How to Apply a Commission Rebate Toward Your Closing Costs
Buying a home comes with plenty of expenses—but did you know you can offset some of those costs with a commission rebate from your real estate agent?
In Colorado and many other states, buyers can legally receive a portion of their agent’s commission as a rebate at closing. It’s one of the smartest ways to reduce out-of-pocket costs—especially when you’re already doing much of the legwork by finding homes online yourself.
Here’s how it works—and how you can use it toward your closing costs.
💸 What Is a Commission Rebate?
A commission rebate (also called a buyer rebate or commission refund) is when your agent gives you a portion of the commission they earn from the sale. For example, if your agent earns 2.5% of the purchase price, they may offer to give you 50% of that back at closing.
At EZ Agents, we split our commission 50/50 with buyers—saving clients thousands on their home purchase.
🏡 Can You Use the Rebate Toward Closing Costs?
Yes. In most cases, your rebate can be applied directly to your closing costs, which typically include:
- Loan origination fees
- Title insurance
- Appraisal costs
- Recording fees
- Escrow fees
- Prepaid taxes and insurance
Instead of paying those out of pocket, your rebate shows up as a credit on your Closing Disclosure (CD), reducing how much cash you need to bring to the table.
✅ How to Apply a Rebate at Closing (Step-by-Step)
- Work with a participating agent. Not all agents offer rebates—so choose one that does, like EZ Agents.
- Negotiate and document the rebate. Your rebate should be outlined in your buyer agreement or a separate addendum.
- Inform your lender early. Let your mortgage lender know you’ll be receiving a rebate. It must be disclosed on your loan estimate and CD.
- Apply the rebate as a buyer credit. At closing, the rebate appears as a credit—lowering your total cash to close.
💡 Example: How Much Could You Save?
Let’s say you’re buying a $600,000 home.
Your buyer’s agent earns a 2.5% commission ($15,000).
With a 50% rebate, you get $7,500 back.
If your closing costs are $9,000, that rebate covers most of them—leaving you with just $1,500 to pay out of pocket.
🚫 A Few Things to Watch Out For
- Lender restrictions: Some lenders may cap how much you can receive in credits.
- Cash vs. credit: Rebates are usually applied to closing costs or prepaid expenses, not as cash back.
- State laws: Rebates are legal in most states, including Colorado—always check with your agent and lender.
📈 Why It Matters Now More Than Ever
With today’s high home prices and increased closing costs, every dollar counts. A commission rebate lets you keep more of your money—without sacrificing the guidance of a top local agent.
Learn more about how our rebate program for Colorado buyers works.
💬 Final Thoughts
If you’re buying a home and doing most of the search work yourself, there’s no reason not to get rewarded for it. A commission rebate is a smart, legal, and effective way to lower your upfront costs—especially when used toward closing.
EZ Agents has already returned over $1 million in rebates to Colorado buyers.
We’ll help you find the right home, navigate the paperwork—and put thousands back in your pocket.
🧠 FAQ: Commission Rebates and Closing Costs
Can I use a real estate commission rebate to pay for closing costs?
Yes. In most cases, a real estate commission rebate can be applied directly to your closing costs as a buyer credit. This includes expenses like lender fees, title insurance, and prepaid taxes or insurance.
Are commission rebates legal in Colorado?
Yes, commission rebates are 100% legal in Colorado. The U.S. Department of Justice encourages rebates because they promote competition and save money for home buyers.
How do I get a commission rebate in Denver?
To receive a rebate in Denver, work with a buyer’s agent who offers rebates, like EZ Agents. The rebate is typically documented in your buyer agreement and credited to you at closing.
Does my lender need to know about the commission rebate?
Yes. Your lender must be informed early in the process so the rebate can be properly disclosed on your Loan Estimate and Closing Disclosure.
Will I get the rebate as a check or credit?
Most often, the rebate is applied as a credit toward closing costs on your final settlement statement. It’s rarely issued as a physical check due to legal and lender restrictions.
How much can I save with a rebate?
That depends on the home price and your agent’s commission. With EZ Agents, we split our commission 50/50—meaning buyers in Denver often get $5,000–$10,000 back on average.
Can I still get a rebate if I find the home myself?
Absolutely. In fact, that’s exactly who commission rebates are designed for. If you found the home on Zillow or Redfin and just need expert help with contracts, inspections, and closing, EZ Agents gives you 50% of the commission back.
🎯 Ready to Get Started?
📲 Contact EZ Agents today to claim your rebate and start your home search the smart way.