COMMISSION REBATE PROGRAM

We are a full-service real estate firm covering the San Francisco Bay Area. If you purchase a home through Menlo Atherton Realty you will receive a rebate for any commissions received by us in excess of 1% of the purchase price of the home (subject to a minimum commission to Menlo Atherton Realty of $10,000). Typically the commission rate to the buyer’s agent is 2.5% - 3.0%. This means a 1.5% - 2.0% rebate to you the buyer.

Why does Menlo Atherton Realty offer commission rebates?
Times have changed. Nowadays, most buyers prefer to do their own research by scouring the internet and attending open houses. Unlike full-commission agents we reward you with a commission rebate for doing this research.

How can buyers see a home without a realtor?
We offer a number of ways to help you see a specific home.

• Open house – Most homes are open on the weekend but many open houses are not actually listed in the MLS – only the local newspaper. We will contact the listing agent to find out the exact open house schedule.
• Broker tour – All new listings and price reductions greater than 5% are open on a specific weekday from 9:30-1:00. Each region has its own tour day. The tour day for the North Peninsula region (San Bruno down to Menlo Park) is every Tuesday. The Palo Alto, Los Altos and Mountain View regional tour day is every Friday and the South Bay tour day is every Wednesday. Almost all new listings are open the weekend following the broker tour so the broker tour is mostly a backup in case you are not available to see the home via the open house the following weekend.
• Listing agent – we will contact the listing agent to see if it is possible to arrange a showing directly with the sellers or listing agent.
• If none of the above methods work out, we can open the home for you provided you have already seen the home from the outside and are comfortable with the neighborhood.

If you want to see more than one home, we also provide touring services. A Menlo Atherton Realty field agent will open up homes for you and is paid at the time of service. You can go on as many tours as you’d like and you are not obligated to purchase a home through us. If you choose to buy one of the homes you see with our field agent, you can use Menlo Atherton Realty or any other company to manage your transaction.

Scheduling a tour is easy and costs only $30 per hour.

• Search our site for the homes you want to see
• Send us a list of the MLS numbers you want to see
• Tours are two hours minimum and require 24 hour notice
• Tours are available 9 a.m. - 6 p.m. seven days a week.

What is the difference between your commission rebate business model and working with a full-commission agent?
To be honest, quite a bit! When you compare our experience, knowledge and level of customer service to other agents you will quickly see there is no comparison. Whether it is by phone, email or text we respond promptly to your inquiries seven days a week from 8am until 8pm with professional and courteous service.

Once you identify a home you’re interested in we will perform the following:

• Examine the home with you, discuss pricing, property condition, the neighborhood etc.
• Perform a thorough analysis of the disclosures and inspection reports and submit to you a write-up with my thoughts and analysis regarding those documents.
• Analyze sales data to create a thorough market analysis and submit to you a comprehensive report.
• Negotiate and prepare the contract and supporting documentation
• Once the offer is accepted we manage all aspects of the escrow process including: coordinating with the title company, lender, listing agent and sellers to ensure a smooth transaction.

What is the best way to receive a commission rebate?
There are two different ways to receive your commission rebate from Menlo Atherton Realty.

• Credit on your closing statement – preferred method for most of our clients. This means our rebate will show up on your closing statement as a credit thus requiring you to bring in less cash to close escrow. However, these days lenders are really tightening up as to how much of a rebate they allow buyers to receive during escrow. Depending on your specific loan program and size of your down payment, some lenders will not allow a rebate exceeding the total closing costs (title insurance, escrow fees etc.). We will always work with your lender to allow the entire rebate credit during escrow. However, if your lender only allows a partial rebate during escrow, we will mail you a check for the remaining balance the day after the close of escrow.
• Check after the close of escrow – less preferred method. When all else fails and the lender is resolute in their refusal to allow a rebate credit during escrow we will mail you a check for the full rebate amount the day after the close of escrow.

Either way, check or escrow credit, we will ensure you receive your full rebate.
You are protected by our signed commission rebate agreement
you will receive prior to making an offer.

Is a commission rebate taxable?
NO, commission rebates are not considered a taxable event in the eyes of the IRS. However, rebates DO reduce the cost basis of your home when you sell it. For example: let’s assume you purchase your home for $1.0m and receive a 2.0% ($20k) commission rebate. Let’s also assume you subsequently sell the home for $1.1m. Normally your capital gain would be $100k. However, if you received a $20k commission rebate then your cost basis of the home would be $980k and your taxable capital gain would be $120k.