Why Cash Rebates Matter When Buying a Home

Why Client Cash Rebates Make Good Financial Planning Sense When Buying a New Home

Over the years I have communicated with a number of prospective "move-up" clients who just could not financially justify selling and buying a new home even with a 100% Commission Free Move-up because the final numbers just did work. In many of these instances, the prospective "seller" and "move-up buyer" did not get a cash rebate when they purchased their new home and when the final numbers were analyzed, they were just short of a first down and decided to stay put. If these new home move up prospects had an adjusted net purchase price on their current home that was 3% less, they could have justified the financials enough to buy up. So Rebates as they affect net overall numbers do matter!

The bottom line, home buyer rebates can matter. Just like getting 10 yards matters and not 9.5 yards for a 1st down. Rebates work to lower your net cost basis in the home you are buying by the amount of your rebate, and then years later when trying to justify selling, the lower net adjusted home cost basis, actually helps the financials work towards justifying a move.