elegible?

The rebate only applies to transactions of at least $150,000 and rebates are only available to registered users. Properties must be located in Florida and offer a commission to the buyer-broker.  When you search properties on ClosingCostsRebate.com, you will see results displayed for Ocean View-listed properties and IDX/MLS (broker-listed) properties. Thousands of properties displayed in the IDX/MLS listings are eligible for a rebate. You don't need to find your property through us to qualify for a rebate. If you find a broker/MLS listed property on Realtor.com, Yahoo!, AOL, MSN...even if you drive by and see a yard sign, you can buy it through ClosingCostsRebate.com program.

Why anyone think of this sooner?

It was just not possible before the Internet.

Why must I be pre-approved before making an offer on a property?

The Closing Costs Rebate program is for buyers who are ready to get down to business.  Pre- approval means that you know how much you can afford and are willing to move quickly.  The rebate is designed to reward buyers willing to do a little homework, and this is an important element of that homework. 

Is the rebate considered taxable income to the buyer?

We suggest you speak to your CPA or qualified professional like your local tax attorney.

If a licensee rebates part of the commission as a gift to a buyer or seller, must that gift be disclosed to the other party?

Yes. The license law provides, in Section 61J2-10.028(2), that if a licensee shares part of his/her compensation with a party to a real estate transaction and fully discloses that gift to all interested parties, the sharing of the commission is not considered a violation of the license law.

Source: Planet Realtor Legal Hotline