The answer is, it depends. Is your market extremely competitive? If so, we’d recommend viewing your real estate commission rebate as a reduction of your out of pocket hard money costs associated with buying a home. Your goal should be to minimize the amount of money you need to pay out of pocket when purchasing a home. Think of it as the opportunity cost of having $5k in hand or borrowing an additional $5k over 30 years. While your long term holding costs and interest on that $5k will translate to much more, it’s more advantageous (at least in our eyes) to have the $5k in hand now so that you can leverage that to increase your offer amount.
Besides, once you’re in escrow, you can negotiate to recoup the increase in the form of a price reduction in exchange for removing contingencies throughout the process.
Thoughts anyone? It depends on the situation, but it a competitive market, usually the most important part of the offer is the price. End of story.
Thoughts? Email us at firstname.lastname@example.org
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