HomeGift - Frequently Asked Questions

HomeGift Frequently Asked Questions

Who is HomeGift?

HomeGift Realty, Inc. is a licensed real estate company that combines consumer savings with charitable giving through the operation of uniquely designed real estate programs throughout the United States.

We are internet-based for efficiency, but are staffed by real people who are available to answer questions. Our programs enable consumers to get cash rebates on their real estate commissions and make it easy for them to support a favorite non profit organization.

Licensed as a real estate broker in Massachusetts, California and Florida, HomeGift has proven itself as a trusted partner to some of the best known non-profit organizations around the country. As a Massachusetts-based corporation, we are registered with the Attorney General of Massachusetts and the Massachusetts Real Estate Licensing Board. We can be reached by phone during normal business hours. Contact HomeGift Realty

Real Estate Questions

Q. Do HomeGift programs mean buyers and sellers have to compromise in getting the best agent?

A. No. Buyers and sellers participating in HomeGift’s programs control agent selection. HomeGift works with top agents and lets each participant decide which agent to choose. Participants can use agents they know or let one of our experienced real estate counselors pre-screen agents and give them choices. HomeGift doesn’t steer buyers and sellers toward any one firm because we work with all of them.

Q. What about getting the best price when buying or selling?

A. HomeGift may help participants select the best agent for their needs and market, but nothing else changes in the way program participants buy or sell properties through agents. Sellers still negotiate commissions and decide sales prices. Buyers pick the agents that are right for them and aggressively negotiate the best deals on purchases. Prudent agent selection is one of the most important factors in a successful real estate transaction.

Q. Buying or selling a house is complicated enough, why would I want to think about a charity now?

A. Registering for the program takes less than 4 minutes. There is no paperwork to get your rebate. There is no paperwork to make a tax deductible donation. Nothing changes in the way you engage your agent, or the way you ordinarily buy or sell - except you get a rebate check in the mail after closing. One more thing: Its free!

Q. Where does the cash rebate come from?

A. The cash rebate is coming out of a “referral fee” that real estate brokers willingly pay each other in exchange for the referral of buyers and sellers. Agents who work with HomeGift pay us a referral fee for each transaction they close with one of the millions of non profit supporters that our programs reach. The participant’s cash rebate comes out of this fee that HomeGift is paid. After closing, we give back up to 70 percent of our referral fee to you the partipating buyer or seller in the form of a check.

Q. Do “referral fees” cost any more?

A. No. Referral fees come out of – are not added to – the agent’s commission. They do not cost buyers or sellers any more because agents consider them “a marketing cost” to get more business. As always, buyers and sellers still negotiate commission rates as part of choosing their agent.

Though most buyers and sellers are unaware of them, referral fees are a standard industry practice. They occur in some 40 percent of all real estate transactions and their use is growing, according to a recent article published by the National Association of Realtors:

	“…we see in many situations that both consumers and real estate professionals benefit through referrals.”
	Thomas M. Stevens, President of the National Association of Realtors. learn more about referral fees

Q. What if a buyer or seller already knows an agent he or she might like to use?

A. HomeGift can refer you to any licensed agent as long as the participating buyer or seller has not already signed up with or made a commitment to the agent. When registering with HomeGift, the participant simply provides the name and contact information of the agent. A lot depends on where the participant and agent are in the process of agreeing on representation. For example, a participant may be thinking of an agent he or she hasn’t used in years. On the other hand, the participant may be thinking of an agent who may have recently put a lot of time and effort into helping with an upcoming sale or purchase. While the participant and the agent ultimately decide whether the program is right, we want to be fair to agents, too. Please contact HomeGift Realty with further questions on using an agent you know.

Q. Are there benefits to agents and brokers?

A. Yes. Agents get access to millions of potential buyers and sellers by being part of our program. Because agents are used to paying referral fees, they also get another benefit: our referral fees are lower than many big national relocation or other real estate firms. What’s more, agents now get to use the referral fee to save their clients money and help non profits – instead of seeing the entire referral fee simply go back to real estate companies.

