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FAQ2019-07-11T12:49:45-06:00

You Have Questions, We Have Answers

HOW DO COMMISSION REBATES WORK?2019-07-07T22:09:24-06:00

It’s pretty simple. On every property, a commission is offered to the buyer’s broker. In the Chicago area it is commonly 2.5% of the sale price.  If you work with a traditional broker, they keep that entire 2.5%.  With Buyer’s Advantage, we simply give you a portion of that commission back in the form of a rebate at closing.

HOW ARE BUYER BROKERS COMPENSATED?2019-07-07T21:18:55-06:00

Buyer’s brokers are almost always paid by the listing broker in the form of an advertised cooperating commission. This commission is listed on the MLS listing when the listing broker enters into in the computer database.  A broker can go into the broker portal and look up how much they will get paid on any property. Of course that information is not available to the general public.

The amount of the commission is determined by the seller and the listing broker, but is traditionally about half of what the seller agrees to pay their listing broker to sell their property.  Without using a Buyer’s Broker, a buyer is not entitled to any of that cooperating commission and the entire amount is usually kept by the selling broker.

ARE COMMISSION REBATES LEGAL?2019-07-07T21:22:49-06:00

Yes, in Illinois they are legal.  We have been giving our clients a rebate since 2001.  In fact, the US Department of Justice encourages buyers to use a buyer’s agent that will give them a rebate.

HOW DOES YOUR SERVICE COMPARE TO OTHER BROKERS?2019-07-07T21:29:42-06:00

We believe that our service is better than other agents out there, but you will need to see it for yourself.  We provide all of the same services as a traditional broker, but only represent buyers.  We believe that being an Exclusive Buyer’s Broker is the largest advantage that we have over other agents in the area.  The rebate is just a bonus!

Feel free to take a look at our testimonials to get an idea as to what past clients think of our service.

HOW CAN YOU OFFER A REBATE WHEN OTHER BROKERS DON’T?2019-07-07T21:34:56-06:00

This is probably the question we are most asked.  The basic answer is that we just don’t have the overhead and expenses that other brokers have.  We don’t have to split our commissions with multiple parties and you won’t find our ads in those fancy magazines.  Its the way Buyer’s Advantage was started and has continued for almost 2 decades.  It works for us!

CAN’T I JUST DO IT ON MY OWN AND GET THE ENTIRE BUYER’S COMMISSION?2019-07-07T21:45:24-06:00

You certainly could try, but no listing broker will give you the entire commission.  They will want to be compensated for having to deal with you as an unrepresented buyer.  Since they already have an agreement between them and the seller for the full commission they don’t have much incentive to give you a part of their commission.  Clients come to us all the time with stories of losing out on a property because they could not get the seller’s agent to give them any sort of a rebate or discount.

With Buyer’s Advantage, you get a defined amount as your rebate as well as a dedicated, experienced buyer’s broker working on your behalf.

ARE COMMISSION REBATES TAXABLE?2019-07-07T21:48:20-06:00

The IRS has traditionally treated commission rebates as a reduction of the purchase price and not as taxable income.  The IRS has issued a Private Letter Ruling on this exact issue and absent some change in the law your rebate will not be taxed.  However, it is always smart to check with a tax accountant to verify this information.

WHAT IS AN EXCLUSIVE BUYER BROKER?2019-07-07T22:08:36-06:00

An Exclusive Buyer Broker is a real estate agent that only represents buyers.  They are specialists in the home buying process and won’t have a conflict of interest where their broker may represent both sides on a transaction.

Many realtors are now calling themselves “buyer agents”, yet they remain employed by brokers that take home listings and sellers as clients.  Remember, a true Exclusive Buyer Broker never represents sellers and their office never takes listings.

Don’t forget that while buyers and sellers need not be adversarial in actions and attitude, their personal interests are adverse. Buyers want the lowest price and best terms, and sellers want the highest price and best terms.   We negotiate for our clients without any chance of real or perceived conflicts of interest. You would not expect less from your doctor, accountant, or attorney, so why potentially settle for less on the biggest financial transaction of your life?

WHAT IS THE DIFFERENCE BETWEEN AN EXCLUSIVE BUYER BROKER AND A TRADITIONAL REALTOR?2019-07-07T22:22:03-06:00

An Exclusive Buyer Broker is a real estate agent that specializes in representing people buying homes. Exclusive Buyer Brokers do not represent people who are selling their homes in order to avoid the conflict of interests it creates.

WHAT IS REPRESENTATION AND WHY IS IT IMPORTANT?2019-07-07T22:24:03-06:00

Representation is important because it requires a Realtor who is representing you to be loyal to you and keep your information confidential, among other responsibilities.

An Exclusive Buyer Broker will seek out useful information about the seller and the property, such as:

  • how much the seller paid for the property (this is public information)
  • why the sellers are selling the property
  • how long the property has been on the market
  • if the home been listed before and not sold
  • if there are potential problems with the property
  • if it will be difficult for you to sell the property after you have purchased it
  • if there are property value, airport noise, road, traffic, or neighborhood issues that could affect your enjoyment
  • if there are issuse that may make this home a bad investment
IF A BUYER’S BROKER IS PAID ON COMMISSION, WHY SHOULD THEY TRY AND SAVE ME MONEY?2019-07-07T22:27:28-06:00

First, as an Exclusive Buyer Broker, it is our fiduciary duty to negotiate the best deal for our client the buyer. This duty is something that we take very seriously.

Second, the word of mouth advertising we receive from a satisfied customer for saving them money is worth much more to us than the small increase in commission we would have received from not negotiating the best deal for our client.

HOW DO I BECOME A CLIENT?2019-07-07T22:28:12-06:00

Call us to set up an initial meeting where we can discuss your needs and interests, our services, and see if there is a good match. We also will go over the home buying process in as much or as little detail as you like, and point out ways to save money and find a better home. If you are accepted as a client, we will set up a home buying plan that encompasses all of your interests and your timetable.

WHEN SHOULD I CONTACT YOU?2019-07-07T22:30:17-06:00

The earlier the better as there is a lot that we can do for you prior to you finding your home.  However, as long as you haven’t submitted an offer, we can always represent you.

I WENT TO AN OPEN HOUSE AND FOUND A PROPERTY I LIKE, IS IT TOO LATE TO HIRE YOU?2019-07-10T16:19:03-06:00

Nope, give us a call and let us get to work for you.  As long as you have not submitted an offer, we can represent you.  You might as well take advantage of our knowledge and the rebate!

I thought I could buy my condo on my own without the help of a broker.  I failed!  After going to a ton of open houses and getting turned down on two offers, I found Joe at Buyer’s Advantage and sent him an email.  Within 30 days of emailing him, I was under contract to buy my first home, a condo in Lincoln Park.  He was amazing and had so much knowledge about things I hadn’t even thought of when I was doing it on my own.

John, Lincoln Park

Once again, thank you for all your help.  This being the second place I purchased with your services, I was much less nervous this time.  Thank you, I love my new condo!  As you know, I recommend you to all my friends and just shake my head when they think they can go at it alone.  Thanks again!

Shelia, Lakeview

We want to thank you for the exceptional service you provided to us in the purchase of our home. Your full commitment to our interest as buyers was incredible. We love our new home and look forward to sincerely recommending you to all our friends!

John and Stacey, Wilmette

Thank you so much for all your help over the last few months. You have been much more than a real estate agent! I don’t know if I would have taken the step to become a home owner with your help. Thanks again for everything you did!

Diane, Lakeview

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