Home rebates are one of the best opportunities available to the buyer when purchasing a home. But in order to qualify for this, you must meet a few general requirements. Let’s cover these topics for you.
Purchasing a new home is a massive accomplishment that is often extremely exciting. However, there are some guidelines you must meet first, so you can take full advantage of this awesome reward.
This is exactly what we are going to cover today in our article, so that you can have a better understanding of what must be done to be eligible for your split of the refund. Before you begin to look into taking advantage of this incentive, you must first learn if you qualify. Determining this is actually very simple, which is why we have included the most important first steps to qualifying.
If you do not see your question here, then please reach out to us and we will be happy to assist you with any questions you may have. Let’s go over a few general aspects you must meet in order to qualify for this fantastic opportunity.
Determining Your Eligibility
Property Location
This is an important aspect to consider if you are interested in a new home rebate, most particularly because this advantage is not legal in 10 states.
Luckily for its citizens, Colorado is one of the 40 states that allows this opportunity. If you are looking to purchase a home outside of Colorado, make sure that the state you are moving to allows new home rebates.
This can occasionally be overridden, as certain brokers may be able to apply some sort of discount on closing or any other costly aspects regarding the purchasing of a home, but you can’t expect this in every case. Please click here to view a national map of states where home rebates are not legal.
Proper Broker
This is another aspect sometimes overlooked, but in order to qualify for a new home rebate, you must use a brokerage.
The main concept of a new home rebate is the advantage of having a portion of the buyer’s real estate agent’s commission given to the buyer, usually up to 1.5%. This is not possible if you plan on purchasing a new home without an agent, so make sure you find a brokerage and ensure they offer this incentive.
Here at (insert business name) we are proud to say that we offer fantastic incentives that many other brokerages do not. You must also establish an agreement with your broker before purchasing the property to qualify for the rebate.
Property Type
The type of property you are interested in buying can also have an effect on whether you qualify or not. The majority of the time, various properties such as single-family homes, multi-family homes, and even condos in most cases are eligible.
This can change, however, when you are interested in other property types, such as mobile homes; but this widely depends on the particular broker you are using. For example, if you plan to buy a mobile home using a broker that does not offer this incentive with this specific property type, you will not qualify.
That being said, if you do your research beforehand and find a broker that offers this service for mobile homes, you will then be one step closer to qualifying. If you are unsure about your property and whether it’s eligible, feel free to contact us.
Helpful Information
Finding Your Broker
It’s not uncommon for those looking to purchase a new home to think that all brokers offer this incentive. This however is not the case; as this incentive is an option and not a requirement for brokers.
Thankfully for any buyers in the market, many brokers do offer this opportunity. Just be sure to do your research before you stick with a broker and end up finding out that they do not actually offer this incentive.
Not only are we proud to offer some of the best incentives in all of Colorado, we also have decades of knowledge to assist you in this exciting process. Having a professional broker is crucial in the home buying process, and a requirement to get a new home rebate.
How Rebates Work
New home rebates are actually really simple to understand once you know the basics. Rebates work by taking 6% of the sale price of the home and splitting that between the buying and selling agent, leaving them each with 3%.
The 3% that your agent is left with is again split, usually by 50%, which is then given to the buyer. This means that in the end, the buyer and buyers agent keeps a total of 1.5% each. We offer great incentives just like this, so feel free to reach out anytime if you have any questions.
Why Do Brokers Offer Rebates?
Rebates are essentially money given to you from your real estate agent. They often do this for a few reasons, more often than not because for one, brokers have much more flexibility with what they want to do with their commissions now more than ever.
This is particularly due to websites such as Zillow bringing in clients, which in turn saves the broker big time on marketing. This allows them to split this commission, typically at 50%, to give potential clients an incentive to use them over others.
We’re proud to offer this incentive, as this allows for our clients to have money that they can invest into closing costs, home maintenance or even fun add-ons.
Overview
Home rebates are undoubtedly one of the best perks to take advantage of here in Colorado. The qualifications needed to be eligible are far and few between, which means you likely will have this opportunity available to you.
A common misconception is that one must have perfect credit or a high paying job to qualify; but this is not the case. Rebates are simply a split of commission given to you as a gift for using the broker, therefore there are naturally not many things to qualify for.
If you have anything regarding qualification that is not within this article, we are happy to help you. Contact us anytime at your own convenience.