Real Estate Cash Backs – Cash Back Reality

Rebates, commissions, discounts, allowances, incentives, and reduced prices are strategic marketing techniques that entice people to buy a product. Similar is the case in real estate deals as well. These criteria are used to dispose of unsold inventory from time to time. The hidden agenda here is that prices are not actually being reduced. However, the bill is paid. Similarly, real estate agents have conjured up ways and means to sell and buy homes through novel marketing campaigns.

Currently, throughout the United States, the real estate market is paralyzed by the recession. Numerous properties are available for sale with no buyer in sight. Therefore, the best thing that the real estate agent can do is to attract the prospective clients by offering them massive discounts. These fantastic offers should be taken full advantage of. In fact, this is a great way to get some of your well-earned money back.

Although this practice is allowed by most states, there are at least a dozen of them that consider it unethical and have banned it. Honest real estate agents who have been in the field for over half a century do not believe in allowing discounts on the purchase and sale of homes. In the same coin, there is an alternative set of real estate agents who go all out and offer very attractive incentives to their clients once the deal is closed.

Typically, a portion of the handling agent’s commission is paid to the buyer two days after signing the deed of transaction. Cash back ranges from one to an astonishing fifty percent, and buyer and seller representation are paid around seven percent of that. In reality, what is really happening here is that even though the real estate agent is making less profit from the deal, his business is increasing tenfold through the populist measures he has adapted. In addition, he or she also gains a lot of business goodwill.

An important thing to keep in mind here is that if the allowance is offered before the deal is closed, it does not become taxable. However, if the same is allowed after completion, the amount becomes taxable. All these aspects must be seen before signing on the dotted line. The Internet, with its vast matrices of information, will guide you on how to carry out this exercise favorably. Cash back is all the rage these days. So don’t waste time and go for that extra money with which you can buy something worthwhile.