homerebates.com
  • Advanced Search
  • Rebate Program
  • Homes for the Brave
  • Instant Home Valuation
  • Get Pre-Approved
  • About
  • Contact Us
Login

Sign in to your account

Need to reset your phone number?

Don't have an account with us?

Click here to sign up.

Real Estate Search

TO
Advanced Search

Address Search

Are Rebates Legal? Yes.

Certain States Ban Rebates

In most states, brokers compete on price for consumers' business. However, ten states have enacted laws that forbid brokers from offering refunds, denying consumers the benefits of price competition and driving prices higher than they would be in a more competitive market.

States that ban brokers from offering rebates.

Department of Justice efforts to life rebate bans.

How do rebates work?

Some real estate brokers offer consumers cash refunds or non-cash incentives to encourage them to use that broker’s services. Rebates are typically cash payments from the real estate broker to his or her client after closing. Incentives may include gift certificates, closing-cost payments, or free ancillary services such as home inspections or moving services.

Learn more here.

How do rebates benefit consumers?

Rebates can save consumers several thousand dollars in a single transaction. For example, if a broker offers to refund one-third of its commission to the homebuyer, the average buyer of a $300,000 home could save $2,500 to $3,000 (based on the 2.5% to 3% commission rates typically earned by the buyer’s broker).

Incentives, such as gift certificates for a home inspection, merchandise at a nearby hardware store, or moving services, give consumers monetary benefits from the transaction that they otherwise would not have obtained.

Offering rebates and incentives is one way that real estate brokers can compete for consumers’ business, leading to lower prices to consumers.

Do refunds and incentives pose any risk to consumers?

Some have argued that refunds and incentives can tempt consumers into closing on real estate transactions against their best interests. The Antitrust Division has found no evidence that refunds and incentives harm consumers. On the contrary, they can dramatically lower the price that consumers pay for brokerage services.

Do real estate brokers support rebate bans?

Some brokers support rebate bans as a means of reducing price competition. For example, when the Kentucky Real Estate Commission surveyed brokers about lifting that state's rebate ban, here is what some of them said:

“If we give rebates and inducements, it would get out of control and all clients would be wanting something. The present law keeps it under control.”

“This would turn into a bidding war, lessen our profits and cheapen our ‘so-called’ profession.”

“If inducements were allowed, they could lead to competitive behavior, which would make us look unprofessional in the eyes of the public.”

“I think this would just take money right out of our pocket.”

Like or Share
Loading likes...

Address Search

Popular Areas in Community

Looking for the perfect home in the perfect place? Chances are you'll want to check here first.

Community Real Estate

  • Draper
  • Holladay
  • Hooper
  • Kaysville
  • Layton
  • Morgan
  • Murray
  • North Ogden
  • Riverton
  • Roy
  • Sandy
  • South Jordan
  • South Ogden
  • Syracuse
  • West Haven
  • West Jordan

Useful Information

  • Are Rebates Legal?
  • Home
  • Advanced Search
  • Homes for the Brave
  • Rebate Program
  • Foreclosures
  • About Us
  • Instant Home Valuation
  • Contact Us

Brent Cordon, Broker/Owner
Cell: (801) 208-2080
Broker@homerebates.com
Full Service, Commission Refunds.

© All Rights Reserved

 

  • Draper
  • Holladay
  • Hooper
  • Kaysville
  • Layton
  • Morgan
  • Murray
  • North Ogden
  • Riverton
  • Roy
  • Sandy
  • South Jordan
  • South Ogden
  • Syracuse
  • West Haven
  • West Jordan
IDX Real Estate Websites by
• Accessibility