ABC is paid a commission representing you as a buyer. We have a contract with you that stipulates 1% of the purchase price will be credited to you as buyers at the closing. Your lender determines how the1% is applied. Cash buyers do not have this issue.
· We offer 1% of purchase price as we are able to run our virtual office less expensively.
· IT ALSO WORKS ON NEW HOMES Builders like Realtors® as we help them get buyers by selling the sellers home
· The rebate means we are the cheapest way to buy your new home
· Most of our buyers are also our sellers
· The rebate must be in the contract to purchase
· The rebate must be disclosed to the lender at loan application
· Most restrictions on rebates are because there is a new loan used to buy the house
· Rebates can be used in a number of ways, closing costs, loan or price reduction but they cannot be in cash or cash equivalent.
Depending on how you receive the rebate and how it is applied determines whether it might be taxable.
· Rebates lower the price (basis) you pay for the house
· Rebates increase your profit when you sell
· Rebates might be considered as taxable income if incorrectly handled by your tax preparer
Affordable Brokerage Company
719-574-4663 Colorado Springs
303-778-0505 Metro Denver