Examples
Buyers brokers can offer cash rebates in one of two ways.
Rebate type 1: The buyer’s broker rebates a percentage of the home’s sale price.
Example: rebate 2% of the sales price to the homebuyer.
| Sales Price: |
$
|
220000 |
| Commission Percentage: | 5% | |
| Rebate Percentage: | 2% | |
| Rebate Type: | % of sales price | |
| Total Commission: |
$
|
11000 |
| Buyer’s Broker Commission: |
$
|
5500 |
| Rebate to Buyer: |
$
|
4400 |
Rebate type 2: The buyer’s broker rebates a percentage of their commission.
Example: rebate two thirds (67%) of their commission to the homebuyer.
| Sales Price: |
$
|
220000 |
| Commission Percentage: | 5% | |
| Rebate Percentage: | 67% | |
| Rebate Type: | % of buyer’s broker commission | |
| Total Commission: |
$
|
11000 |
| Buyer’s Broker Commission: |
$
|
5500 |
| Rebate to Buyer: |
$
|
3685 |
Updated July 31, 2015