breakage

Today I am going to review a site http://www.Northidahorebates.com which belongs to North Idaho Rebates. What they say about their company is here: " The North Idaho Rebate Team is Offering Rebates on real estate transactions up to $10,000 for byers and sellers. Our goal is give back to buyers."

Well, I asked myself that how it works. They claim that they pay buyers a rebate up to $10,000 regardless of who the home is listed with so long as the buyers retain these guys to represent them as buyer agent in the transaction.

The other part of the offer is as follows. They will pay those who want to sell their homes a $3,000 rebate at closing and $10,000 rebate at closing if they don't sell their home in 65 days. That means they are kind of guaranteeing a quick home selling. So you will get your money quickly.

Here I should explain the idea of "Breakage". Insurance, coupon and rebate programs like Cash Rewards work on the concept of "breakage". Breakage is the statistical difference between the number or coupons, rewards, policies, etc. issued, and those that are collected or paid. Have you ever bought an item and received a rebate coupon in the box it came in but never sent it in? That's breakage. Breakage can be quantified, tracked and projected. The mathematical term for such statistics is "actuarial data". Actuarial data is used by companies when offering a payout, the total of all such commitments typically being larger than the sum total of the company's premium payments.

Another important point they say in their site is here : "we want the seller to feel empowered and confident that they are hiring a firm that will work for them and will be held accountable." That means they want to do a good job. They also add another explanation about the rebate " It is simply a financial reward that is paid for by the sponsor (in this case, The North Idaho Rebate Team) and offered to you at point of purchase/sale." Check their website for more information if you want to buy or sell a property.