On this page
- What real estate rebates are
- How buyer agent commission works after the NAR settlement
- How a real estate rebate works, step by step
- How lenders treat real estate rebates
- Which states ban real estate rebates
- Real estate incentives for buyers besides a rebate
- What to watch for with real estate rebates
- A note for sellers
- Real estate rebates FAQ
- Your next step
A real estate rebate is part of the buyer’s agent commission that the agent gives back to you, either as a credit at closing or as a check afterward. Real estate rebates are banned or limited in some states. Also, since August 17, 2024, the NAR settlement rules have put the agent’s pay in a written buyer agreement. As a result, a rebate is now a term you negotiate and get in writing.
Some people searching for “mortgage rebates” mean a lender credit instead. That is a separate deal: the lender pays part of your closing costs, and in return you take a higher interest rate.
What real estate rebates are
With a rebate, the buyer’s agent hands part of their commission back to the buyer. It can arrive as a credit on your Closing Disclosure, which lowers your cash to close, or as a check after closing. However, lenders treat those two versions differently.
Two other kinds of help look similar, but they come from someone else.
| Type of help | Who pays | How it works |
|---|---|---|
| Real estate rebate | Your agent, from the commission | Credit at closing or check after closing |
| Seller concession | The seller | Credit toward your closing costs, set in the purchase contract |
| Lender credit | The lender | Credit toward closing costs, tied to a higher interest rate |
How buyer agent commission works after the NAR settlement
The National Association of Realtors (NAR) settled lawsuits brought on behalf of home sellers over broker commissions. Its practice changes took effect on August 17, 2024. So if you searched for when buyers would “get a rebate” under the settlement, that date marks the rule changes. Still, nothing in those changes pays buyers directly.
According to NAR’s settlement summary, these changes matter most to a buyer:
- An agent who uses a multiple listing service (MLS) must sign a written agreement with you before you tour a home together, in person or by live video.
- The agreement must state the agent’s pay as a set figure, such as a flat fee, a percentage or an hourly rate.
- In addition, the agent cannot collect more from any source than the agreement allows.
- Offers to pay the buyer’s agent can no longer appear on the MLS, although sellers can still make them off the MLS.
NAR policy does not require the agreement to be exclusive. State law can add its own rules, so ask how your state applies them.
Who pays the buyer’s agent now
The seller or the listing firm can still offer to pay your agent. If that offer falls short of the fee in your agreement, you owe the difference, according to the North Carolina Real Estate Commission. You can also ask for a seller concession and use it as you choose. Our guide on how to make an offer on a house covers how that request fits into your offer.
Why the settlement matters for real estate rebates
Because you now see your agent’s fee in writing before you tour, the buyer agreement is the natural place to ask for a rebate. If the seller pays your agent’s full fee, a rebate returns part of it to you. But if you pay the fee yourself, a lower fee does the same job with less paperwork.
How a real estate rebate works, step by step
- Ask before you sign. When you find a real estate agent to interview, ask whether they offer a rebate and how they figure it.
- Put the terms in the buyer agreement. Write down the amount or formula, when it is paid, the form it takes and any conditions.
- Tell your lender early. Mention the rebate when you apply for mortgage pre-approval, because it affects how the lender handles credits.
- Check the Closing Disclosure. The rebate should appear there. Afterward, keep the agreement with your closing papers.
Already signed without a rebate? NAR notes that you and your agent can agree to change the agreement. Otherwise, see our guide on how to fire your real estate agent.
How lenders treat real estate rebates
Lenders count your agent as an interested party, like the seller or the builder. So a rebate falls under the rules for interested party contributions.
Conventional loans sold to Fannie Mae. Under Fannie Mae Selling Guide B3-4.1-02, a rebate credited toward closing costs counts as a financing concession. It shares a cap with seller credits, and it cannot exceed your actual closing costs. In contrast, a rebate paid outside the transaction is a sales concession, so the lender subtracts it from the price before figuring your loan-to-value (LTV) ratio. Also, a contribution left off the settlement statement makes the loan ineligible for sale to Fannie Mae.
