Frequently Asked Questions by Buyers

Buyer Representation FAQs

1. Can I really get a rebate – up to 1% back – for buying homes?
2. How much of your commission will you share with me?
3. Can you show me homes listed by other REALTOR^® brokers?
4. For what can I use the money you share with me?
5. How much of a rebate can I get for buying a builder’s new construction home?
6. Will using a REALTOR^® agent to buy new construction hurt my negotiating position?

If you have other questions, or would like additional clarification, feel free to contact us. We will be happy to answer any questions you have.

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Can I really get a rebate – up to 1% back – for buying homes?

Yes, you can!

How does it work?

Home sellers, builders, and other brokers generally offer commissions to licensed real estate agents for bringing them buyers. Unlike other brokerage firms, we generally SHARE our commissions with the buyers we represent!

How can we afford to do this?

First, rather than “driving neighborhoods” and finding out a buyer’s search criteria as we go, which may take a very long time to determine, we have a systematic process for collecting this information. Doing so significantly shortens the amount of time we spend looking for homes. When our time is reduced, we can afford to share our commission!

Naturally, if an agent spends an enormous amount of time representing a buyer on a home and barely receives any commission after rebating 1% of the home’s sales price back to them, our agents couldn’t afford to stay in business. Therefore, to ensure a win-win for everyone, we have established minimum commissions for our agents based on the total commission offered by the seller and the total time our agents spend representing a buyer.

Is sharing our commission with buyers legal?

Most states, including Illinois, allows licensed agents and brokers to share/rebate their commissions with sellers and buyers of real property. This money may be used for any lawful use, including closing costs, prepaid taxes and insurance, or anything you want!
While some lenders and lending programs, technically, do not allow agents to “share” their real estate commissions with them, our agents can usually get around these restrictions by working with the listing agent to accept a lower buyer’s agent commission in exchange for either:

• The seller contributing cash towards the buyer’s closing costs and/or prepaids
• Lowering the sales price of the home

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How much of your commission will you share with me?

We share up to 1% of the sales price of the home with our buyers! The exact dollar amount you will receive is determined by the following factors:

• The sales price of the home you buy
• The total commission offered by the seller to to buyers’ agents
• The total amount of time we spend working with you through closing
• Our minimum commission guidelines
• Any limitations your lender may have

See examples of how much you can pocket!

(*3% buyer’s agent commission assumed. REALTOR^® bonuses (prizes, etc.) are typically not shared with clients. DISCOUNT-REALTOR^®‘s minimum share of any commission offered to buyer brokers is typically the greater of $1,750 or 1.75% of the final sales price. The cash rebate received from our commission-sharing program may vary by the commission offered to buyer brokers. Terms and conditions apply. Amounts subject to change without notice.)

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Can you show me homes listed by other REALTOR^® brokers?

Yes! As fellow cooperating members of the National Association of REALTORS^®, we can show and sell the homes listed by other local REALTOR^® brokers just like they can show and sell the home you list with us to their buyers!

However, unlike other REALTOR^® brokers, DISCOUNT-REALTOR^® shares with you up to 1% of the sales price of the home you purchase through our brokers!

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For what can I use the money you share with me?

You can use the money for practically anything you want! Really! Window treatments, furniture, moving costs, closing costs, pre-paids, etc.

Some lenders (e.g. FHA) limit the use to closing costs and/or pre-paids, but it is cash just the same!

Click here to see our buyers’ top ten uses of their rebate at closing.

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How much of a rebate can I get for buying new construction?

The commissions that builders offer are generally very competitive with existing home sales. As a result, we can usually share up to 1% of the sales price with you!

See examples of how much you can get!

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Will using a REALTOR^® broker to buy new construction hurt my negotiating position?

No!

Contrary to popular belief, builders won’t reduce the sales price of a home by cutting out a broker’s commission. REALTOR^® brokers’ commissions are built into the price of the home and are reserved exclusively for licensed brokers.

Why? Builders want to offer consistent pricing to everyone – especially REALTOR^® brokers who bring them a lot of buyers!

Our commission sharing service is even better in that you get A REBATE at closing!
Think about it. You can use the rebate for anything you want – closing costs, moving costs, window treatments, furniture, etc! Isn’t that a lot more flexible – and fun? Some loan programs have some restrictions (e.g. the commission amount shared must be used for closing costs and/or pre-paids), but it is still treated like cash!

If you do not use a REALTOR^® broker to represent you, you also will not benefit from their experiences with builders in your area.

Warning: If you visit, or register with, a builder without contacting us first, the builder may disallow a real estate commission and you will lose your opportunity to pocket up to 1% of the sales price! Don’t forfeit your chance! CALL US FIRST!

Also, if we have referred you to a builder, please tell the builder we referred you and let us accompany you on your first visit. If you have already met with the builder, but have not signed a sales contract, we MAY still be able to help you, but it will be up to the builder to decide. Call us at 309-676-8888.

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