The Department of Justice maintains a Rebate Calculator which you can use to estimate how much you might receive at closing. All commissions vary from house to house so the actual amount received will vary from the results generated here. Since the average commission paid to the selling broker in our area ranges from 2% to 2 1/2% of the sales price our suggestions for using this calculator are to :
- 1) Enter 5% as the Commission Percentage. (remember these amounts will vary)
- 2) Enter 50% as your Rebate Percentage.
- 3) Mark the Radio Button % of buyer’s broker commission.
- 4) Hit Calculate for your bottom line result.
At closing you walk away with thousands of dollars more in your pocket than the buyers across the street
NATIONAL REGULATIONS ON REBATES
Some states ban brokers from offering cash rebates to consumers.
*** Indicates states that prohibit rebates.
For a complete listing, see Guide to State Real Estate Laws and Regulations.
The Division investigates state commissions and other bodies that regulate real estate brokers in ways that restrict licensed brokers from offering rebates. The Division also informs states about the competitive effects of real estate legislation.
Cautionary Note: Under rare circumstances some Lender Loan Program Requirements could limit or prevent the rebate if it were to exceed the combined amount of all closing costs. You should discuss this rebate with your lender when making application, have them explain any scenarios which might bring this into play and decide in advance on how best to avoid any possible restrictions they might have. Any such restrictions can normally be avoided on most loan programs when planned in advance so talk early and talk often.