Reducing Mortgage Closing Costs When Buying Real Estate
Some real estate buyers have found a way to reduce costs on the purchase of a home.
With internet access buyers can be more active in researching and viewing homes for sale, which has the potential of savings thousands of dollars.
Accessing real estate listings online, which used to be only available to agents, now gives home buyers the option to negotiate a cash rebate from their agent.
Some real estate agents are willing to split their sales commission in order to save more of their time and effort on a transaction. Before a buyer makes an offer on a home, an agreement can be made with an agent to represent them in exchange for a share of the commission, which is paid by the home seller at the close of escrow.
How much of a rebate a buyer can get depends on two variables: the share of the commission negotiated with the agent, and the sales price of the home purchase.
A typical commission paid by a home seller to a buyer's agent is 3%. If the sales price of a home is $400,000, and the buyer negotiates a 50% share of a 3% commission, that would be a rebate to the buyer of $6,000.
A rebate can be used to pay mortgage closing costs, providing there are no restrictions from the mortgage lender, or state laws that regulate real estate transactions. There are a few states that do not allow buyers to receive cash rebates.
Mortgage Quotes
With internet access buyers can be more active in researching and viewing homes for sale, which has the potential of savings thousands of dollars.
Accessing real estate listings online, which used to be only available to agents, now gives home buyers the option to negotiate a cash rebate from their agent.
Some real estate agents are willing to split their sales commission in order to save more of their time and effort on a transaction. Before a buyer makes an offer on a home, an agreement can be made with an agent to represent them in exchange for a share of the commission, which is paid by the home seller at the close of escrow.
How much of a rebate a buyer can get depends on two variables: the share of the commission negotiated with the agent, and the sales price of the home purchase.
A typical commission paid by a home seller to a buyer's agent is 3%. If the sales price of a home is $400,000, and the buyer negotiates a 50% share of a 3% commission, that would be a rebate to the buyer of $6,000.
A rebate can be used to pay mortgage closing costs, providing there are no restrictions from the mortgage lender, or state laws that regulate real estate transactions. There are a few states that do not allow buyers to receive cash rebates.
Mortgage Quotes
posted by CRHOME.com at
6:35 AM
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