About Home Buyer Rebates

Frequently Asked Questions & Answers…. 

Best Real Estate WebsitesWho really pays the Buyer’s Agent commission? The Rules were changed by a Class-Action Lawsuit in 2024. Sellers can still offer a Commission to Buyer Agents, they just can do it through the Realtors MLS System. If the Seller chooses not to offer a Buyer’s Agent commission then it will be up to the Buyer’s Agent to have an Agreement with their Buyer Client to pay a mutually agreed to amount for their Services.

What is a Real Estate Rebate or Home Buyer Rebate? Also known as an “Agent Commission Split” a rebate can be considered a business strategy and a generous act by a Buyer’s Broker to share a portion of the commission with their Buyer Client. A Buyer Broker’s or Buyer’s Agent who provides a real estate rebate typically does so to reward the Buyer for the time the save them by doing some of their own “homework” such as online real estate research and property searching. A rebate is typically shown as a credit to the buyer at closing so that the buyer needs to bring a lot less money to the closing table.

Are Home Buyer Rebates considered Taxable Income?  According to the IRS, the answer is no. The Internal Revenue Service considers a rebate paid to a home buyer an adjustment to the price of the property purchased, and therefore not taxable income to the home buyer.

Are rebates available in all US States? According to the U.S. Department of Justice, real estate rebates (aka; Credits to the Buyer) at closing are currently available in 42 states and DC. The Department of Justice approve that some Realtors will compete for home buyer business by refunding a portion of their commission as a rebate. Rebates are not yet available in Alaska, Alabama, Kansas, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. But since their combined population is only about 12% of the USA, then about 88% of the population can have access to a real estate rebate in their hometown or destination city.

How do I find Realtors who give real estate rebates? There are several Online Real Estate Networks that can direct you to Realtors who offer Rebates. Most of them require Realtors to pay them a “referral fee”. The BestHomeSearch.com Network doesn’t charge Realtors a referral fee, so their network Realtors can afford to offer the consumer the higher real estate rebates.

Can I negotiate a Home Buyer Rebate from a New Home Builder? You can certainly try. However, most Builders are making their offer of compensation to Realtors because they want them to bring them their Buyer clients. They want the Buyer’s Agent to take some of the responsibility of getting the Buyer to the closing table. Plus, Home Builders are typically already offering some type Buyer Promotions like Free Home Upgrades, paid closing costs, or discounted Financing Options, etc. You will do much better with your own Buyer’s Agent who offers a split of the commission they receive from the Builder.

How do I benefit from a real estate rebate as a Seller? The largest cost of selling a home is normally your mortgage payoff. Second, highest cost is the Listing, Marketing, and Selling Fee paid by the listing Agent. Instead of thinking real estate rebate, you may want to consider the specific savings by comparing Realtors offering “Full Service for Less”, “Fee for Service”, and “Flat Fee Listings”.  That is what BestHomeSearch.com can help you do.

About Real Estate Rebates

Best Real Estate Websites
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