If you\u2019ve heard you can get money back when you buy a home, you probably have questions. Starting with the obvious one: is it actually true?<\/p>\n\n\n\n
The short answer is yes. A home buyer rebate is real money \u2014 a portion of your agent\u2019s commission returned to you at or after closing. But there\u2019s more to it than the pitch. Not every state allows rebates, not every agent offers them, and the amount you actually receive depends on your loan type, lender approval, and which company you\u2019re working with. And since the real estate commission<\/a> landscape changed significantly after the NAR settlement took effect in August 2024, the math around rebates looks different than it did even two years ago.[1]<\/span><\/p>\n\n\n\n Whether a rebate is your best path to savings (or whether negotiating a lower commission upfront makes more sense) depends on your specific situation. Here\u2019s what you need to know to make that call.<\/p>\n\n\n\n A home buyer rebate is a portion of the buyer\u2019s agent\u2019s commission that gets returned to the buyer. You might hear it called \u201ccash back at closing,\u201d a \u201ccommission refund,\u201d or a \u201cbuyer rebate.\u201d They all mean the same thing.<\/p>\n\n\n\n Here\u2019s how the money flows: When you buy a home, the total real estate commission averages 5.70% of the purchase price, according to a Clever Real Estate survey of 533 agents conducted in February 2026.[2]<\/span> That commission gets split between the listing agent and the buyer\u2019s agent. The buyer\u2019s agent\u2019s share currently averages 2.82%.<\/p>\n\n\n\n With a rebate, the buyer\u2019s agent returns a percentage of that commission to you. On a $398,000 home (the current U.S. median existing-home sale price), the buyer\u2019s agent earns roughly $11,224. A 25% rebate on that amount puts $2,806 back in your pocket.[3]<\/span><\/p>\n\n\n\n But there\u2019s an important detail most people miss: a rebate can reach you in two different ways, and they\u2019re not interchangeable.<\/p>\n\n\n\n \u201cThere are two primary mechanisms by which a rebate flows,\u201d says Daniel Cabrera, owner and founder of Sell My House Fast SA TX<\/a>. \u201cThe first is a credit applied on the settlement statement, reducing cash needed at closing. The second is a check sent to the buyer after closing, in which case there is no lender involvement whatsoever.\u201d<\/p>\n\n\n\n That distinction matters because a closing credit requires lender approval, and some loan types cap how much credit you can receive. A post-closing check sidesteps the lender entirely, but not every company offers it.<\/p>\n\n\n\n These three terms get confused constantly. Here\u2019s how they break down:<\/p>\n\n\n\n At the current median home price and average buyer agent commission, the buyer\u2019s agent earns about $11,224. A 25% rebate would return roughly $2,806. A seller concession might cover $5,000\u201310,000 in closing costs but comes from a different source and is negotiated separately.<\/p>\n\n\n\n The real estate commission landscape shifted in August 2024, and it directly affects how rebates work.<\/p>\n\n\n\n The NAR settlement \u2014 a $418 million agreement that took effect August 17, 2024 \u2014 decoupled buyer agent compensation from the MLS[1]<\/span>. Two changes matter most here: buyer representation agreements are now mandatory before home touring, and buyer agent commissions are negotiated directly with the buyer rather than offered by the seller through the MLS.[4]<\/span>Despite early predictions that commissions would drop permanently, that hasn\u2019t happened. Clever\u2019s 2026 commission survey<\/a> shows total commissions have rebounded to 5.70%, up from 5.32% immediately after the settlement. The buyer agent share climbed from 2.38% to 2.82%.[2]<\/span><\/p>\n\n\n\n Since buyers now sign a representation agreement before touring, the commission conversation happens upfront, before anyone walks through a single property. That fundamentally changes the rebate dynamic.