In which cities are real estate commission rebates becoming the norm?

A number of clients have asked us in which areas do you see a rise of commission rebate real estate agents (say that 10x fast) and while you may think this is a new phenomena, it’s actually existed under the radar for many years. Now, agents are incorporating this historically friends and family discount directly into their business model and oftentimes their business names.

Knowledge is always power so in the past, an online, easily accessible (from a UX standpoint) directory of listings didn’t exist so agents controlled what properties were available for sale. Unless there was a huge sign in front of house, most buyers wouldn’t have the slightest idea.

Now, to go back to the original topic, the simplest answer are cities in which there are high property values, low inventory, job growth, specifically in technology/innovation, high concentration of college graduates and modern real estate development projects.Chances are if the homes are being marketed heavily online by developers and agents, savvy buyers in the area are going into the home buying process with knowledge of commission rebates.

Now, the question of whether going with a discount or rebating realtor with that discount in the name is a good idea is a different story, which we’ll tackle next time.

Thoughts? Email us at

*Ask about our 60-40-20 Incentive*


How best to utilize your real estate agent’s commission rebate


The answer is, it depends. Is your market extremely competitive? If so, we’d recommend viewing your real estate commission rebate as a reduction of your out of pocket hard money costs associated with buying a home. Your goal should be to minimize the amount of money you need to pay out of pocket when purchasing a home. Think of it as the opportunity cost of having $5k in hand or borrowing an additional $5k over 30 years. While your long term holding costs and interest on that $5k will translate to much more, it’s more advantageous (at least in our eyes) to have the $5k in hand now so that you can leverage that to increase your offer amount.

Besides, once you’re in escrow, you can negotiate to recoup the increase in the form of a price reduction in exchange for removing contingencies throughout the process.

Thoughts anyone? It depends on the situation, but it a competitive market, usually the most important part of the offer is the price. End of story.

Thoughts? Email us at

*Ask about our 60-40-20 Incentive*

Commission Rebates based on time savings

Commission rebates proportionate to time saved


I just had a discussion with a rebating real estate agent (rebating realtor) colleague of mine and we discussed a new model that he’s been implementing that has saved his clients a lot of time and money.

Firstly, the most important thing for any buyer is to pre-approved by a lender to see what loan amount they qualify for. And at that point, always respond with yes if anyone asks if you are working with a realtor. We can’t emphasize how important that is as our goal is to save time and money.

Now to the model. 

The 60-40-20

Buyers receive a 60% commission rebate if an offer is accepted within the first week

Buyers receive a 40% commission rebate if an offer is accepted within the first month

Buyers receive a 20% commission rebate regardless of time


Pretty interesting and appealing isn’t it?

For more information about participating real estate agents, send us a note at

With firms like and upstarts like disrupting traditional real estate prices, it’s your duty as a buyer or seller to do your due diligence and explore all the time (which translates to money) savings you can benefit from.

How a commission rebate is applied

Many people have asked us how a commission rebate is applied as they want to make sure it isn’t taxable. Typically the commission rebate from your respective rebating realtor is applied towards your settlement or closing costs. If there is a remaining excess amount, we have it applied towards a reduction in the purchase price.

Some buyers have opted to have the entire commission rebate applied directly towards a reduction in purchase price but it’s a matter of preferences.

Feel free to visit other sites like redfin or to learn more about commission rebates in your area.

Thoughts? Email us at

*Ask about our 60-40-20 Incentive*

Save us time, we’ll save you money!

For savvy real estate buyers and sellers, leveraging your real estate’s time savings for commission rebates is not only smart, but a must in today’s modern market. Why not offset some or all of your closing costs by attending open houses on your own and conducting your own market analysis?

Thoughts? Email us at

*Ask about our 60-40-20 Incentive*