Ever heard of a home buyer rebate? It’s like getting cash back when you buy a house. Some real estate agents offer to share part of their commission with you after the deal closes. That’s money in your pocket, just for working with the right agent.
You don’t have to jump through hoops, either. Rebates are legal in most states and can be used to cover closing costs or just pad your savings. But not everyone knows they exist, or how to ask for one the right way.
This guide breaks it all down: how home buyer rebates work, how much you can get, and whether it’s worth asking for one. We’ll also show you the companies offering rebates in 2025 and how to make the most of them.
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Home Buyer Rebate
- What Is a Home Buyer Rebate?
- How Do Home Buyer Rebates Work?
- Are Commission Rebates Legal in Every State?
- Top Companies That Offer Buyer Rebates in 2025
- Can You Negotiate a Rebate With Any Real Estate Agent?
- Can You Use a Rebate Toward Closing Costs or Down Payment?
- Is a Home Buyer Rebate Worth It?
- Reilly’s Two Cents
- Simple Way To Save Money
- Frequently Asked Questions
What Is a Home Buyer Rebate?
A home buyer rebate is when your real estate agent gives you part of their commission after you buy a home. It’s also called a commission refund or a commission rebate. You don’t have to pay it back, it’s simply money your agent shares with you.
Most agents get paid by the seller, usually around 5–6% of the home’s sale price. That commission is split between the seller’s agent and your agent. With a rebate, your agent gives you a piece of their cut, often 0.5% to 1% or more of the purchase price.
The National Association of Realtors says these rebates can help buyers lower closing costs or free up cash for moving expenses. That’s why they’re becoming more popular, especially when every dollar counts.
How Do Home Buyer Rebates Work?
When you buy a home, your agent earns a commission based on the sale price. If they offer a rebate, they’ll give you a portion of that commission after the deal closes. Some agents give you a check, others apply it as a credit toward your closing costs.
Let’s say you buy a $400,000 home. Your agent might earn 3%, or $12,000. If they offer a 1% rebate, you could get $4,000 back. That’s enough to cover movers, a new fridge, or part of your closing costs.
The exact amount depends on the agent, the rebate program, and your state laws. Some rebates are a flat fee, while others are based on a percentage of the purchase price. Either way, it’s a smart way to stretch your budget.
Are Commission Rebates Legal in Every State?
Home buyer rebates are legal in most places, but not everywhere. As of now, they’re banned in Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. If you’re buying in one of these states, agents aren’t allowed to offer rebates, even if they want to.
In the rest of the country, rebates are legal but often come with some fine print. Your lender might need to approve the rebate ahead of time, and you’ll usually have to disclose it in your closing documents, like the HUD-1 form.
The National Association of Realtors supports rebates because they help buyers save money. Just make sure to check your local laws and talk to your agent before you assume you’re getting cash back. Every state plays by different rules.
Top Companies That Offer Buyer Rebates in 2025
Not all agents offer rebates, but some real estate companies make it part of their business. These brands have rebate programs that let you get money back after you buy a home, sometimes thousands of dollars.
- Clever Real Estate: Offers up to 0.5% back in eligible states when you work with one of their partner agents.
- Prevu: Promises rebates up to 2% of the purchase price in select major cities.
- Redfin: Offers closing credits on many purchases, though rebate amounts vary by location.
- UpNest: Lets agents compete for your business, sometimes offering rebates as incentives.
- Trelora: Flat-fee model with potential for commission refunds in specific markets.
- Keller Williams: Rebates depend on the individual agent and office, but many offer them through programs like Home Partners or military incentives.
Before picking an agent, ask how their rebate program works. Some companies apply the rebate toward closing costs, while others mail you a check after closing. Always read the terms so you know what to expect.
Can You Negotiate a Rebate With Any Real Estate Agent?
Yes, you can ask almost any agent if they’re willing to offer a rebate. Not every agent will say yes, but many are open to it, especially in competitive markets where buyers have more choices. The key is to ask politely and early in the process.
