What is a buyer commission rebate?
A modern approach to buying a home used by savvy home buyers to save thousands in closing costs and agent fees.
Definition:
A buyer commission rebate is a credit given to you from your agent to reduce your closing costs. It is deducted from your buyer’s agent's commissions. You (the buyer) pay nothing to receive this commission credit.
Why would you give up half your commission?
We specialize in working with a specific type of buyer. Our buyers generally know where they are looking and what they are looking for in a home and often are already spending hours of their own time looking through online listings and photos. They do not need, or want, an agent to try to find and tell them what home to buy. But they do need an agent to handle the rest including:
- Scheduling in person showings
- Writing and negotiating an offer
- Handling inspection and inspection objections
- Navigating all the dates and deadlines until closing
As Denver buyer’s agents, this saves us a significant amount of time and allows us to work with more buyers and thus pass the savings on to you. Additionally, simply put we believe that buyers should have another option than the one size all agent model, where no matter how much a discount buyers agent does, they keep the full commission. A commission that can often be tens of thousands of dollars.
How much do I get in a home buyer rebate?
We split the commission 50/50 with you.
Traditionally in Colorado the commission paid to a buyers agent is 2.8% (although this can vary and can range anywhere from 2.5-3%). A good example of how a real estate buyer rebate works is below.
Purchase price: $750,000
Buyers Agent Commission: 2.8%
Your Rebate: $10,500
Are home buyer rebates legal?
Yes! Real estate buyer rebates are legal in 40 out of 50 states. In fact, they are encouraged by the the United States Department of Justice as a way to increase competition amongst agents and create the best opportunities for home buyers. By law, commissions are negotiable.
Are home buyer rebates taxable?
Use the commission to pay closing costs and prepays
Since buyers are not licensed agents they cannot receive a commission check and thus it comes in the form of a real estate buyer rebate which is applied on your settlement sheet at closing. This process is generally referred to as realtor cash back at closing, where the rebate appears directly in your final closing documents as a credit.
There are many ways the home buyer rebate can be applied such as paying your closing costs or buying down your interest rate to name a couple. But because the money is received as a rebate and not income it is not considered taxable.***
*** This is not financial advice. All buyers should contact an accountant with any tax questions.
What a great find! It’s nice to see a real estate firm changing the system to align with the way people shop for homes today. We got proactive notices every step of the way - these guys are on top of it! The best part was getting a rebate at closing that paid for nearly all closing costs! If you like to search for your own home, this is the only way to buy.
Mike Schulte
Saved $7,938
It was an absolute pleasure working with Steve Novak at EZ Agents. His business model, where he rebates 50% of the buyer's agent commission, provides exactly as much service as needed, and doesn't waste the clients money. This is how buyer's agency should be run by everyone. I strongly recommend Steve Novak without any hesitation
Anton Eagle
Saved $12,411
Working with Steve went exactly as he said it would… Steve did all the usual agent stuff like negotiate the offer, handle the paperwork, coordinate with the lender and title company, and walk you through the process. At purchase, his credit was applied to our closing costs. We used it to buy down points.
Nick P.
Saved $5,849
Finally a real estate agent that is buyer friendly. He makes the home buying process convenient and kicks back 50% of the commission. We got almost $11,000 back and it covered our closing costs and bought down points on the loan. Literally saved us a ton of money. A real innovator that is working within the 'rules of the old guard' that is inefficient and costly.
Craig Baute
Saved $10,709
These days, you’re doing the research and finding listings you want to see anyway, so splitting the work (and the cost) makes sense. Seriously the best way to buy a home, and I plan on recommending Steve to everyone I know who is looking to buy.
Zach Z.
Saved $16,141
Steve is on to something - he’s providing real value in a different model, disrupting real estate in a way that’s all about serving his client. We couldn’t be happier.
Steve and Sue Kloos
Saved $14,345
Send me listings
Ready to start searching for homes? Let us know where and what you're looking for and start receiving listings direct from the MLS keeping you up to date with the newest listings.
What you'll save when you work with us
Save big on your next real estate purchase
Stop paying outdated real estate fees for services you are not using.
Experience the new approach to home buying.