Can I get a real estate rebate when I build new construction?

Real Estate Rebates come from the commission that is typically paid by the seller or builder.  Since real estate agents sell most of the new construction homes for builders, there is almost always commission factored into the pricing of the builder.  So, the answer is yes, in most cases you can get a rebate when you are building new construction.

You must be working with an agent that their brokerage will allow them to pay you the rebate, and, that agent should be with you preferably on your first visit with the builder you elect to build with.  This is extremely important since the builder’s representative will likely ask you if you are working with an agent.  If you say no and you sign paperwork, it may be very difficult to bring in an agent later.

Remember that having an agent on your side can help you save money, not only by getting a rebate, but, in negotiation of the price and features of the home you build.  So, find an agent that will allow rebates well before you are considering meeting with a builder, to position yourself to be ready to move forward and get a rebate.

Agents love working with new construction buyers since the process is fun and to be honest with you, it can sometimes be less work for the agent than helping a buyer buy an existing home.  Once the purchase agreement is complete and pricing negotiated, etc. the buyer is the one that is picking out carpet, colors, appliances, etc. so the buyer does a lot of the work without the agent.   However, a real estate agent can help you make decisions in the process that can save you money and/or headaches down the line.

Since the builder pays the agent representing you in most instances, having that agent there to help you to negotiate, plan, coordinate and have a successful closing is priceless, and ends up costing you nothing, plus you get a rebate in the states that allow it.  A true win-win for having an agent on your side.  Remember that the agent representing the builder, sitting at the open house or model home, represents the builder, looking out for their best interests, not yours.