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Palm Springs Desert Area
Rebates for Buyers
Buyers Commission Rebate
Frequently Asked Questions
How do I qualify for the rebate?
We ask you to do four things:
1. Sit down with us for an informal consultation. If we decide to work together, we will develop a home search game plan with you. This includes establishing your search parameters and setting you up on email auto-updates for listings that conform to the profile of your ideal home. See How Do I Get Started? below.
2. Enter into a California Association of Realtors Buyer Broker Agreement. This records your entitlement to the commission rebate.
3. Obtain a Prequalification Letter from your lender or from one of the mortgage brokers we can introduce to you.
4. Utilize the resources of eNeighborhoods and zillow.com, both available from this site. Search online using the search tool on this site at Search the Desert Area MLS and Search the Desert Area MLS for Open Houses for homes that interest you. Drive around, familiarize yourself with the neighborhoods, and identify homes of interest. Once you have a short list, we will make any necessary appointments and then show you the homes.
How do I calculate my rebate?
We will pay you half of our commission, once we have received a minimum transaction fee of $3,000. The actual rebate amount will depend on the commission offered and the purchase price. Assuming a 3% commission to the Selling Office, your rebate looks like this:
Estimated Buyer Rebate Savings
| Purchase Price | Our Commission | Your Rebate |
| $100,000 | $3,000 | $0 |
| $150,000 | $4,500 | $1,500 |
| $200,000 | $6,000 | $3,000 |
| $250,000 | $7,500 | $3,750 |
| $300,000 | $9,000 | $4,500 |
| $400,000 | $12,000 | $6,000 |
| $500,000 | $15,000 | $7,500 |
How is the rebate paid?
Your rebate is paid at closing in the form of a credit towards your down payment and closing costs. If your rebate is more than you need to cover down payment and closing costs, the escrow company will issue you a check for the difference. Some lenders and new home builders have restrictions on how rebates may be applied. In other words, you may have to accept the rebate in cash.
Is the rebate taxable?
There may be tax consequences to the rebate. We are not qualified to advise you on this. You should consult an appropriate professional for advice on tax or legal matters.
Why do you offer such a large part of your commission as rebate?
Several reasons:
1. Because people like the idea, it attracts business and reduces our marketing costs. Also we do not have a high overhead.
2. As everyone knows, there has been a huge run-up in home prices in our Desert area - far more than the rise in our cost of living. So we can share these windfall gains with our Buyers.
3. It benefits our Sellers by (through us) attracting Buyers to their listings.
4. It rewards your use of the Internet-based MLS and other technology. By using the online search and research tools on this site, you reduce the amount of time it takes us to do the research on your new home. We pass these savings on to you in the form of a rebate.
5. It rewards your legwork. Our Agreement with you asks you to do both the initial research and the initial drive by of homes and familiarization with neighborhoods. This lets us focus in on a short list of homes that really interest you and represents a very large savings in our time that we can pass on to you. Remember that our true value to you as Realtor® is our technical expertise in analysis and transactions, not our ability to drive you around the Desert. See Buyers Rebate.
Are there any restrictions on my use of the rebate?
Not by us. So far as we are concerned, you may use it for any purpose - from paying transaction costs to taking a vacation. However, you should know that some lenders and some new home builders may have some restrictions. If they do, you will receive your rebate in cash.
What happens if I buy a home where Select is the listing broker?
Then a dual agency arises. In dual agency, the Broker represents both Buyer
and Seller in the same transaction. In California real estate, even if one
salesperson in an office is working with a buyer and another salesperson in the
same office is working with the seller, the Broker of the real estate firm is
considered a dual agent.
In California a broker who acts as a dual agent in a transaction:
(a) shall treat all parties honestly;
(b) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner;
(c) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and
(d) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by State or Federal law or a court order or if the information materially relates to the condition of the property.
How Do I Get Started?
Before you sit down with us to develop your home search game plan, take time to consider the profile of your ideal home. This is going to depend on a number of factors and is best seen as a process of elimination. Here is a basic checklist and some of the thought processes necessary to help you get where you want to be:
- How much home do you want to afford? Remember, this is not at all the same thing as what you can afford. Determine a price range.
- The price range of the home will generally dictate the neighborhoods you should be looking in.
- Location. This is how you select the neighborhoods you want to be in. Your choice of location is governed by other factors, such as proximity to work, preferred city, schools, proximity to shopping.
- Style. What type of home fits your taste and lifestyle? Single story, two story? Older or newer? Ranch or contemporary?
- Amenities. Do you want a fireplace? What about number of bedrooms? Den/office? Separate dining room?
- Lot. How big? Do you want a pool?
- Neighbors. Do you want to be in a family or senior oriented neighborhood?
- Condition. Are you prepared to work with an older fixer (for less money), or do you want new and trouble-free (for top dollar).
Use the resources available on this site to help you develop your home profile. Do lots of driving. This is how you earn your rebate.
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