Is New Jersey Association of Realtors behind the times? Or is trying to protect both customers and real estate agents? The Inman News had a story today about possible legislation by the New Jersey Real Estate Commission:
The New Jersey Association of Realtors is opposing legislation that would allow real estate brokers and agents to provide cash rebates or other gifts to buyers and sellers.
Members of the state’s Real Estate Commission, a regulatory agency that enforces licensing law in the state, has considered the legislation but hasn’t yet announced a position….
….While officials at the U.S. Department of Justice’s Antitrust Division have taken action to oppose bans on rebates in several states, New Jersey Association of Realtors officials contend that the offer of rebates can actually be harmful to consumers.
As of now, cash rebates by real estate brokers is against the law in NJ. But New Jersey is not the only state prohibiting cash rebates. There are 10 other states that do not allow real estate brokers to offer cash rebates to customers.
I believe that cash rebates in real estate ought to be banned due to the fact that it takes the real out of real estate.
It keeps the tax level high while reducing the actual level of the property , hurting the buyer.
It reduces the amount received for the property , hurting the seller.
It smells like three day old fish. Dave
Dave,
I am with you on this, not only because I am a former real estate agent….
If I had to buys or sell now, I would avoid any agent that has ever offer
rebates. My house is worth more than that.