An Opportunity to Save Money When Buying a Home

Are you thinking buying a home? Here’s an opportunity to save some money. Everyone likes to compare the best value when shopping, and take advantage of specials in order to save money, why pay more when you buy a new home?

Home builders may offer what is called a broker co-op, which is a sales commission offered to a real estate agent as an incentive to show clients their new homes. The sales commission may range from 3% to 4% of the sales price.

Many real estate agents are now offering to share their commission with their home buyer clients. A buyer can hire an agent to represent them, in exchange for a share of the commission paid by the home builder.

The amount of money that a home buyer can save, depends on the share of the real estate commission, which is negotiable with the agent, and the sales price of the home. For example, buying a new home with a sales price of $500,000, with a 1 1/2% share, would save the buyer $7,500.

The buyer can receive a check at the close of escrow, or the money may be applied to the down payment or closing costs, providing there are no restrictions from the mortgage lender, or state laws that regulate real estate transactions.

Most new home builders don’t usually advertise a broker co-op offering, so the buyer, or the buyer’s agent would have to ask. The new home builder may have a requirement for the buyer’s real estate agent to be with them when visiting the office, or signing paperwork to buy a new home, so be sure to clarify the rules. A little time spent on research could mean a lot of money saved on your real estate transaction.

 

Information on home loans, refinance loans, also, information on new homes San Diego


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