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Cash Rebates from Hightower Realty

So is the practice of offering cash rebates legitimatel? In most states, including Florida, yes it is. In fact the federal government encourages it as a way of making housing more affordable to buyers. The Department of Justice refers to these cash refunds as rebates, typically cash payments from the real estate broker to his or her client after closing. If you are financing your purchase you will need to declare any cash rebate to your lender. There are guidelines and restrictions to a third party contribution based on type of loan, loan to value ratio. Not declaring the arrangement is a form of mortgage fraud, so don't take that risk.

Can you get a better deal from the builder if you go directly to them without a buyer's agent? Absolutely not. Developers appreciate the added value that buyer's agents bring to the table, and they will never offer a buyer a better price or bigger incentives to work directly with them.

Cash rebates to buyers work particularly well for the developers of new vacation home communities, and they offer generous commissions to buyer's agents to encourage the practice and to make sure that their buyers are represented by an agent when they walk through the door. Why are buyer's agents so important to these builders? Firstly, buyer's agents deliver qualified and committed buyers, resulting in higher sales conversion rates and significantly lower contract cancellation rates. These agents also generate repeat business. Plus, consistent agent participation results in more even flow sales, allowing builders to plan, hire and budget more efficiently,