1-877-RBATES-1 or 1-877-722-8371

The 10 Most Pressing Questions We Encounter…

Q: How can ResidentialRebates provide rebates…I thought they were illegal?

A: Rebates are not an urban myth, as some might think…they are indeed LEGAL in practically every state EXCEPT Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, New Jersey and Oklahoma.In the states where rebates are legal, principals (i.e. Buyers, Sellers or Realtors) are the only parties that are allowed to benefit financially from a real estate transaction.

The harsh reality is that Rebates are not very popular amongst the general population of real estate professionals nationally.  Most Realtors make their living by keeping all of their commission, provided by the seller or builder at closing, which is typically 3% of the sales price on a Home.

Finally, ResidentialRebates Realtors can provide rebates because our system relies on Home Buyers that actively complete most of the upfront research and groundwork.  Buyers rely on us to quite frankly, “Show them the money” at closing.  Our Realtors make their living on volume business or simply by helping serious Home Buyers secure their dream of Home Ownership!

Q: If the Builder offers less than 3% commission, how will a Rebate be computed since you basically yield 2% to the Buyer?

A: This is typically a rare occurrence; however, if the Builder indeed offers less than 3% commission, the gift that we provide to the Buyer will be prorated appropriately: 2/3 to the Buyer and 1/3 to the ResidentialRebates Realtor.

Example: Acme Builder offers 2% commission on a $100,000 Home purchase; in this scenario, the total sales commission would yield $2,000 - of which, the Buyer would receive a $1,333.33 Rebate, while the ResidentialRebates Realtor receives $666.67, at closing.

Q: There’s no such thing as a “free lunch”…how are Rebates “FREE” money?

A: While the adage is true in most cases, it’s false with regard to Rebates, at or after closing.  Rebates are indeed FREE money to the Buyer.  Contrary to popular misconception that commissions are ultimately paid by the Buyer or that a Realtor’s compensation increases the cost of the Buyer’s home, commissions are truly and solely the expense of the Seller or Home Builder.

The Builder/Seller basically allocates 6% of a home’s asking price as a sales (commissions) expense.  Of the total commission, 3% goes to the agent that represents the Seller or Builder and the remaining 3% goes to the Buyer’s agent.  If the Buyer goes into the Builder’s office without a Realtor, the Builder seizes the opportunity to collect the entire 6%!

Never go into a Builder’s office without enlisting a ResidentialRebates Realtor…don’t leave money on the table!  It doesn’t cost you anything to do so…however, going at it alone could become quite an expensive lesson for the Buyer!

Q: Do we work exclusively with certain Builders or can a Rebate be received from any Builder?  

A: ResidentialRebates is not affiliated with any particular Home Builder (i.e. KB Home, Pioneer, etc.).  Our sole responsibility and allegiance is to our Buyer.

Buyers are free to use any Builder to receive a Rebate!

NOTE: The Buyer must enlist a Realtor, prior to entering into agreement with the Builder or she/he could potentially forfeit the chance to receive a Rebate on an agreed upon Home purchase.

Q: How exactly does the Buyer receive a Rebate?

A: After the Buyer enlists a ResidentialRebates Realtor, decides on a specific Builder and enters into an agreement to purchase a new Home, the Rebate will show up as a credit on the Buyer’s HUD-1 (or settlement statement) at closing.  In short, a Rebate will enable the Buyer to come to closing with less (or sometimes without) money out-of-pocket.

Example: Buyer’s closing costs are $3,775 on a $107,525 Home purchase.  At closing, the Buyer would receive $2,150.50from ResidentialRebates as a FREE CASH REBATE; the Rebate will be captured on the HUD-1 Settlement Statement and will require that the Buyer only bring $1,624.50 ($3,775 - $2,150.50) to closing vs. bringing the entire $3,775, which the Buyer would have ordinarily been responsible for, without the Rebate.


Q: Why aren't Rebates given accross the board by all Realtors?

A: The subject of Rebates leaves a bad taste in the mouths of many Brokers and Realtors across the country.Rebates are basically gifts that the Buyer can use to reduce their out-of-pocket expenses; however, the Buyer's gain is often seen as a loss to the typical Realtor/Broker.Most agents earn their sole living based on the commission received from the real estate transaction.Oftentimes, the Realtor has to divvy their commission check with their sponsoring Broker.So, the misconception amongst many agents is that providing a Rebate is synonymous to leaving a hole in their pockets, which ultimately results in forgone income for them.

ResidentialRebates Realtors don't adhere to this belief...we see a great opportunity in helping Home Buyers that are actually capable of doing a great deal of the upfront legwork.  In fact, we owe it to ourselves to share the wealth, instead of hoarding it, when everyone indeed plays their respective parts during the real estate transaction!


Q: After receiving a Rebate, are there other incentives for using your organization?

A: ResidentialRebates is an organization fostered on the belief that, ''The more one gives, the more one receives.''  As a result, we created our “Cheerful Giver Bonus Program,” specifically to underscore our belief in unconditional giving.

Out of our commission portion (the balance that our Realtors receive, after the Buyer has been compensated for their Rebate), ResidentialRebates will cheerfully gift 10% to any named church, nonprofit or charitable organization that the Buyer deems.  The gift will be donated on behalf of both the Buyer(s) & ResidentialRebates, after closing.