Rebates on Real EstateWhy Real Estate Agents Don’t Tell You About Real Estate Rebates for Home Buyers?

When we are finally ready to make the move into our first (or next) home, nearly all of us will enlist a real estate agent to help us through the process. It is no wonder why: buying a home is a very complex process and a real estate agent can provide a valuable service to a Buyer looking for a home. In return, these buyer-agents are typically well-paid (at no cost to the buyer) through a seller-paid commission. However, most real estate agents will fail to reveal that, in the State of South Carolina, there is a lawful way for a Buyer to receive a significant portion of this commission.

Ever since I can remember, it has been widely misunderstood by the general public that absolutely no one but a licensed agent could receive any of the real estate commission. However, 40 states (including South Carolina) have now adopted policies that allow for home buyers to receive part of the seller-paid commission. In fact, the Department of Justice has been a vocal advocate of these rebate programs for years. Ordinarily, this commission is paid only to the real estate agents involved in the sale and, for obvious reasons, most real estate firms have not been keen to openly admit that there are now programs that allow buyers to both have access to full-service real estate agents and get paid a large rebate at closing.

While most real estate agents do not share this openly, they probably are not trying to hide this maliciously. The fact is, most agencies have their hands somewhat tied; if they offer and advertise it on the internet, then they force themselves to give the service to all their clients and severely cut their income.  This is where rebate programs like the popular provide an amazing service to the public. These programs allow home buyers to connect with local agents from professional real estate companies AND secure and guarantee buyers a large and legal cash-back payment at closing.

For those of us unfamiliar with these programs, let’s take a quick crash-course in how they work. Typically, a buyer will reach out to a program consultant such as Using their free services, buyers are able to get a quick estimate of the rebate they could receive at closing. Then, the rebate consultant firm will reach out to its affiliated real estate brokerage partners and put the buyer in touch with an expert agent who is currently able to accept the terms of the program and guarantee the rebate. The buyer then has the option of using this expert local agent to take them through the entire process of finding the perfect home, negotiating a deal and closing on the sale. Finally, at closing, the buyer will be given the cash rebate, which, in my home city of Charleston SC, usually averages a little over $2,000.

My favorite part: the IRS has ruled that this money is tax-exempt and therefore not to be treated as taxable income! So next time you buy a home in South Carolina, make sure take advantage of your Rebate!