Real Estate Commission Rebate Calculator
Calculate how much you can save with commission rebates
About Buyer Commission Rebates
What is a buyer rebate? A commission rebate is when a real estate agent returns a portion of their commission to you, the buyer. This can significantly reduce your closing costs.
How it works: The seller typically pays the full commission (5-6%), which is split between agents. Your agent can rebate part of their share to you, depending on state laws and brokerage policies.
Reducing Seller Commission Costs
Negotiate commission rates: Many sellers successfully negotiate lower commission rates, especially in competitive markets or for higher-priced homes.
Flat-fee listings: Some brokers offer flat-fee MLS listings where you pay a set fee rather than a percentage.
Discount brokers: Discount real estate brokers may offer lower rates while still providing full service.
This tool helps home buyers estimate potential cash back (commission rebates) when using a rebating real estate agent.
How Commission Rebates Work
Standard Buyer Agent Commission = Typically 2.5-3% of purchase price
Rebate % = Agent shares part of their commission with you (varies by state laws)
Your Cash Back = A portion of the buyer agent's commission
States Allowing Rebates:
✅ Most states (including TX, FL, GA, OH, PA)
⚠ Some restrictions (e.g., OK limits to $750)
❌ Banned in: AL, AK, IA, KS, LA, MO, MS, ND, NJ, TN, WV
Rebate Calculation Formula
Example:
Home Price: $400,000
Buyer Agent Commission: 3%
Rebate Offered: 50%
Rebate = $400,000 × 0.03 × 0.50 = $6,000 cash back
Rebate Scenarios by Home Price
| Home Price | 1% Rebate | 50% Rebate (3% Commission) | 66% Rebate (3% Commission) |
|---|---|---|---|
| $300,000 | $3,000 | $4,500 | $5,940 |
| $500,000 | $5,000 | $7,500 | $9,900 |
| $750,000 | $7,500 | $11,250 | $14,850 |
(Assumes buyer agent commission of 3%)
How to Maximize Your Rebate
Compare rebate agents (Typical rebates: 30-66% of buyer agent commission)
Verify state laws (Some limit rebate amounts)
Negotiate (Higher rebates possible on luxury homes)
Check lender rules (Some mortgages restrict rebates over 2%)
Try the Calculator
Enter your numbers:
Home Purchase Price: $_______
Buyer Agent Commission: ___% (Usually 2.5-3%)
Rebate Percentage: ___% (Common: 30-66%)
Your Estimated Rebate = $________
FAQs
❓ Are rebates taxable?
→ Usually not taxable income (treated as closing cost reduction).
❓ Do rebates affect my loan?
→ Most lenders allow it if applied to closing costs (not cash back after closing).
❓ How is the rebate paid?
→ Typically a check at closing or credit toward fees.
States with Best Rebate Deals
🏆 Texas (No limits, 1-2% rebates common)
🏆 Florida (Avg 1.5-2% back)
🏆 Ohio (Up to 66% rebates allowed)
Need help finding rebate agents in your area? Ask for recommendations! 🏡💵