New Construction Home Rebates
REBATE REAL ESTATE IN TX
Serving the Austin Area and All of Texas!
Texas New Home Construction and Realtor Rebates
Purchasing a New Construction Home in Texas
Receive a 2.5% Realtor Rebate when you purchase a newly constructed home in Austin TX and surrounding areas. As a licensed Real Estate Broker, in the State of Texas, I am qualified to practice Real Estate in all cities statewide, including Austin, Round Rock, Westlake, Lake Travis, Buda, Kyle, Pflugerville, Georgetown, Dripping Springs, Cedar Park, Leander, Bastrop, Manor, Hutto, Wimberly, San Marcos, and more.
As a Real Estate Broker, with a New Home Sales Agent Certification (NHSAC), I leverage my expertise to assist clients in purchasing their new construction home while offering a substantial rebate. At Crawford Realty, Inc. we take pride in providing a quality service and saving our clients thousands of dollars. It would be disavantageous not to use our services and benefiting from the rebate!
Are Rebates Legal?
Yes, real estate agents are allowed to provide rebates to their clients, according to the U.S. Department of Justice. You can find more information on rebates on the Department of Justice website https://www.justice.gov/atr/rebates-make-buying-home-less-expensive
Meeting with a New Home Builder
To ensure a smooth process, inform the newe home builder that you have a realtor before signing any contracts. The builder must be aware that we are representing you.
1. Contact us for your new home buyer paperwork and we will prepare a New Home Rebate Agreement with you before you sign a contract with the Builder. You may need to present them with a copy of the required Texas Real Estate Commission (TREC) Notice of Buyer Representation form that we will fill in and explain to you.
2. Before signing any contracts with the builder’s sales associate, make sure to disclose your realtor's information: Cheryl Crawford, License #456419, and the name of the company Crawford Realty, Inc. license# 9005853. You can reach us at cherylcrawfordSold@gmail.com or by phone at 512-785-1095. This information will be included in the contract.
3. The builder and lender are required to know that you are receiving a realtor rebate. By law, lender's are loaning federal money and must be aware of any contributions.
4. Once the contract is signed with the builder, provide a copy to your lender and inform the lender about the rebate. If it's a cash transaction, this step is not necessary. Don't worry about additional charges from the builder for using a realtor; it is a common practice. If this is a cash transaction (then there will be no lender.
Will the Texas home builder charge me more if I have a real estate agent?
No! The commission is already included in the sales price, regardless of whether a real estate agent is involved. Builders consider it part of the their marketing costs. Paying a real estate agent is often more cost-effective than other fomrs of advertising that don't 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. For examply, if the base price is $300,000 and you add $20,000 in upgrades, the commission will be calculated on the $300,000 base price. Some builders only pay 2% or less commission. You will need to find out. Our commission will be .5%. If there is a bonus (i.e., 4%) we will split the difference with you. You will receive 3% and we will receive 1%.
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 various aspect of the home purchase, including closing costs, discount points to buy the interest down, down payments, one year of HOA dues, price reductions and upgrades or whatever the builder and lender allow. However, it's important to note that all rebates must comply with TRID (TIL/RESPA Integrated Disclosure Rule. Tila is the Truth in Lending Act and RESPA is the Real Estate Settlement Proocedures Act. Rebates must be disclosed on the closing disclosure as a realtor contribution.
Are Rebates taxable income?
Real estate commission rebates are not taxable income, but do reduce the basis of your home. Rebates are not reportable. A letter ruling by the IRS has issued that real estate refunds by a real estate broker's commission 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). However, it is recommended to consult with a tax attorney or CPA to address any specific tax-related concerns.
If you have questions about Rebate Homes in TX, please call us at 1-512-785-1095.