A commission rebate (also called a buyer rebate or “cash back from your agent”) is when the buyer’s agent returns part of their commission to you at closing. In Arizona, this is typically applied as a credit on your settlement statement, helping reduce your closing costs or overall cash needed to close.
In most transactions, the seller (or builder) offers compensation to the buyer’s agent. A rebate simply means the agent agrees to return a portion of their earned commission back to the buyer.
The rebate usually appears on the settlement statement as either:
This credit is applied to closing costs, prepaid items, or rate buydown expenses, depending on the structure of the transaction.
In many cases, yes. If you are financing your purchase, the rebate typically offsets closing costs or prepaid items. Loan programs may limit how credits are applied. For cash purchases, the structure is generally more flexible but must still be properly documented through escrow.
Actual rebate amounts depend on purchase price, commission structure, and the minimum buyer broker compensation agreed upon in the transaction.
Yes. Commission rebates are generally allowed in Arizona when properly disclosed. They must be reflected in escrow documentation and comply with lender guidelines.
For a deeper explanation, read: Is a Realtor Rebate Legal in Arizona?
Do I receive cash in hand?
Typically, rebates are applied as a credit at closing rather than issued as cash beforehand.
Can rebates be used to buy down my interest rate?
Often yes, depending on loan program rules and lender approval.
Are rebates available on new construction?
Sometimes. Builder contracts and commission structures determine eligibility.
Tell us your target purchase price and whether you're financing or paying cash. We’ll outline a realistic rebate range and how it would appear on your closing statement.
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