Back to Buyer Rebate Questions

How Do You Get a Buyer Rebate? When and How It Is Paid in Arizona

Short answer: a buyer rebate is paid as a credit through escrow on the day you close. It shows on your Closing Disclosure or settlement statement and lowers the cash you bring to closing. On a financed purchase it is not a check after closing, and it cannot be more than your closing costs.

The Four Steps

1. Buyer agreement. The rebate is written into your agreement with your agent. With RebateAZ: the commission offered to your agent minus 1.5% of the price (minimum $4,500), up to 2%.
2. Preapproval. Tell your lender about the rebate so it is planned into your loan's credit limits.
3. Purchase contract and escrow. Your agent makes sure the credit is in your contract and escrow instructions.
4. Closing. Escrow pays your agent's commission, and the rebate is credited to you on the same statement.

What the Credit Can Pay

• Lender fees, title and escrow fees
• Prepaid property taxes, homeowners insurance and interest
• Discount points to lower your rate, if your loan allows

It cannot pay your down payment on a financed purchase. Cash buyers can use it to reduce cash due at closing. Limits by loan: FHA, VA and conventional. Taxes: is a realtor rebate taxable?

Frequently Asked Questions

When do I get my buyer rebate?

At closing. It is credited to you on your Closing Disclosure or settlement statement the day the sale closes.

Can my agent pay the rebate by check after closing?

Not on a financed purchase. The credit must be disclosed to your lender and shown on your Closing Disclosure. Payments outside escrow can create problems with your loan.

What if my rebate is more than my closing costs?

On a financed purchase the extra is cut or used to lower the price the lender uses, so plan the offer around it. Using it for points is one option.

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