Try something simple like, “Do you offer commission rebates?” or “Would you be open to sharing part of your commission?” It’s a normal question, not a rude one. Agents understand that buyers want to save money, especially with today’s high home prices.
Keep in mind, agents in certain brokerages may have rules they have to follow. Some are allowed to offer rebates, while others aren’t. But it never hurts to ask, especially if you’re not asking for full service but just need help with paperwork and closing.
Can You Use a Rebate Toward Closing Costs or Down Payment?
Most of the time, yes, you can use a rebate to cover closing costs. That includes things like lender fees, title insurance, or escrow charges. It’s one of the easiest ways to lower the amount of cash you need at the closing table.
But using a rebate toward your down payment is trickier. Many lenders don’t allow that, since down payments usually have to come from your own money. If you’re hoping to apply the rebate there, check with your lender early so you’re not caught off guard.
Either way, the rebate has to be listed in your closing documents. That’s not just a rule, it’s the law. So if your agent offers you money back under the table, walk away. A legit rebate should always be aboveboard and lender-approved.
Is a Home Buyer Rebate Worth It?
In many cases, yes, getting a rebate is totally worth it. It’s money back in your pocket just for choosing the right agent. And in a time when homes are expensive and closing costs add up fast, that extra cash can really help.
But there’s a trade-off sometimes. Agents offering big rebates might provide fewer services. You might not get help with showings, negotiations, or inspections. So, it’s important to ask what’s included before you say yes to a rebate deal.
Think about what matters more to you: extra money at closing or full-service support during the process. Some buyers want hands-on help, others are fine doing more on their own to save money. There’s no wrong answer, just what works best for you.
Reilly’s Two Cents
I’ve worked with plenty of buyers in Florida who didn’t even know home buyer rebates were a thing. And I get it, when you’re focused on finding the right home, it’s easy to miss ways to save money. But when every dollar counts, even a small rebate can make a big difference.
If you’re thinking about asking for a rebate, do it early. Some agents are more flexible than others, but most won’t offer it unless you bring it up first. Keep it casual. Say something like, “Do you offer commission rebates?” That one question could save you thousands.
Also, think about how you’ll use that rebate. Will you apply it to your closing costs? Use it to furnish your new place? Or just tuck it into savings? Either way, plan ahead so the money helps you the most.
And one last thing, don’t trade a good agent for a big rebate. A great agent can save you more in negotiations than any rebate can. If you can get both? Even better.
Simple Way To Save Money
If you’re buying a home, asking for a commission rebate is a smart move. It’s a simple way to save money without doing much extra work. Whether you use it to cover closing costs or just pad your savings, a rebate can make your home purchase a little easier on your wallet.
Just be sure to ask early, check the rules in your state, and work with an agent who’s upfront about how it all works. Some will offer a flat rebate, others base it on the sale price, but either way, it’s worth the conversation.
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Frequently Asked Questions
A commission refund is money your agent gives back to you after the home purchase. A closing cost credit is when that money is applied directly to your closing expenses, lowering what you owe at the table.
No. They’re banned in Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. In other states, rebates are legal but must be disclosed and approved by your lender.
It depends on your agent and the purchase price. Many rebates are 0.5% to 1% of the sale price. On a $400,000 home, that could be $2,000 to $4,000 back.
Usually not. Most lenders don’t allow rebate money to go toward your down payment. But you can use it to cover closing costs or other moving expenses.
Typically, no. The IRS views most buyer rebates as a price adjustment, not income. But it’s always smart to ask a tax professional if you’re unsure.
Possibly. You can try negotiating or switch to an agent who does offer one. Many national brokerages and rebate-focused companies have agents ready to work with you.
Reilly Dzurick is a seasoned real estate agent at Get Land Florida, bringing over six years of industry experience to the vibrant Vero Beach market. She is known for her deep understanding of local real estate trends and her dedication to helping clients find their dream properties. Reilly’s journey in real estate is complemented by her academic background in Public Relations, Advertising, and Applied Communication from the University of North Florida.
