new home buyers work really hard. they should get paid too!
Why is "84% of ALL my commission" better than the typical promise of "Up to 2%"? One word... TRANSPARENCY!
- Stuart knows that New Home Buyers DO MOST OF THE WORK! Buying a new home is a daunting and long process. Stuart's Rebate STARTS at 84% of ALL my commission and goes as high as 96% of ALL the commission paid by the Builder! See the FAQ's for even higher Rebates. YOU, the San Antonio, Texas new home Buyer (not your Agent) will work very hard before you are moved in... GET PAID FOR YOUR HARD WORK!
Got Questions?
FAQ's
Q: How do I get the minimum 2.52% (84% of a 3% total compensation) New Home Rebate anywhere in
Texas?
A: Stuart Scholer must be named as your Realtor BEFORE you sign a Builder's new home contract.
If you sign a contract without a named Agent or are working with another Agent then you will not be
eligible for Stuart's Rebate. All of Stuart’s info and his Broker's info is at the bottom of this web site's
home page. And YES! You may call the Broker if you wish to verify anything about Stuart.
Q: What exactly is this "Houston Realtor Rebate", "San Antonio Commission Sharing Rebate", "Austin
Realty Rebate" or "Texas New Home Rebate"?
A: In reality it is a "reduction of the cost of services" that are performed by the Buyer Agent,
Stuart B. Scholer. He is Licensed to practice real estate anywhere in Texas. Because of the normal
way the Buyer Agent compensation arrangement is executed (after closing only), the price reduction
for Stuart's discounted services has to be realized at or after closing also. This results in the actual
movement of funds from one hand (the Agent's) to the other (the Buyer's). Stuart actually receives
the full commission and then gives it back; either in cash and/or on paper, which usually is in the form
of a closing cost contribution.
On the other hand, when selling your home and dealing with a Listing Agent, the discount is
agreed upon before the listing takes place. Therefore the Listing Agent lowers the commission
amount up front and states the lower cost of services on the Listing Agreement before any
transaction takes place. So the discounting of services in this case do not necessitate that actual
monies change hands. There are no true Rebates when you sell your home.
Q: Why would a real estate agent give back or "share" part of their commission?
A: In some cases it might be a favor for a family member or a friend but in Stuart's case the
straightforward answer is: competition. Stuart's costs are lower than most Agents... his Broker
charges him a low flat fee because he is a volume producer. Also... Stuart only looks to get paid a fair
price for his knowledge, experience and time. That's his business model... He sticks to it. Stuart says:
"I pursue more business. Not more commission!".
Q: Is it possible to receive more than a 2.52% New Home Rebate?
A: Yes. If the Builder is paying a cash bonus on top of the 3% to the Selling Agent then Stuart's Buyer
will receive 84% of all of that cash bonus. That is why Stuart says: "minimum 2.52% Rebate". His
Rebates START at 2.52%. NOT "up to" 2.52%. If there is a cash Bonus then the Buyer receives their
share of that Bonus. Nothing is held back or hidden. Nothing sneaky!
Q: Is it possible to receive more than an 84% New Home Rebate?
A: Thought you would never ask... YES!! For new home purchases at higher price points, Stuart's
Rebates go up; starting at $475K.
*See the higher Rebates for higher priced homes*
Over $475K... 86%
Over $600K... 88%
Over $750K... 90%
Over $900K... 92%
Over $1.3M... 94%
Over $2M... 96%
Q: So... what is Stuart's Rebate? 2.52% or 84%?
A: Stuart's verbiage in the TAR-1501 Residential Buyer Representation Agreement, a legal contract
(form approved by the Texas Real Estate Commission) with his Buyers, expresses the Rebate as such:
"Broker will rebate back to Client 84% of all cash commissions paid by Seller and/or Seller's Agent to Broker at closing. Broker shall not seek any fees or commissions from Client under any circumstances. Add $200 if Client hires TREC Inspector for 3 Phase Inspection. Rebate to be paid within 72 hours AFTER Stuart Scholer RECEIVES ACTUAL FUNDS."
Based on a 3% total Commission... If you do the math (3 X 84%) you will see that the Rebate actually
works out to 2.52% (of the 3%). But this is not the only advantage to the New Home buying
consumer of getting 84% instead of 2.52%! Think about this... what if Stuart receives a 3%
commission PLUS a $5000 Bonus from the Builder? If the stated Rebate is "2%" then that is what
you will get; 2% of the purchase price... period! Nothing more. YOU WILL NOT RECEIVE A PENNY
OF THAT $5,000 bonus! But... what if the stated Rebate is: "84% of ALL cash commission"? How
much do you receive NOW? Yeah.... the 2.52% PLUS $4200!!!
So... "how you say it" does make a whole lot of difference.
Q: Are Stuart Scholer's New Home Rebates ever less than the 2.52% out of the 3% paid by the Builder??
A: Well... the answer used to be : NO! NEVER! But now it is: YES... SOMETIMES.
Here's Why. Over many years I have done several hundred new home transactions and always
receiving 3% or more in compensation. Starting in 2020 and 21, I am now seeing several Builders
paying 2% and in one case the compensation is 1%. YIKES! So obviously, in those cases my rebate
will be LESS than 2%. So remember...
Stuart's New Home Buyer Rebate will always be figured at "84% of all cash commissions paid to
the Broker" AND... As long as the Agent compensation is at least 3%, then the Rebate will be at
least the 2.52% out of the 3% paid.
