How Real Estate Commission Rebates Work (and How to Get the Best One)
Most home buyers don't realize they can negotiate their real estate agent's commission and get a portion of that commission back as a buyer rebate. With the right approach, commission rebates can save you thousands in closing costs, giving you more flexibility in your home purchase.
In this guide, we'll explain:
- • What a real estate commission rebate is
- • How it works step-by-step
- • How buyers usually receive the money
- • How to get the highest rebate by letting agents compete for you
What Is a Commission Rebate in Real Estate?
A commission rebate (also called a buyer rebate or commission refund) is when your real estate agent gives you part of their commission back at the end of a home purchase.
Here's how a typical commission structure works in the U.S.:
• The seller pays a commission (often 5–6% of the sale price) to be split between the seller's agent and the buyer's agent.
• The buyer's agent's share is usually 2.5–3%.
• If your agent offers a rebate, they give you a percentage of their commission back.
Home price: $500,000
Buyer's agent commission (3%): $15,000
Agent offers a 25% rebate: $3,750 back to you
How Buyers Receive Commission Rebates
From our research, most buyers receive commission rebates in one of two ways:
The most common method. Your rebate is applied directly to your closing costs, lowering the cash you need to bring to closing.
In some cases (with lender approval), you might receive a check or wire transfer after the deal closes.
Rebates are legal in most U.S. states but banned in a few, including Alabama, Alaska, Kansas, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. Always confirm legality in your state.
Why Agents Offer Rebates
Agents offer rebates to:
- Win your business in competitive markets
- Stand out against other agents
- Close more transactions, even at a slightly reduced commission
In fact, with recent changes in real estate commission rules, it's now easier than ever to negotiate commission rates or request a rebate upfront.
The Problem With Traditional Negotiation
You can call or meet with agents and ask for a rebate, but:
- ×It's time-consuming
- ×You don't know if you're getting the best offer
- ×Many agents won't mention rebates unless you ask
As a result, most buyers stick with the first agent they meet — and miss out on thousands in potential savings.
How Perchnow Helps You Get the Best Rebate
We created a platform that flips the process in your favor:
Get your offer strategy
We provide market data, pricing guidance, and bidding tactics tailored to the home you want.
Agents bid for your business
They compete by offering rebates and showing you their service approach.
Choose the best fit
You compare agents based on rebate amount, experience, and reviews — before you commit.
Instead of awkwardly negotiating with one agent at a time, you create a competitive environment where agents put their best rates forward from the start.
Real-World Example
Let's say you're making an offer on a $650,000 home:
You pick Agent B, apply the rebate as a closing cost credit, and reduce your cash needed to close by almost $6,000.
Key Takeaways
- A commission rebate is a portion of your agent's commission returned to you at closing.
- Most rebates come as a closing cost credit, but sometimes as post-closing cash.
- You don't have to accept a “standard” commission rate — rebates are negotiable.
- Perchnow makes it easy to compare agents and secure the highest rebate without endless back-and-forth.
Bottom Line
Commission rebates are one of the easiest ways to save thousands when buying a home. The smartest approach isn't just to ask for one. It's to create a situation where agents are motivated to give you their best possible rebate. That's exactly what our platform is built to do.