I am looking to buy my first home. A friend used a realtor that provided a buyer rebate.

Wondering if it is worth it to go that route and try to find a local realtor that does that too. I don't mind doing some legwork (looking at houses myself etc.) but still want to get a good deal and good expertise.

Thanks.

 

Timothy,

Buyer rebates is a touchy subject. Nobody likes to discount their work so you will see a lot of agents hesitant to offer a rebate. You may also want to check what is the legal way to handle rebates (I think in some states it is not even possible).

That being said I think a buyer rebate could make sense for some buyers and agents and be a win win for both parties. Here are some things to consider
- find an agent with expertise - the deal you can get on a house if you use a true professional will dwarf any rebate you get so don't go with someone not experienced just because they are willing to offer a rebate
- negotiate upfront (sign a document) how the rebate works - typically the amount of the rebate will be tied to the number of houses you are shown by the agent (time=money)
- be ready to do some of the legwork - drive to houses you and your agent have identified and pinpoint only the ones you are truly interested in; do your own searches on the internet and even do home valuations (if experienced enough)

Hope this helps.

thanks for the info - I am ready to do some legwork although I am a bit scared to buy in this market conditions.

what do you think a reasonable rebate is?

With any product or service, you get a 3-legged stool:  Quality, Price, and Service.  If you take away any of the three legs, you have an unstable stool. 

 

Get a good agent who will work hard to get you the best price possible instead of a rebate. You will come out ahead

Being a real estate broker in Oregon, I have never in 21 years heard of a rebate from a buyer's agent. Where is that acceptable and how does it work?

John Crook GRI, SRES
Broker