Back to Blog

Buyer Rebate Questions: Straight Answers for Arizona Home Buyers

Short answers to the questions Arizona buyers ask most about commission rebates, with a link to the full answer for each. With RebateAZ, your agent keeps 1.5% of the price (minimum $4,500), and the rest of the commission the seller or builder offers comes back to you at closing, up to 2% of the price.

Getting started

• How does a buyer rebate work in Arizona?
  A licensed agent represents you, and part of the commission the seller or builder pays comes back to you at closing.
• Is a realtor rebate legal in Arizona?
  Yes, when it is disclosed, written into your buyer agreement and paid through escrow.
• How and when is the rebate paid?
  As a credit through escrow on the day you close, shown on your Closing Disclosure.
• Is a realtor rebate taxable?
  Generally no. The IRS has treated it as a reduction of the purchase price, which lowers your cost basis.

Your situation

• I found a home on Zillow or Redfin. Can I still get a rebate?
  Yes. You choose your agent. Text us the address before you click Request a Tour.
• I am already working with an agent. Can I switch?
  Usually, once you check your buyer agreement for its term, cancellation terms and protection clause.
• My lender referred me. Can the agent still give me a credit?
  Yes. RESPA bans the agent and lender paying each other for referrals, not a disclosed credit to you.
• What if the seller won't pay my agent?
  Ask for it in your offer, ask for a lower price instead, or pay the fee yourself. Your agent tells you before you tour.

New construction

• I already visited a model home alone. Now what?
  Ask the builder its policy before you sign, and register before visiting any other community.
• Can I get a rebate on a new build?
  Yes, if your agent is registered on your first visit. Builders usually pay a full commission.

Money and loans

• Can I use a rebate with FHA, VA or a conventional loan?
  Yes, for closing costs, prepaids and points, within each loan's limit on credits. Not for the down payment.
• How much is the rebate on a $400,000 home?
  $6,000 when the seller offers your agent 3%.
• How much is the rebate on a $500,000 home?
  See the dollar amounts by commission offered.
• Rebate, flat-fee agent or lender credit: which is better?
  It depends on how much help you want and which lender you want to use. Side by side on a $550,000 home.

New-Home Communities

• Hawes Crossing, Mesa: new homes closed at a median of $569,990
• Avalon Crossing, Mesa: new homes closed at a median of $565,500
• Waterston Central, Gilbert: new homes closed at a median of $814,376
• Viviendo, Chandler: new homes closed at a median of $784,574
• Madera, Queen Creek: new homes closed at a median of $659,990
• Empire Pointe, Queen Creek: new homes closed at a median of $543,657

Frequently Asked Questions

What is a buyer commission rebate?

Part of the commission paid to your buyer's agent, credited back to you at closing. With RebateAZ, it is the commission offered to your agent minus 1.5% of the price (minimum $4,500), up to 2% of the price.

Who pays for a buyer rebate?

It comes out of the commission the seller or builder already offers your agent. It is not an extra cost to the seller.

Do I still get full service with a rebate?

Yes. With RebateAZ you get a licensed agent for showings, comps, your offer, inspections, negotiation and closing, with no per-showing or upfront fees.

Get Started

Tell us what you are looking for and we will text you shortly with a realistic rebate estimate and answers to your questions.