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Scott Clayton's Blog

By Scott Clayton | Broker in Phoenix, AZ

AZ Home Buyers: Commission Rebates Save You Thousands!

Typically, real estate agents who represent home buyers receive a 3% commission when the buyer purchases a new or resale home.  The commission is based on the purchase price of the home.  So on a $300,000 home, the agent would receive a $9,000.00 commission.

There are a few realtors who share the real estate commission with buyers.  These commission rebates are 100% legal in most states and approved by the United States Department of Justice.  A rebate realtor can save home buyers thousands of dollars and provide full service representation.

For example, if the rebate realtor refunds 50% of the sales commission - 1.5% of the purchase price - a buyer would receive $4,500.00 on a $300K home purchase.  The rebate can be used to pay the buyer's closing costs, buy new appliances or furniture, or spent anyway the buyer chooses.

Many buyers don't realize new home builders pay a 3% (or more) commission to real estate brokers.  If the buyer doesn't have a realtor, the builder pockets the commission as extra profit.  Builders don't discount homes when buyers deal direct - they have a one-price policy.  So if buyers use a rebate broker to assist in their purchase, the commission rebate can be a substantial help with costs associated in buying a new home (landscaping, window treatments, etc.). (Search AZ Home Builders Here.)

With real estate commissions being so generous, rebates can be a "win-win" for both the buyer and the agent.

Scott Clayton
Champion Realty


By Ca Realtor,  Fri Sep 10 2010, 12:07
For some reason you neglected to include broker fees or our own costs in membership dues, gas, time, etc. Not to mention this figure you are throwing out there is gross, pre-taxed. Let's be a bit more clear with what realtors really make. When you put information like this out there for all to see that is inaccurate or incomplete you are doing a huge disservice to all of us Realtors. Next time, please be more accurate on what we actually make.
By Voices Member,  Fri Sep 10 2010, 14:20
Ca Realtor,
Why should a home buyer care about what your membership dues are or your gas costs?
By Fairplay,  Fri Jan 13 2012, 10:07
If a buyer asks for a rebate on commission I will in turn ask them if they will share the profit when they sell there home. Usually this will put a stop to there question as it is only fair if you have found them a good deal then they should be willing to share their profit with you if that is what they want you to do. It should be a fair playing field.

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