***NOTE*** Please... Keep in mind that ALL Builders DO NOT pay commissions based on the
Total Purchase Price. Some Builders pay compensation according to the Builder's "base" price.
Others pay compensation based on something in between the "base" price and the Total Purchase
Price. Still others pay based on the TOTAL price. And yes there are a couple that pay based on
something BELOW the base price. Each Builder has their own criteria.
So, YEAH.... Stuart's New Home Buyer Rebate will always be figured at (minimum)
"84% of all cash commissions paid to the Broker".... even if he is paid a 1% or 2% commission.
Q: Are there any provisions in Stuart's Rebate that would disqualify or prevent a Buyer from
receiving all or a portion of the Rebate?
A: NO, NEVER! As long as your Buyer Representation Agreement Package is signed off and on file with
Stuart's Broker. If Stuart gets paid then his Client will be paid all of the
Rebate promised! There are no exclusions, exceptions, excuses or eccentric reasoning. Want to see
the Buyer Representation Agreement Package? Give Stuart a call and he will send it to you for your
perusal.
Q: Are New Home Rebates legal, permitted and/or ethical in Texas?
A: Yes. It is permitted... as long as the Agent's Broker permits the practice.
Yes. It is legal… TREC and others in the industry recommend disclosure to the Lender if there is one.
Yes. It is ethical. The practice harms no one and certainly helps the consumer. Most Realtor
Associations have no qualms against commission rebates either. The Federal Trade Commission is
very happy with the practice... Commission Sharing Rebates promote competition among Agents and
help the consumer in a big way.
SEE THIS Federal Trade Commission WEBSITE page:
https://www.justice.gov/atr/rebates-make-buying-home-less-expensive
Q: May I use the New Home Rebate to pay towards closing costs?
A: Yes. Within the Lender's limitations. Stuart is very familiar with the process. Sometimes the Rebate
is split... part is applied to closing costs and the rest is paid in cash after closing.
Note: If the Buyer has the ability to pay all closing costs out-of-pocket then it is much easier and
simpler to receive the whole cash Rebate on the day of closing. But if the contribution is really
needed to fulfill the Buyer's ability to close the transaction then everyonefully cooperates to get the
deal done.
Q: May I use the Rebate to lower the purchase price of the property?
A: Sometimes... but most Builders do not allow this because:
1.)for appraisal purposes they need to protect their price point in the community where they are
building and selling.
2.)It creates extra time consuming paperwork for the Builder's contract department
and also for the Lender, who has to make sure that the contract modifications will conform to the
loan program. Lenders sometimes frown on the practice. There is sometimes more Builder flexibility
in the lower priced New Homes where FHA financing is being used and there is more NEED and
tolerance for contract modifications and higher closing cost contributions.
NOTE: ALL of the Builders allow and cooperate with the Realtor making a closing cost contribution
to the Buyer when it is Lender permitted and necessary to get the deal done.
Q: Does Stuart give his Clients an IRS 1099 for the money he pays his Clients?
A: NO. Not in any case.
Q: Is the Rebate considered income by the IRS?
A: According to IRS publications and tax professionals it is not. But... in the case of an investment
property the Rebate would count against the cost basis of the property. In such a case Stuart still
does not issue a 1099. Send a note and Stuart will send you the IRS publication.
REMEMBER... Stuart is NOT a tax professional. Please consult your tax professional.
Q: Do I have to inform the Builder that my Agent is going to give me cash back?
A: No. The Buyer Representation Agreement that you sign is a private contract between
Broker and Client. Stuart suggests you do not inform them unless necessary. If there is to be a
contribution of all or a portion of the Rebate to help with the Buyer's closing costs then all parties
will become aware of the arrangement by way of disclosure by Stuart. The Builder salesperson may
even ask you if your Agent is "going to make a contribution?". *** Stuart suggests that you act dumb
and not disclose this info to the Salesperson. Remember, the Salesperson is being paid to look after
the best interests of their employer (the Builder) and get the best price for the property. Informing
the Salesperson of the Rebate may change your negotiating position with the Builder.
Q: Should I hire my own independent inspector for my new home construction?
A: Even though the Builder has their own independent inspectors, Stuart's answer is still YES! YES!
and YES!. If you want the long answer click on this link for an article on why a Texas consumer
should hire their own inspector. *****LINK***** And to back up his opinion Stuart will kick in $200
(paid at closing) to help pay for that Inspection.
STILL MORE QUESTIONS?
Please feel free to send a note or call Stuart with your specific questions.
He will try to answer them for you.
Stuart B. Scholer License # 498891
Stuart's Cell: 832-372-0434
Agent for: 5th Stream Realty Broker License # 900599
7941 Katy Freeway # 787
Houston, TX. 77024
Broker phone: 214-868-0707
About Us
Who is Stuart Scholer?
Check out Stuart on HAR.com's CLIENT EXPERIENCE RATING
http://search.HAR.com/memberfinder
Please take a minute to read how HAR administers their rating system... see how it works. Not all agents participate.
Ask Stuart to send you a copy of his TAR-1501 Buyer Representation Agreement - A legal contract
In Texas... "if it ain't in writin'... you ain't got nuthin'"
Understand the whole picture
Buying a new home is a serious business decision... you certainly want the best deal from the Builder and the lowest interest rate from the Lender, correct? Of course! Because we are talking about thousands of dollars!!!
So...Shouldn't you expect the same from your Agent? Of course! Because we are talking about thousands of dollars!!!
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