Can I get more information on your "up to 1% cash back" (33% commission rebate) program for buyers of new and resale homes and building lots?

Contact me via e-mail billfreeman@frgnc.com or call me at 919-951-9661 or 919-338-0788

How much rebate will I receive and when will I get it?

If we represent you as your Buyer's Agent, you will receive 33% of the commission paid to our firm.  You will also recieve 75% of any "bonus" commissions (those above 3%).

For example after negotiating a low purchase price of $400,000 on a home with a 3% commission to the buyer's firm, you would receive a credit of $4,000.  If the seller was paying a $2,000 bonus (eg. for a contract before a specifiied date) and your contract met the criteria you would recieve $1,500 of the bonus commission.

The actual dollar amount will depend on the negotiated price of the house and the commission rate.  Since there aren't any "fixed" commission rates, the amount will vary from property to property.   Typical rates range from 2.4% to 3.0%, so your cash back at closing would be between 0.8% to 1.0% of the negotiated sales price.

You will receive the cash back as a "Buyer's Agency credit" on the closing statement.  It is effectively a reduction in the price and reduces the amount of cash needed at closing.

How can you afford to rebate 33% of your commission?

We do NOT cut corners and we provide full service to our clients!

However, by working with you as your partner, by using state of the art technology and by eliminating fancy overheads, we have driven costs out of our business and we pass those savings along to you.

Are real estate commission rebates to buyers legal in North Carolina?

North Carolina law permits Real Estate Firms who represent the buyer to rebate part of their commission they receive from the seller to the buyer as long as three conditions are met:

1. the Real Estate Firm (not just the agent) must allow their agents to give rebates to their buyers.  WE DO!

2.the rebate must be disclosed as a credit from the Buyer's Agent to their client on the settlement staement, typically on lines 204 to 209 of the HUD-1(3-86) RESPA form.

3. if the buyer finances the property through a mortgage broker or banker, the MORTGAGE UNDERWRITER must agree to allow the rebate. 

It is very important to recieve the mortgage broker and underwriter's agreement BEFORE making an offer on a home or before the loan application.

What do I need to do?

If any part of the purchase price is funded using a mortgage, then before making an "Offer to Purchase and Contract" on any home, the buyer needs to have the mortgage banker (or broker) AND the mortgage underwriter agree to allow the commission rebate to the buyer. 

The buyer should specificall request approval "for the buyers to receive a real estate commission rebate of 33% of the base commission paid to the buyers agent's firm and 75% of any bonus commissions paid to the buyers agent's firm"

The buyer should request the mortgage banker (or broker) to put their agreement in writing in a pre-qualification or pre-approval letter.

In the event the buyer fails to get this agreement or if the mortgage lenders do not agree or rescind their agreement, then the buyers understand and agree that the Firm and it's agents are not responsible to and are not permitted to make any commission payments or rebates to the buyer. 

How are the real estate commissions paid to the buyer's agent set in this area of North Carolina?

Each licensed Real Estae Firm has its own policies on the commisssion rates the firm or its agents charge the seller they represent and how much the listing firm and the buying firm receive.  These rates are contractually agreed upon by the Listing Firm and the owner of the property.

Most commission rates paid by the owner to the buyers agency range from 2.4% to 3.0% of the sales price.  Occasionally, sellers will offer "bonus commissions" above and beyond these rates.

Will you commit to my program in writing?

Yes. We will put the commitment in writing in the BUYER AGENCY AGREEMENT (North Carolina Association of Realtors Standard Form 201) that we both sign.  We will review this in detail during our first meeting.

Do you have a "no badgering" policy?

Our pledge to you:

• we don't badger - there is no pressure to work with us
• all information you provide is CONFIDENTIAL, we will share your information only as required by law or custom to complete the transaction
• we will enter into a Buyer's Agency Agreement only after our first face to face meeting