Rebate on New home purchases - Discuss

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The maximum discount I would expect to receive from a realtor is their entire commission, in the form of $100 bills.  Anything less would not be the maximum.  Anything more would surely exceed the maximum.

 
max discounts is the gift that keeps on giving....like the herp.

is this turnip out of blood?...nope

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I try not to get involved with non-sense threads... but I just couldn't help myself on this one. :)
 
Ahhh on a more serious note, should I invite a realtor with me to the Parasol Park 'meet the builders' event? Seems premature but I also don't want to screw up in the $$ 5 digits.
 
Rizdak said:
Ahhh on a more serious note, should I invite a realtor with me to the Parasol Park 'meet the builders' event? Seems premature but I also don't want to screw up in the $$ 5 digits.
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Don't forget to ask about the amount he will give back to you. Also, get that in writing.

#MegaDiscount
 
Rizdak said:
Ahhh on a more serious note, should I invite a realtor with me to the Parasol Park 'meet the builders' event? Seems premature but I also don't want to screw up in the $$ 5 digits.
Click to expand...

Typically the builders will require the agent to accompany the buyers starting with the vip pre-grand opening. 
 
Bring a realtor...they may start selling at the pre-grand opening.  Don't want to lose out on the rebate & phase 1 pricing if you see what you like. 

USCTrojanCPA said:
Rizdak said:
Ahhh on a more serious note, should I invite a realtor with me to the Parasol Park 'meet the builders' event? Seems premature but I also don't want to screw up in the $$ 5 digits.
Click to expand...

Typically the builders will require the agent to accompany the buyers starting with the vip pre-grand opening.
Click to expand...
 
Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.
 
Fxguy said:
Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.
Click to expand...

Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.
 
So basically it's a as good as cash with no tax is what you're saying. This will be great because I'm about to break a lease with IAC for $5620. Ouch! Not confirmed but I've been reading on here that it's two months rent! It should still leave a little bit of change left over for some new accessories for the house!  8). I appreciate your help!

USCTrojanCPA said:
Fxguy said:
Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.
Click to expand...

Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.
Click to expand...
 
Is your agent giving you a 1099 for the rebate.
#notmaxrebates

Fxguy said:
So basically it's a as good as cash with no tax is what you're saying. This will be great because I'm about to break a lease with IAC for $5620. Ouch! Not confirmed but I've been reading on here that it's two months rent! It should still leave a little bit of change left over for some new accessories for the house!  8). I appreciate your help!

USCTrojanCPA said:
Fxguy said:
Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.
Click to expand...

Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.
Click to expand...
Click to expand...
 
USCTrojanCPA said:
Fxguy said:
Hi all,

I need your help. I'm buying a new construction. Our broker agent has agreed to give us 50% of the rebate. How does this work? Would this be a credit on the final price or can we use it towards the down payment? Is it just cash? Ideally, is like it used towards the down payment.

Thanks in advance.
Click to expand...

Typically builders will not allow the agent to credit any portion of the rebate towards the buyer's closing costs or down payment (the lender won't allow for this as well).  I do my rebate via a check right at the close of escrow.  So it doesn't matter what the rebate goes towards because effectively it reduces the buyers total cash investment in the house (downpayment plus closing costs).  These rebates are tax free to the buyers and just reduce the cost basis in the home.  Don't let your agent/broker stick you with a 1099 for the rebate.
Click to expand...
While it impacts the cost basis, does the discount impact the property tax basis?  Or is the property tax based upon the full amount? 
 
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