FHA loans. HUD Handbook 4000.1 also names real estate agents as interested parties. Contributions above your closing costs, or above FHA’s limit, count as an “inducement to purchase.” In that case, they lower the property value dollar for dollar before the LTV limit applies. The lender must document the contribution on the Closing Disclosure.
VA and USDA loans have their own rules, so tell your lender before you agree to a rebate.
A hypothetical example
These numbers are an illustration only, with no typical rebate implied. Say a buyer uses a conventional loan with a $400,000 price and appraised value, 10% down ($40,000), a $360,000 loan, $12,000 in closing costs and a $3,000 rebate. Rate, term, taxes and insurance do not affect this math.
- As a credit at closing: cash to close drops from $52,000 ($40,000 plus $12,000) to $49,000. Meanwhile, the LTV stays at 90% ($360,000 divided by $400,000).
- As a check after closing: the buyer brings $52,000 to closing. Then the lender uses $397,000 as the price, so the LTV becomes 90.68% ($360,000 divided by $397,000). That higher bracket allows smaller financing concessions under Fannie Mae’s rule.
See our guide to closing costs for what goes into that cash figure. Whether a rebate changes the price you paid for tax purposes is a separate question, so ask a tax adviser.
Which states ban real estate rebates
Rules differ by state, and they change. We checked three states’ current rules on October 30, 2026:
- Oregon. ORS 696.290 bars a licensee from rebating any part of their pay to anyone who is not a licensee, except a 501(c)(3) charity.
- Tennessee. Rule 1260-02-.33, as amended in 2025, bars cash rebates and similar cash incentives tied to a transaction. However, it allows a gift card as a closing gift.
- Kansas. K.S.A. 58-3062(a)(3) bars a licensee from giving “any rebate or undisclosed commission.”
Other states also limit rebates or incentives. For that reason, check your state real estate commission’s website. Then ask any agent you interview whether state law and their brokerage allow a rebate, and whether it must be a closing credit.
Real estate incentives for buyers besides a rebate
A rebate is one of several real estate incentives for buyers:
- Seller concessions. The seller pays some of your closing costs. Each loan program caps these, and our guide to seller contribution limits lists them.
- Builder incentives. A builder may offer closing cost help or an interest rate buydown. Because builders are interested parties, those count toward the same caps.
- Lender credits. The lender covers some closing costs in exchange for a higher rate. Fannie Mae and FHA generally leave these out of the interested party limit.
What to watch for with real estate rebates
- The price. A rebate does not help if you overpay for the house, so compare the net cost.
- Limits on your home choice. Some rebate terms apply only when the seller pays the agent’s fee, which can steer you toward certain listings.
- The level of service. Some rebate agents work mostly online or offer fewer showings.
- Negotiation. Ask whether the agent will still push for price and repairs.
- The credit cap. If your closing costs come in below the rebate, ask your lender how it handles the excess.
A note for sellers
A listing agent may offer a reduced listing fee or a flat fee, so ask when you interview agents. Also decide whether to offer to pay a buyer’s agent, since that pay is now negotiated off the MLS. See our tips for selling your home.
Real estate rebates FAQ
Can a real estate agent give you a rebate?
Yes, where state law allows it. However, Oregon, Tennessee and Kansas bar it.
How much cash back can you get from a real estate agent?
It depends on what you and the agent agree to in writing. Also, your loan program limits how much can be credited at closing.
Are real estate rebates legal in every state?
No. Some states ban or limit them, so check your state real estate commission first.
Do rebates affect my mortgage?
They can. Lenders treat a rebate as an interested party contribution that counts toward credit caps. A rebate paid outside closing can also lower the price used for your LTV.
Do buyers still get a rebate after the NAR settlement?
They can, if the agent agrees and state law allows it. Since August 17, 2024, your agent’s fee has been set in a written agreement, so negotiate the rebate there.
Your next step
Real estate rebates depend on your state, your agent and your loan. Before you tour, ask about a rebate and get the terms in the buyer agreement. Then tell your lender.
For the rest of the process, see our first-time home buyer’s guide.
