Home rebates are an exciting opportunity often available when purchasing a home, but does previously owning a home disqualify you from being able to take advantage of this awesome opportunity? Let’s find out.
Purchasing a home is one of the most exciting and best long term decisions anyone can make. This also gives you the option of taking advantage of home rebates, which can be paid via check, or invested back into the home such as upgrades or additions.
However, do note that you will need to meet a few qualifications in order to be eligible for this incentive. These should be considered before reaching out and being told something you don’t want to hear, although the list thankfully isn’t long.
Qualifying does not actually have many requirements, though, so let’s go over a few factors that are important to know whether you are eligible. This is particularly true if you have previously purchased a home.
Determining Eligibility
This process is normally completely at the broker’s discretion, which means that the broker you are interested in may have certain guidelines set in place in terms of being eligible if you have previously owned a home. For example, it could be that this guideline has a certain time frame, which means their guidelines may be that you must not have owned a home within the past 10 years.
Granted, this is often not the case, as previously owning a home does not really affect the commission opportunities for all parties. This is fantastic news, but before you choose a broker and stick with them, you should inquire about a home rebate and whether you meet their qualifications, particularly inquiring if you are eligible after having owned a home previously.
We rarely work with clients that are not eligible, so there is likely no need to worry about a potential denial when working with us. There are other types of things to consider as well, such as property type, which we will also be covering in this article.
Commonly Asked Questions
What Types of Properties Qualify?
Each brokerage has specific types of properties they offer rebates with. This can be anything from a single family home, multi-family home, condo, or any other type of property.
For example, one broker may only offer this incentive on single-family homes and condos, while the other broker may only offer rebates on single-family homes and multi-family homes.
We here at (enter business name) are proud to offer new home rebates on many types of properties, meaning you will likely have this incentive available to you when using (enter business name).
How Do I Get Started?
When you get ready to begin the home buying process and take advantage of all the awesome incentives available, you will need to contact a broker. Before you begin really laying the groundwork and getting started, you’ll want to make sure they offer this incentive for your specific interest. This is how you can avoid getting late into the buying process, only to later be disappointed.
After doing this, your broker will create an agreement that you will need to sign, which will then officially sign you up for the new home rebate. This is generally actually a very simple process, as it includes a brief overview of everything you and your broker have agreed to.
Make sure to read all of the fine print too, to ensure that you understand everything within the agreement. If you do not, your broker will be happy to assist you. That’s exactly why we have created a very simplistic, yet very powerful agreement that is easy to understand. We’re also happy to answer any questions that you may have at your convenience.
How Does It Work?
Rebates are actually very simple to understand, once you know the core of how they work. In the overwhelming majority of cases, brokers who offer rebates as home buying incentives have an overall combined commission rate of 6%.
This 6% is at this point split between the buying and selling agent, leaving your broker with 3%. This 3% is then split between you and your broker, leaving you both a reward of 1.5% of the sale price of the home.
For example, if the house you are purchasing has a sale price of $100,000, $6,000 of this will be split and given to each broker, giving them each 3% or $3,000, ending with you and your broker receiving 1.5% or $1,500 each.
Are Rebates Taxable?
New home rebates are considered by the government as an adjustment, therefore making them non-taxable. This is great news, as you will walk away with what exactly your agent planned to refund. A fantastic turn of events for the buyer, as this leaves you with more money to invest into whatever you’d like.
Can You Negotiate?
Negotiation is possible, but it can sometimes create a negative situation. If you find that your broker is offering a very low incentive, it may be worth it under rare circumstances. However, if the incentive is already top tier at 1.5%, we do not recommend negotiation. We are proud to offer one of the highest percentages in the state of Colorado, at a hefty 1.5% of the sale price of your new home.
Overview
The qualifications for a new home rebate is far and few between, and are usually left up to each independent broker. These qualifications can vary drastically between individuals, so it’s important to contact us or your preferred broker to get a more personalized response.
Contacting the broker will also give you the opportunity to inquire about their particular qualifications. It should be noted that these qualifications do not usually hold heavy weight, such as a certain credit score or income requirement.
Home rebates give you the chance to lower your closing cost and gives you the chance to invest back into the home. We are proud to say that we offer all sorts of payment methods to ensure you the highest satisfaction possible. Contact us anytime if you have any questions, we are glad to assist.