Idaho: 208-386-2992
Colorado: 719-960-0045
Oregon: 971-337-2400
Washington: 206-385-0030
A Homezu Partner
At Lowes Flat Fee Realty we specialize in saving home sellers and buyers money, we look for win-win situations.
For buyers the way we do that is with our Buyer Rebates!
For example, if you purchase a home for $350,000, and the commission rate is 3%. We will rebate back to you at closing, or immediately following, a cash rebate for $5,250!
You can use it to buy furniture, pay off debt, or with lender approval use it right at closing for closing costs or a 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 the buyer’s agent’s commission is 3%, then your rebate is $14,250.
It is important to remember that commission rates are not standard, not set by law and are negotiable. 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 the actual amount received by Lowes Flat Fee Realty as a result of your purchase.
Sounds great doesn’t it?
HOME BUYER REBATES: HOW DO THEY WORK?
Here in Idaho we have long offered a buyer rebate program, this is where we rebate back to our home buyers a portion, normally 1/2, of any commission we received as a result of them purchasing a home through us.
Due to a recent class action settlement agreed to by the National Association of Realtors, the way we do business has changed a bit; in the past sellers generally agreed to pay a certain commission to their listing agent and that agent offered to share a portion of that commission to an a agent that brought a buyer, and that was advertised in the Multiple Listing System operated by local Realtor associations. The settlement prohibited mentioning the amount of commission in the MLS. We wondered how it would affect our ability to offer rebates, what we have found that most agencies are continuing doing business the way they have always done, with sellers agreeing to a certain percentage of the sale as commission and then a portion of that be offered to buyer agents, just not mentioned in the MLS.
In addition, Realtors representing buyers are required to sign an agreement with buyers prior to showing them properties, and this will include what amount of commission the buyer’s agent will be receiving upon a successful transaction. The Realtor is limited to receiving no more than the amount agreed to by the buyer.
So how do we save the most money for you, the home buyer? Continuing with our rebate plan is still the most viable option. Representing you, we ask the seller for a percentage of the sale in your offer, as most sellers have already agreed, and of that amount we rebate 1/2 of that to you!
In order for us to receive that commission offered to a buyer’s agent, that we will 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 any listing agents that you come in contact with, of that relationship.
HOW IT WORKS
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 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, and 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 this part is easy.
Listing agents do not generally show their listed homes unless it is to buyers they are representing. So, we have made arrangements with local agents that will accept a small fee to show you the homes you’re interested in viewing. The fees agents charge to show will vary, but generally are around $. . You will be charged this fee at the time of showing. At closing, we will reimburse you for these charges up to $200. So, it is wise to do your homework and limit the number of homes you request to view. Regardless, the fees are very small compared to the amount of money you will be getting back as your rebate.
Remember it is critical that you do not contact the listing agent directly and fail to indicate that you are currently represented by a buyer’s agent, you need to ensure you are able to get your rebate.
TIME FOR AN OFFER
When you are ready to make an offer, this is where we come in more to assist you. We will prepare the offer along with any accompanying addenda for you. (We 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 us 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. We are with you all the way through closing.
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.