What are commission rebates?
To understand commission rebates, you first need to understand how real estate agents get paid.
Let's start with "Real Estate Commissions."
Home Sellers hire agents to list their home for sale. In the contract, the Sellers agree to pay their agent a commission. Since it is unlikely that the Seller's listing agent will actually find a buyer for the home, the Sellers will agree for part of the commissions to be shared with the agent bringing the buyer, the Buyer's Agent.
The total commission is usually split between the Seller's listing agent and the buyer's agent. If a buyer does not have an agent and buys the home, the Seller's listing agent will keep all commissions.
On new construction homes, Builder's will hire on-site agents, pay them a commission, and agree for their on-site agent to share the commission with the buyer's agent.
"Commission Rebates" are a share of commissions
It costs home buyers absolutely nothing to work with Brenda Meshaw as their buyer's agent and they get 1/2 her commissions at closing!