This past Sunday's Boston Globe included an article on how online agents are using rebates compete against traditional commission-based real estate brokers.
Savings to the consumer can be substantial, but there are tradeoffs. What's more, some states bar the practice of rebates, says the Globe, on the grounds they could be misused as kickbacks.
As you might expect, establishment brokers question whether a rebate really is in a customer's best interest. For instance, an agent may not be able to negotiate a lower commission or may reduce the level of service they provide because they owe the rebate company 35% of their commission. Then there are those who feel that the whole practice of hawking rebates is "undignified".
Online agents, on the other hand, counter that customers can have it both ways -- good purchase prices and money back in the form of a rebate.
Don't expect this debate to be resolved any time soon....
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