If you’re planning to buy a home soon, you may have heard that you can save money with Redfin rebates. Discover whether these rebates work as advertised and if there’s a way to know how much you’ll get
Buying a home is a long and sometimes intimidating process. One thing many home buyers are concerned about is having enough money to make the deal work.
You need to be pre-approved for the right mortgage, but there are closing costs and down payments to keep in mind. The good news is that you don’t have to shoulder that burden alone.
You may have heard that Redfin gives a refund that can help towards closing costs. How does that work and how much can you expect to save?
Here’s what you need to know.
Redfin Rebates Are Only in Specific Markets
To qualify for a rebate, work directly with a Redfin agent. If they refer you to a Redfin Partner Agent, you cannot get a refund.
This is important because Redfin only operates in major metro areas such as Atlanta, Los Angeles, Dallas, and Seattle. If you’re buying a home outside these metro areas, you won’t be able to work with a corporate Redfin agent.
If you’re buying a home outside of their normal coverage area, Redfin will connect you with a Partner Agent instead of a regular Redfin agent to help you buy a home. Redfin will refer you to a Partner Agent if there aren’t Redfin agents in your area, if the current agents are busy, or if the home is below their minimum price requirement.
When you work with a Clever Partner Agent, you won’t have any questions about the service or rebate you’re eligible for. You’ll get a high-quality full-service experience and get a $1,000 rebate on homes over $150,000.
There’s a Minimum Commission to Qualify for a Redfin Rebate
The Redfin refund doesn’t apply unless the buyer’s agent commission is at least 1% or $6,500, whichever is higher. Because buyer’s agents often receive a commission of 3%, you’d need to buy a home for at least $216,666 before you qualify for a refund.
Sometimes, Redfin agrees to receive only 2% as a buyer’s commission. That means you’d need to buy a home that is $325,000 before the commission hits the threshold. In many areas, Redfin doesn’t offer service on lower-priced properties at all.
That’s a lot of house to buy, especially if you’re a first-time buyer. With Clever, you only need a home that’s at least $150,000 to qualify for a $1,000 cash rebate.
Some States Don’t Allow Rebates
There are several states in the U.S. that don’t allow rebates from any real estate agent. That means that Redfin’s refund (and Clever’s rebate) don’t apply in those states.
If you’re buying in Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, or Tennessee, you must find other ways to save on your closing costs. For instance, you can take advantage of first-time home buyer programs that allow you to have a lower down payment or reduced mortgage fees.
Be sure your state allows a rebate before you bank on a refund.
The Refunds Listed On Redfin Are Estimates
Many Redfin listings show a specific refund amount for that home. However, they are not guaranteed. In the fine print, Redfin shares that Redfin refund amounts are subject to qualification and may fluctuate according to a variety of factors.
That means there’s no way to know exactly what refund you’ll get if you use Redfin. In addition, your lender must approve the Redfin refund and not all lenders will do so.
Clever will let you know the specific amount from the beginning. It’s $1,000, plain and simple. There’s no guesswork, no sleight of hand, and no estimates.
If you want to know exactly what you’re getting, choose an experienced Clever Partner Agent.
Save Money at Closing By Working With Clever
If you’re looking for an alternative to a traditional realtor, be sure you choose an agent who will help give you the service and certainty you deserve. You shouldn’t have to wonder if an agent will be available, whether you’ll get a rebate, or how much it will be.
When you buy from a Clever Partner Agent, you’ll get $1,000 at closing for a home over $150,000, and if you’re buying a home over $500,000 you can qualify for up to a 1% rebate. So whether you’re buying a less expensive home or a high-end property, Clever will save you more.
If you’re looking for an alternative to a traditional realtor, choose an agent who will help you find the home of your dreams at a price you can afford, without threatening your rebate Contact Clever to connect with a high-quality agent today.