We’ve received a number of emails on our main site asking for referrals of rebating realtors in their region. Let us know where you’re looking and what type of rebate you’re hoping to receive and we’ll see what we can do.
Happy home hunting as we leave winter and enter into the spring buying season. Good luck and negotiate well!
We’ve received a lot of questions regarding leverage once your offer has been accepted. The truth is, you’ll want to prepare in advance for your buyer’s inspection period. Hopefully, prior to submitting your offer, you’ve touched base with your preferred home inspector, termite inspector and contractor regarding their availability. In your offer, your realtor should have built in a inspection contingency period (which ranges by region) which is customarily 10 days in the Los Angeles area. Of course you can lower that number to make your offer more appealing but that’s a different topic to be discussed later.
Now that your offer has been accepted, it’s to your advantage to schedule all of your vendors to perform their services as early as possible into the contingency period. This buyer beware or due diligence period is extremely important and is your “out” for any reason. Thus, you’ll want to make sure your home inspector is EXTREMELY thorough and will provide you with a detailed report with explanations and pictures that can be easily fowarded via email. Here is when you want to go with quality of service over price (rest assured, a quality report will generate more net savings) as these reports and data will as your leverage to negotiate seller credits.
In summary, tip 1, reach out and build your preferred group of vendors. Home inspector, termite, contractor, plumber, rooter service technician, and if necessary a topography/geological survey specialist.
Tip 2, check their availability so that they are all available as soon as your offer is accepted so you can get everything done earlier on into the inspection contingency.
The majority if our posts emphasize the importance of leverage on either side of the transaction. We can ultimately agree that reduced transaction costs and commission amounts are benefits to buyers and sellers. However, what is the impact of the other party knowing that your representative is offering a discount (either a buyer’s rebate or a discounted listing commission) incentive. Will you, on the opposing end, see their offer has having more room to move?
For example, let’s say you are a seller and an offer comes in from “Rebate Realty Group” or a known discount brokerage. Knowing that the buyer will be receiving a rebate, how does that impact your view of the offer? Do you feel they have more room to come up especially since their hard money costs will be reduced?
Or say you are a buyer and find a listing by said Discount Realty Firm, will your offer amount change knowing that they will be netting more due to reduced commissions? Will you then reduce your amount accordingly?
Leverage is key in real estate and keeping aces in your pocket are always to your advantage (on both sides). Buyers and sellers can achieve their goals but negotiating when “traditional” firms the same rebate or discounted commission, thus taking advantage of the savings without sacrificing additional leverage. Everything is negotiable, the worst thing that can happen is they say no, or you receive a counter.