When it comes to buying a new home, many people find this to be the most capital intensive purchase they make in their life. For that reason, saving a couple of percentage points can make a real difference. That is why, for those in Florida, taking advantage of the a home buyers rebate can leave you being able to get the house of your dreams for cheaper or, better still, being able to buy a new home that you otherwise would not be able to afford. Why Offer a Rebate? Real Estate Agents offer a rebate because it gives buyers an incentive to choose them, rather than an alternative real estate agent. It is also the case, that when some real estate agents start offering rebates, that the other real estate agents will inevitably follow. At the moment, you can take advantage of a buyers rebate, by ensuring that you choose a real estate agent that is willing to sacrifice their profit margins, to ensure that they get more customers, and happier customers. Where Does the Money Come From? A rebate is called a new home buyers rebate for a reason – it can only be reclaimed on new homes. When a building company completes a development, they are looking to sell as much property as they can, as fast as they can. In order to do this, they try and give the real estate agents an incentive to ensure that they do whatever it takes to shift their new property. That is why they offer real estate agents 3% off of the value of the property. Now, you may ask yourself what happens with that 3%? Well, before it would go into the deep pockets of the real estate agent, however now some real estate agents have decided that they will only take 1% and give the other 2% back to the person who is buying the house. The reason for this is that, people are more likely to go with a real estate agent who is offering a 2% cash rebate and real estate agents are making similar margins than they do at the moment, when selling houses that have already been lived in. Why Buy Now? Now, is a better time than ever to buy real estate in the Florida area. Not only will you be able to save money now, but you will not able to into the future. Why? The reasons are two fold. Since real estate agents are showing they are currently being overpaid, by having so much money to give back to their customers, the development companies may end up reducing the price that they pay out – meaning, that you will not be able to get a rebate. The other reason is that, as more people hear about the rebate, property prices will continue to rise until such time as we reach an equilibrium – which means that nobody will save anything and real estate agents will end up with weaker margins.
Source: http://www.ArticlePros.com/author.php?Doug Lasley
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