All Forum Posts by: Account Closed

You simply need to partner up with realtors in Dallas who offer Realtor Rebate.

How to find them?

Google this: Dallas Realtor Rebates (480,000 results)

Interview a few to find one or two you like, then work with them to help you accomplish your goals.

Just DO NOT take them for granted, make sure they get compensated for their time and effort and a good way to do this is to refer them Listings and serious Buyers!

Realtor Rebates or Buyer’s Agent Credits

Realtor Rebates or Buyer’s Agent Credit can be a Massive Savings for Consumers! In addition to shopping for the best rate, terms and lowest costs on a Mortgage Loan, educated consumers are now shopping for the best Realtor Rebate as well.

Realtors located all over the state of Florida as well as 39 other states offer Consumers Great Service as well as Realtor Rebates to pay for closing costs and/or:

pay for separate Attorney representation

pay for Interest Rate Reduction

pay for Gift Card; Home Depot, Lowes

pay for rental car for buyers while in FL

pay for plane tickets to FL to shop

pay to eliminate PMI

pay to buy out remainder of lease

pay towards down payment

pay for the 1st full year of home ins.

pay for taxes and ins. escrows

pay for a Home Warranty

pay for home repairs

pay off credit card debt, auto loans, etc.

pay off collections and judgments

pay for new furniture

pay for all new appliances

pay for home remodeling and additions

pay to have home painted

pay for weekly pool maintenance

pay for credit repair

pay for landscaping

pay for monthly lawn care

pay for new A/C system

sales price reduction

pay portion to prior realtor for their efforts

…and so much more!

The U.S. Department Of Justice has created a complete website (see below) dedicated to educating Consumers about the substantial saving available to them in now 40 states through Realtors who offer Consumers Realtor Rebate Savings.

To see how popular this savings is becoming, Google search: REALTOR REBATES to find thousands of very Professional and Kowlegdable Realors willing to offer Consumers this savings.

Below are estimates on different purchase prices of Realtor Rebates or Buyer’s Agent Credit that Consumers can obtain:

150K = $1,500 (Rebates)

200k = $3,000

300k = $5,000
400k = $8,000
500k = $10,000
1m = $20,000

It truly is a great way for Consumers to save thousands!

or do an Umbrella Policy for CYA.

May want to weight out the extra coverage that an Umbrella Policy could offer in other areas vs. just do the LLC thing.

LLCs and Umbrella can be double the protection

Poor Mouthing your offer can make you lose the home!

In today’s market, where so many loans fail to close for many reasons, if a Seller, Bank or Listing Realtor is trying to choose the offer that has the best chance of actually closing, which offer do you think they would choose?

Example: $500,000 List Price

Offers:

1. $480,000 offer with a pre qualification letter for $480,000 (i.e. Poor Mouthing the Offer) and a $1000.00 just written in the deposit line on the offer.

1. $490,000 offer w/seller to credit $12k towards buyer’s closing costs with a pre qualification letter for $750,000 with a copy of a deposit check of $15,000.

Sellers, Banks and Listing Realtors would contract with offer #2, where the buyer can clearly afford the purchase, backing it up with a substantial Good Faith Deposit which shows they’re serious buyers. The Seller may net a little less on offer #2…but it’s far more likely to close, and that’s all that matters now days!

The strategy of what’s called “Poor Mouthing the Offer,” where buyers try to act as if they can barely afford their offer in effort to get a lower price is a Flawed Strategy for this market! This is why many buyers lose bid after bid with their offer not even being considered and cut from the running early on.

Sellers, Banks and Listing Realtors already assume that pre qualification letters are stretched to the max anyway. Therefore, they look for the Sure Thing, the most solid deal that has the best chance of closing…Period! To take a chance on contracting with a buyer in this market that can barely afford the home to begin with is too much of a risk.

Few ideas:

1. ask for 2 or 3 extra months rent up front, 1st months, and the other 2 or 3 months are written up to me applied to the LAST 2 or 3 months of lease

2. ask for a bigger upfront deposit and if after 6 mo. they pay on time, then refund a portion

3. make it where there is an EPD (Early Payment Discount) if rent is received early, the day BEFORE the 1st day of the month, but late with penalty if Received past the 5th.

4. make the rent higher for the 1st 6 mo., then if they pay perfect, it drops for the remainder of the lease term

....And about 20 other ideas, but you get the picture

Roger that, understood.

In FL, the difference to the seller for the increased sales price is only about $13.00 per thousand.

The seller pays the Doc Stamps on Deed and Owners Policy in most counties in FL, except for like Broward, where its customary for the seller to only pay the Docs Stamps on Deed.

So in most counties, for every $1,000 in higher sales price it only costs the seller $7.00 for docs stamps on deed and about $5.00 to $6.00 in Owner's Title Policy, therefore my above example of paying $10,000 more only cost the seller about $130.00 more.

That is unless the property is not homesteaded and/or the seller has to pay Cap Gains tax, then of course the sales price would need to be structured in a way to compensate.

But getting past these intricacies, in General, if realtors and loan originators, they will give their buyer more loan options and better ensure more deals close.

Steve,

Not sure what RTT stands for, it is an acronym for Realtor Commission?

Steve,

This is for borrowers who either wish or need to minimize their out of pocket money at closing.

example:

$300,000 sales price:

$290,000 Offer

...or

$300,000 Offer with $9,800 seller concessions to pay buyer's closing costs

Basically the same $290,000 Net to seller

Reasons to structure offer with seller credit for closing costs in Lieu of discount off list price

This is simply a Paper Credit. Its not as if the Seller is asked to bring a separate check to closing to pay the Buyer’s Closing Costs. Keep in mind, if a seller is willing to reduce the list price by even one dollar, then they’ll just as easily credit that dollar towards the buyer’s closing costs as they still net the same.

To reach a lower LTV (Loan To Value) to qualify

The buyer will have more money to put down to lower the LTV level if the lender requires another 5% down to meet DTI (Debt To Income) ratios or may enable the buyer to qualify for more loan programs at a lower LTV level.

To meet Reserve Requirements to qualify

Most loan programs require a certain amount of reserves (money left in the bank after closing). Also, may help the buyer qualify for better terms by showing extra reserves, thus making them a lower risk.

To have more money available to Pay Off Debt to qualify

The buyer could then use the money that would have gone towards paying closing costs, to instead pay off debt if needed before closing to lower their DTI to qualify.

To have more money to use for Rate Reduction

The buyer will have more money available to buy down the rate if required to qualify for a loan program due to DTI (Debt To Income) ratios.

To help increase the Neighborhood’s Home Values

Other sellers in the neighborhood can then use the higher sales price as a comparable sale to list and sell their home at an even higher price which will increase the neighborhood’s value (i.e. Appreciation)

To be able to pay for taxes and insurance when due after closing

The buyer will have more available money to pay for taxes and insurance when they are due if not escrowed.

To pay lower Capital Gains Tax when selling the property

If the buyer resells within the first year or turns it into an Investment Property, the buyer pays up to 25% Capital Gains Tax on the profit between the Purchase price and the Sales price when resold. Example: approx. $1,250 tax savings per every $5,000