<\/p>\n\n\n\n \u201cNow that buyer representation agreements are required before touring, the commission conversation happens upfront,\u201d says Matt Bigach, cofounder of Nexus Homebuyers<\/a>. \u201cNegotiating a lower commission percentage in the buyer agreement almost always saves the buyer more money than asking for a rebate after the fact. A rebate is still calculated on the original commission amount, so you\u2019re getting back a portion of a number that could have been lower from the start.\u201d<\/p>\n\n\n\n One more thing to watch for: if you\u2019ve requested a home tour through Zillow or a similar platform, you may have already signed a buyer representation agreement without realizing it. Multiple buyer forums flag this as a common trap, and if you\u2019ve already signed, your options for switching to a rebate agent may be limited until the agreement expires or you negotiate an exit.<\/p>\n\n\n\n Buyer rebates are legal in 41 states plus Washington, D.C. The U.S. Department of Justice actively supports rebate legality as a pro-competition measure, arguing that commission rebates lower costs for consumers and encourage price competition among agents.[5]<\/span> [6]<\/span><\/p>\n\n\n\n Nine states currently ban buyer rebates: Alabama, Alaska, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. Iowa allows rebates only in dual-agency transactions, which are relatively uncommon.<\/p>\n\n\n\n If you\u2019re wondering whether this is some kind of shady kickback arrangement: it\u2019s not. Kickbacks involve a third party funneling money under the table. A rebate is an agent voluntarily sharing a portion of their own commission with the buyer, disclosed on the Closing Disclosure, and endorsed by the DOJ. If your state allows it, it\u2019s a legitimate way to reduce your costs.<\/p>\n\n\n\n That said, check your state\u2019s current rules before assuming you qualify. State real estate commissions update their regulations periodically, and what was true last year may not be true now.<\/p>\n\n\n\n Your savings depend on three things: the home\u2019s purchase price, the buyer agent commission rate, and the rebate percentage the company or agent offers.<\/p>\n\n\n\n Here\u2019s the math on a $398,000 home \u2014 the current U.S. median \u2014 with a 2.82% buyer agent commission ($11,224):<\/p>\n\n\n\n The actual amount varies by company, program structure, and lender approval. The interactive savings calculator on the live page lets you estimate your specific savings based on your home price, commission rate, and rebate level.<\/p>\n\n\n\n Several companies offer buyer rebate programs, but their structures, restrictions, and availability vary widely. Here\u2019s how the major options compare on a $398,000 home with a 2.82% buyer agent commission ($11,224):<\/p>\n\n\nWhat is a home buyer rebate?<\/h2>\n\n\n\n
Rebate vs. seller concession vs. lower commission<\/h3>\n\n\n\n
\n
How the NAR settlement changed buyer rebates<\/h2>\n\n\n\n
What changed in August 2024<\/h3>\n\n\n\n
How the buyer representation agreement affects rebates<\/h3>\n\n\n\n
Are home buyer rebates legal?<\/h2>\n\n\n\n
How much can you save?<\/h2>\n\n\n\n
\n
Companies that offer home buyer rebates<\/h2>\n\n\n\n
Company<\/th> Rebate structure<\/th> Key restrictions<\/th> States<\/th> Savings on $398K<\/th><\/tr><\/thead> Clever Real Estate<\/a><\/td> Up to $500 cash back after closing<\/td> Homes over $150K; must use Clever agent<\/td> 42 states<\/td> $500<\/td><\/tr> Redfin Sign & Save<\/a><\/td> 0.25% of purchase price (0.5% for Premier)<\/td> Must sign buyer agreement before 2nd tour; close within 180 days<\/td> ~25 states + DC<\/td> $995\u2013$1,990<\/td><\/tr> Prevu Smart Buyer<\/a><\/td> Up to 1% of purchase price<\/td> Limited markets only<\/td> 12 states<\/td> Up to $3,980<\/td><\/tr> Trelora<\/a><\/td> Up to 50% of buyer agent commission<\/td> Capped at $6,000 for homes under $350K<\/td> Limited markets<\/td> Up to $5,612<\/td><\/tr> Houwzer<\/a><\/td> Up to 50% of buyer agent commission<\/td> Salaried agents<\/td> Mid-Atlantic, Southeast<\/td> Up to $5,612<\/td><\/tr> SimpleShowing<\/a><\/td> Up to 50% of buyer agent commission<\/td> Rebate decreases after 5+ tours<\/td> FL, GA, TX<\/td> Up to $5,612<\/td><\/tr><\/tbody><\/table>