It’s hard to remember, but not all that long ago, no one used the Internet when they were house hunting. There were no articles educating buyers about all the different aspects of getting a mortgage, interviewing agents, or how Utah real estate commission rebates work. Instead of carefully filtered searches, there were real estate magazines and ads in newspapers. Realtors spent a lot of time educating their clients, as well as researching homes to show them, and going on tours of sometimes dozens of houses until they hit upon The One. This laborious process could take months.
The Internet has completely changed the game. Open houses, print ads, postcards announcing “Just Listed” properties have pretty much gone the way of the dodo. With the advent of Realtor.com, Zillow, Trulia, and our own websites, brokers are able to list, advertise, and sell houses in weeks or even days, not months.
Buyers have transformed, too. Most have read up on the different aspects of buying a home. They’ve been looking at the big aggregator sites, refining their search to include only the neighborhoods, price range, and size they need. When they contact a Realtor, they’re focused on a few homes to tour. They need some guidance on the minutiae of the rules and contracts that go with closing the deal on their new house.
One thing that hasn’t changed much is agents’ commission. It’s usually around 6%* of the selling price of the house. The buyer’s agent and the seller’s agent split the amount. This seems unfair to me. The fact is that the buyers have done half the work that goes into buying a house, so I think they deserve half the reward. So I share my commission with the buyers.
The technical name for a share of commission is real estate rebates**. As a Utah discount Realtor, I split the commission down the middle with you, my client. Here’s how it works:
1. Discount Agent provides all the services a full-priced broker does. I’m your Utah discount real estate agent, so I go to bat for you, negotiating, closing, and getting necessary documentation.
2. When the sale closes, the commission will go to the brokerages the buyer’s and seller’s agents work for. My brokerage is NetLogix Realty.
3. To cover expenses, NetLogix Realty will take a small brokerage fee. Then you get one half of the buyer's commission as a Utah real estate commission rebate, and I get the other half.
When the home purchase is finalized, you’ll get a check for the same amount I do. And the really cool thing is that the IRS counts real estate rebates as untaxable income. This is because the taxes are rolled into the house’s selling price. You have a nice fat check to spend as you need.
Sellers who work with me get the same discount as buyers. When we work together to sell your house, I focus on the most efficient way to sell your house. I’m a full-service real estate broker, so I can handle everything from negotiations, closing, and getting necessary documents. I focus on online advertising, since that’s the way people look for houses.
Your listing goes on the national and local house searching websites. It’s pretty cheap and easy to get exposure for your house. We don’t do print ads or open houses, which saves a ton of money. I’m your representative for showings and negotiations, and I take care of all contracts for you. Your job is to stage your house so it looks its best. You and I will work together to come up with the right price. Since so much of the work of selling is automated with online tools, we get a wider reach with less work. This means I can discount as much as half of my commission when you list your house with DiscountAgent.com.
Both buyers and sellers get the advantage of rebate money to use however you want. Pay the first couple of mortgage payments, get started on upgrading or remodeling the new house, pay down other debts, go on a vacation...the sky’s the limit.
It seems obvious to me that since find a house and marketing it have changed so much, home buying and selling should change, too. The Internet allows brokers to focus on ways to reach the most people. So many of our processes are automated, which means we Utah discount real estate agents close on houses faster and more efficiently. We can offer rebates while still providing all the services clients need and expect. It’s the most straightforward way to do business.
* I use 6% because it’s a common amount. However, commission and the way it’s split between agents can be negotiated.
** We have to make certain disclosures. The main broker of the seller’s real estate brokerage must be informed about the rebate. If the house is for sale by owner, we disclose to the seller.
With Discount Agent, the seller keeps more of their equity.
With Discount Agent, the buyer receives a commission rebate.
This was my first home and Aaron made the process seem effortless. He kept me up to date on the whole process and guided me through what was a good buy and what was not. I'm completely satisfied with our purchase and if I need to sell or buy again I wouldn't use anyone else.Aric Evans
Aaron has been a crucial partner during our home buying process. He understood our requirements, and suggested us very relevant properties. He kept us informed about the market conditions and helped us negotiate during the offers. He explained the process of home buying to us in very simple and effective way. When we ended up building the home through a builder he helped us all along the way to resolve the concerns with the builder agent, and also helped us during the final walkthrough and closing. Once you close with him he provides the incentive back to you, which is very significant amount, and helps with home purchases after you close.Sanjay Bhatia
Aaron made my home buying process very easy. He knew all of the important information that comes with experience, I felt comfortable and confident during the process. Thank youBrendon Stewart
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