Rebate to buyer

[donaldduckmoore]

Is rebate given to buyer by seller prevalent in the current RE market? I know there is no standard but what is the most popular rebate calculation in the market? Say a $600k house is on sale, what would be the likely rebate to the buyer? Is cash rebate popular?

[jennyo]

We are doing a 3 percent cash rebate on the sale of an inherited home that needs a great deal of work. The buyer asked for it in his original offer and we countered with a higher sale price and an agreement to provide the rebate, which the buyer accepted. Not sure if it is typical or prevalent in this market, though. The only thing that appears prevalent in this market is seller desperation, which would certainly lead to concessions like cash rebates.

[donaldduckmoore]

Is cash rebate legal?

[SD Realtor]

If you are buying and you wish to ask the seller for a credit for recurring and/or non recurring closing costs then there is never any harm in asking. Make sure it is documented properly in the purchase agreement or an addendum so that the lender knows what is going on. I do not believe the lender will be agreeable if the credit is more then 3%. There have been cases where the credit can exceed that amount but that would imply that portions of the credit were for repairs or upgrades. In that case those extra credits may be held back by escrow to be paid directly to the contractor who does the work. Also I have not seen cases where a buyer walks away with cash after the credit. In cases that I have seen where the credit from the buyer exceeds all of the closing costs for the buyer, I have not seen the lender allow the buyer to walk with the excess credit in cash.

I do recall some posts where people said that had seen that occur so go figure.

SD Realtor

[Raybyrnes]

Redfin.com, buysiderealty, costco all offer rebate services. Why not benchmark yourself of these services.

[Author]

Posts