Typically, we offer between 33% - 50% of our commission in the form of a rebate. The amount depends on the number of homes shown and time spent.
$300,000 Home = $3,000 - $4,500 rebate
$500,000 Home = $5,000 - $7,500 rebate
$800,000 Home = $8,000 - $12,000 rebate
Home buyer rebates, also known as commission rebates, are when a real estate agent who’s helping their client buy a home gives a portion of the commission they receive from the seller back to their client.
The buyer can use this rebate for their down payment, closing costs, to buy points on their mortgage, and in some cases, can even take the rebate as cash at closing. It’s important to note that if you’re using a mortgage lender to finance your home, they have to approve how you use the rebate. Many lenders won’t let you take the rebate as cash at closing.
Commission rebates allow you to afford a more expensive home, or to save on your down payment for your dream home.
In a sellers market, home buyer rebate is a powerful tool that savvy buyers can use to stand out from their competitors. If a home is listed at $400,000, a buyer that’s receiving a rebate could potentially offer $406,000—and pay the exact same amount as another buyer that offered $400,000.
For homes that receive multiple offers, this could be the difference between your offer being accepted, and months of searching for another home.
The graphic below shows how the rebate process typically works.
In a traditional real estate sale, the seller hires an agent and offers between 4-6% to their agent to sell the home. Their agent then offers half of that to the buyer’s agent.
If the buyer has hired an agent that offers a commission rebate, the agent will give them a portion of the commission offered by the seller’s agent.
Commission rebates are legal in 40 states, and the US Department of Justice supports making rebates legal in all 10 states.
In fact, the Department of Justice actively investigates any organization that tries to regulate real estate commissions. The DOJ is also leading a broad effort to educate states about the benefits of competitive real estate commissions in an effort to legalize rebates in all 50 states.
This graphic from the Department of Justice will let you know if home buyer rebates are legal in your state:
Please contact us with more questions.