Rebates can be a little trickier with a new home. Most people think that an agent earns a coop commission for a new home. In reality what most developers do is award a referral to an agent who registers a buyer who buys a new home. However with that referral fee are tighter restrictions that the referral that goes to the agent must not be distributed to the buyer. So generally the rebate back to the buyer on a new home is done outside or after escrow. Expect to be 1099’d on that income. However it is still pretty nice money right? Are you gonna turn down 10k for instance if I tell you I have to 1099 you at the end of the year? Heck no.
Anyways you may ask what good is the agent if I already have a new home picked out… well that is a good question. Perhaps not much. However if you go to the sales office and say give me the new home for the sales price minus the referral fee it is quite unlikely they will. I guess maybe it depends on the development. If you have already have picked out a home, that is, if you already registered with the builder it is a moot point. Even if you bring an agent with you the sales office will go no sir, and turn the agent away.
