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.).

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