Q. How does HomeGift find an agent for a buyer or seller?

A. HomeGift carefully screens and interviews its agents—in all 50 states—to make sure that participating buyers and sellers are getting qualified, professional agents who know the participants’ market areas and has sold properties in the participants’ price ranges. If a participant is a first time buyer or new to an area – or just wants to be introduced to a good agent he or she hasn’t used before HomeGift will work with a buyer or seller to personally match him or her to an agent that’s right for his or her needs and market. For participants who are too busy to go through lots of agent interviews HomeGift will pre-screen the agents and save them time. Then the buyers and sellers make the choice.

Q. Why is it so important to contact HomeGift before signing up with an agent?

A. In order to provide cash rebates to our participants, HomeGift must follow the industry practice in which we “introduce” each participant to an agent so we can collect our referral fee. If a buyer or seller has already signed up with an agent, we cannot collect this referral fee and therefore cannot pay that buyer or seller a rebate.

Q. What if a seller has already listed the property or signed a listing contract or a buyer has already signed a buyers agreement with an agent?

A. Under these circumstances, the buyer or seller cannot use the program. HomeGift Realty cannot and will not interfere with an existing contract between an agent and his or her client.

Q. Are rebates on real estate available in every state?

A. Rebates are available in most states. There are 9 states that prohibit rebates. Why do these states prohibit rebates to consumers? That’s an excellent question for the legislators in those states.

Donation-Related Questions

Q. What are the benefits of the HomeGift programs to participants and to their favorite non-profits?

A. Participating buyers or sellers get cash back from real estate commissions after the purchase or sale is completed. It's up to the Participant to decide how much to keep and how much to give to a non-profit. HomeGift sends the donation to the nonprofit in the participant’s name and sends a check for the balance the rebate to the participant. A charitable donation from a cost savings is a “win-win” for the participant and the charity. Charitable donations to qualified organizations are also eligible for tax deductions.

Q. How does the partipating buyer or seller get the cash rebate and send a donation to a charity?

A. A few weeks a After HomeGift receives the referral fee from the agent – usually within a week or so after the closing – HomeGift will mail a check to the participant in the amount of the rebate he or she chose to keep. If the participant has chosen to give some or all of the rebate to a cause or charity, HomeGift sends the organization a check for the portion designated. HomeGift sends the donor/participant’s name and mailing address to the non profit so that the organization can send a written recognition of the contribution to the participant. HomeGift also provides the participant with a written record of the participant’s rebate and donation.

Q. Do HomeGift programs work with any charity or cause-related organization, even a local one?

A. Yes. The program works with any qualified tax-exempt non profit, even if donations to some exempt organizations are not tax deductible. Give to animal rights. Help the environment. Or share your cash rebate with your local church or temple. Give to a local art museum or library. Help the homeless. The whole idea of HomeGift is to allow people to save money and give back to the community.

Q. Are contributions to my favorite non profit eligible for deduction as charitable donations?

A. Yes, as long as the non-profit is eligible under the Federal tax code. After a participating buyer or seller makes a donation that is eligible for deduction through HomeGift, the non-profit will send a written acknowledgement of the gift for the donor-participant’s records. Remember: the deductible status of any contribution to a non profit always depends on the organization’s Internal Revenue Service status and the participant’s personal circumstances. If in doubt, participants should consult their tax professionals for advice.

Q. Is there a lot of paper work and time involved?

A. No. This is a “paperless” cash rebate. All a buyer or seller needs to do is register with our program before signing up with an agent – online or by phone. Registration takes only a few minutes and we do not collect any personal financial information or sell any information to third parties.

Q. How much of participant donations does the charities and cause related organizations get?

A. 100%. HomeGift sends the entire amount each participant hasve chosen to give directly to the designated non-profit. Each donor-participant gets a record of that and so does each non-profit.

Q. Does this mean participating non-profit organizations are getting into the real estate business?

A. No. Participating non-profits are not “getting into” the real estate business. They are, as always, looking for innovative ways to fund their missions and to reach out to their public. HomeGift Realty, Inc., a licensed real estate broker, provides all of the real estate related services – starting with answering any and all questions you may still have about the program. Contact Us .