Is a rebate on the broker fee legitimate?
by Jacques Ambron
Feb 02, 2021 | 5367 views | 0 0 comments | 682 682 recommendations | email to a friend | print
Jacques Ambron is executive director of sales for Brown Harris Stevens Forest Hills, LLC.
Jacques Ambron is executive director of sales for Brown Harris Stevens Forest Hills, LLC.
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Q: I keep hearing about brokers offering to pay me a rebate at closing or offering me a discounted broker's fee. Is this legitimate?

A: It is legitimate, however it is important to note their fine print. In most cases, you will end up paying a fee anyway, and so you may as well work with an experienced broker who will provide you with full service, i.e., advertising, multimedia, and greater effort on your behalf.

Otherwise, you may end up getting less service while paying for it anyway. There’s an old saying you get what you pay for, so why not make sure you really do get what you are paying for.

Q. What does "time is of the essence" mean in a contract?

A: You should discuss this with your attorney, but what this refers to is the actual closing date of your sale. Most contracts allow for a 30-day “grace” period to close, which means you have an additional 30 days in the event the closing can’t take place on the specified date.

With "time is of the essence," you don’t get the grace period. You must be prepared to close on or before the date specified or risk penalty.

I don’t generally recommend signing this type of agreement as there are so many factors that go into a sale, particularly in these pandemic times, but sometimes it may induce the other party to accept your deal over another.

Send your real estate-related questions directly to jambron@bhsusa.com.
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