Texas New Home Construction and Realtor Rebates

Purchasing a New Construction Home 

Receive a 2.5% Realtor Rebate for purchasing a newly constructed home in Austin, TX and surrounding areas. Since I am a licensed Real Estate Broker, in the State of Texas, that means I am licensed to practice Real Estate in all cities in the State of Texas, including Austin, Round Rock, Westlake, Lake Travis, Buda, Kyle, Pflugerville, Georgetown, Dripping Springs, Cedar Park, Leander, Bastrop, Manor, Hutto, Wimberly and throughout the State of Texas.

As a Real Estate Broker, a real estate investor and being awarded by the Austin Business Journal as a top producer we take pride in providing a quality service and saving our clients thousands of dollars. Also, having a New Home Sales Agent Certification (NHSAC) allows us to use this knowledge in helping clients with the purchase of their new home construction while giving a large rebate.

It would be foolish not to use us and get the rebate!

Are Rebates Legal? 

Real Estate agents are allowed to give rebates to their clients, according to the U.S. Department of Justice. Check out the Department of Justice website https://www.justice.gov/atr/rebates-make-buying-home-less-expensive 


Meeting with a New Home Builder

Be sure not to sign a contract before you tell them you have a realtor. The new home builder must be notified that we are representing you.

What is the Process?

Contact us for your new home buyer paper work and we will do a Rebate Agreement with you before you sign a contract with the Builder. You will need to present them with a copy of the required Notice of Buyer Representation form that we will fill in and explain to you.

Before you sign any contracts with the builder’s sales associate you must let them know who your realtor is, Cheryl Crawford, License #456419, and who we are with - Crawford Realty, Inc. License# 9005853, email: cherycrawfordSold@gmail.com and phone number: 512-785-1095. This will be included in the contract.

It is best to tell the builder that you are receiving a realtor rebate AFTER the negotiations of your contract.

Once the contract is signed with the builder, you will give a copy to your lender and must tell them you will be receiving a rebate, unless this is a cash transaction (then there is no lender). This is done every day, so don’t worry or think the builder or sales person will be offended or charge you more for the house because you have an agent. 

Will the Texas home builder charge me more if I have a real estate agent?

No! The commission is built into the sales price, no matter if there is a real estate agent involved or not, they consider it part of their marketing costs. Paying a real estate agent is a lot cheaper than other forms of advertising, which do not always guarantee sales.

How are Commissions paid to the real estate agent?

New home builders usually pay the 3% commission on the sales price of the home. There are some builders that pay commission only on the base price. In other words, if the base price is $300,000 and you add $20,000 in upgrades etc., they will only pay the commission on the $300,000.

The Builder has the commission included in the sales price. The builder’s salesperson gets paid the same whether there is an agent or not. They need agents to help get their properties sold and that is why they offer a commission. It is often cheaper than paying for other advertising costs. Because we try to save our clients’ money and don’t have the overhead that a lot of Real Estate Companies have, we can afford to give you the biggest portion of our commission...2.5%.

How are rebates paid to the client?

The rebates can be used towards closing costs, discount points to buy the interest down, down payments, one year of HOA dues, price reductions and upgrades, or

All rebates must comply with TRID the TILA / RESPA Integrated Disclosure Rule. TILA is the Truth in Lending Act and RESPA is the Real Estate Settlement Procedures Act, Rebates must be disclosed on the closing disclosure as a realtor contribution. Therefore, no rebate will be paid after/outside closing.

Are Rebates taxable income?

Real estate commission rebates are not taxable income, but do reduce your home's basis. Rebates are not reportable. A letter ruling by the IRS has issued that refunds by a real estate broker of commissions are not taxable income. The buyer would treat the refund as a reduction in the cost of the property. See PLR 157111-06 (https://www.irs.gov/pub/irs-wd/0721013.pdf). It is still advisable to consult with a tax attorney or CPA.

 

If you have questions please call us at 1-512-785-1095.