New Tool Promotes Home Affordability

COMMISSION REBATES MAKE BUYING A HOME LESS EXPENSIVE

BOULDER, Colo., June 16 /PRNewswire/ -- Commission Rebates have become the
latest tool in the knowledgeable homebuyer's arsenal. While most people are
aware that it is a buyer's market out there and that interest rates are low,
few are aware of the opportunity that a commission rebate can offer. Often
referred to as a buyer rebate, the U.S. Department of Justice has declared
that "Rebates make buying a home less expensive." Fortunately, Colorado is
one of forty states that allow the practice.

Although a rebate can be provided from a real estate broker to a consumer
under a variety of circumstances, they are most often provided in the case
whereby the broker rebates part of his or her earned commission to buyers in
exchange for the client saving the broker time. "It's a classic case of me
earning less, for doing less," says Tommy Lorden of Buyers' Slice Realty, a
new Boulder firm specializing in buyer rebates. Lorden continues, "With so
much information now available online, many of today's consumers actually
prefer to do most of the search themselves, bringing me in later to nail down
the deal of their choice."

Akin to the limited service agreements that have proliferated on the sell side
in recent years, such as with flat fee MLS listings, buyer rebates essentially
allow a buyer to pay for only the services they need. And while some buyers
may think they are not paying for the commission because it is customarily
deducted from the seller's proceeds, Lorden points out that "most sellers
consider the cost of commissions when they set their price, so buyers
effectively pay for the commissions by way of a higher sales price."

Rebates can mean thousands of dollars in savings to the homebuyer. For
example, under the traditional full-service brokerage model in Colorado, which
is based on a 6% commission, the broker who brings a buyer is typically
offered a 2.8% cooperating commission, which would equal $8,400 on a $300,000
home. If the buyer's broker offered a 50% rebate to the buyer, that'd be
$4,200 back in the pocket of the buyer. Not too bad for doing some leg work
that many of us may likely be doing anyway.

If you'd like to find more information and/or use a calculator to see what you
could save on your next transaction, visit the Department of Justice's
website.

For more information, contact: Tommy Lorden / slicerealty@gmail.com /
303.376.6111

SOURCE Buyers' Slice Realty

Tommy Lorden of Buyers' Slice Realty, +1-303-376-6111, slicerealty@gmail.com