Updated November 2026. Our “best-kept secrets for buying a home” post now leads with the one buyers ask about most: cash back from the agent’s commission. State rules from the Alabama and Texas real estate commissions and Fannie Mae’s credit limits read November 1, 2026.
A real estate buyer rebate is part of your agent’s commission given back to you, usually as a credit at closing. It’s allowed in many states but not all. Alabama’s Real Estate Commission says licensees can’t give a rebate, while Texas allows one if the buyer’s lender agrees (both read November 2026). On a $400,000 home, every 1% back is $4,000.
Buying a home listed by an agent? Beycome’s buyer program has no upfront fee and credits part of the buyer-agent commission to you at closing, where allowed by state law.
Jump to: 💲 How it works · ⚖️ Where it’s allowed · 🏦 Lender limits · 🔑 Beycome’s program · 🔎 More buyer secrets · ❓ FAQ
Key takeaways
- A rebate only exists if your agent is paid. No commission means nothing to share.
- State law decides if it’s allowed. Alabama bars licensee rebates; Texas allows them with lender consent.
- Your lender counts the agent’s credit as an interested-party contribution, with a cap.
- Most credits can pay closing costs, not your down payment.
How does a real estate buyer rebate work?
Follow the money. The seller, or you, agrees to pay your agent’s brokerage. At closing, the title or escrow company pays that fee out of the funds. If your agent has agreed to a rebate, part of that fee shows up as a credit on your side of the Closing Disclosure. It lowers the cash you bring.
Example: the seller offers 2.5% to the buyer’s agent on a $400,000 home, so $10,000. Your agent keeps $6,000 and credits you $4,000. That’s an example only. Commissions are not set by law or NAR rules, they’re negotiable, sellers choose whether to offer buyer-agent pay at all, and since August 17, 2024 those offers can’t be shown on the MLS.
That last point changed rebates. Before the settlement, the offer sat on the MLS and everyone knew the number. Now you sign a written agreement with your agent before touring, and it states the agent’s pay. Any rebate should be in writing too, in that agreement or a separate one. NAR, settlement FAQs walks through the new rules. For how the fee itself works, see what a buyer’s agent commission is.
Are buyer rebates legal in every state?
No. Most states allow them, some restrict them, and rules change, so check your own state before you count on cash back. Two examples from the states where Beycome is licensed:
| State | What the regulator says | What it means for you |
|---|---|---|
| Texas | TREC says a license holder may rebate part of a commission to a buyer, but the rebate may be restricted by the buyer’s lender | Allowed; tell your lender early and get its consent |
| Alabama | The commission’s general counsel writes that state law doesn’t allow a licensee to give or receive a rebate, disclosed or not | No cash rebate; some disclosed incentives are handled differently, so ask before you sign |
| Other states | Rules vary | Check your state real estate commission, or ask the agent to put the rebate terms in writing |
Alabama is a good warning about wording. Its commission says licensees may give some incentives, like gifts, to win business, and a rebate is “typically given after or outside closing.” Same dollars, different rules. If you buy there, let the brokerage and a real estate attorney tell you what’s allowed.
Taxes are a separate question. We don’t give tax advice, so ask a tax professional how a closing credit affects you.
How do lenders treat a buyer rebate?
As money from an interested party, with a ceiling. Fannie Mae’s Selling Guide names the real estate agent or broker as an interested party. Credits from your agent count toward the same limit as seller credits.
| Your down payment (conventional, Fannie Mae) | Max interested-party credit |
|---|---|
| Under 10% (LTV above 90%) | 3% of the lower of price or appraised value |
| 10% to 25% | 6% |
| More than 25% | 9% |
| Investment property, any down payment | 2% |
Two more rules from the same guide. Financing credits can’t be more than your total closing costs. And a rebate that isn’t credited toward the transaction is treated as a sales concession, which the lender subtracts from the price. In plain terms, run the rebate through closing, and expect it to cover costs, not your down payment. FHA has its own 6% cap; our page on FHA seller concessions compares it with VA and conventional loans.
If the seller already gives you a big credit, the rebate and the seller credit share one cap. Ask your loan officer to check both before you write the offer.
How does Beycome’s buyer program work?
You pay no upfront fee. When a seller offers buyer-agent pay, Beycome collects it, keeps 1% of the price (minimum $1,499) and credits the rest to you at closing, with lender approval. On a $400,000 home with 3% offered, you get $8,000 back. If the amount offered is below the minimum, you cover the gap at closing.
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On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →It’s open to every buyer on homes listed by other agents. The commission credit can’t apply where no buyer-agent commission is offered, like most FSBO homes, or on homes listed by Beycome sellers. State rules vary too, so the terms depend on where you buy. Start at Beycome’s buyer page to see how it works for your city.
Beycome works with local agents, title companies and lenders on the other side of these deals every day; 22,000+ have used it to sell or buy (Beycome internal data, October 2026). If you’re looking at a by-owner house instead, read who pays the buyer’s agent on a FSBO home.
What other secrets do experienced buyers know?
The rebate gets the headlines. These save money more often.
- Get two or three Loan Estimates on the same day and compare page 2, not just the rate. The CFPB’s What is a Loan Estimate? page shows what each line means.
- Read your buyer agreement before the first tour. Check the fee, the term and how you can end it.
- Compare the Closing Disclosure with your Loan Estimate. It arrives at least three business days before closing, per the CFPB’s Closing Disclosure guide.
- Call your title company on a known number before you wire money. Never trust wiring details sent by email alone.
- Check sold prices, not list prices. NAR put the September 2026 median at $417,500 in its NAR, existing-home sales, September 2026 report.
The CFPB’s Buying a house hub has checklists for every stage. For the full process, our smart buyer’s guide goes step by step, and what pre-approval means covers the first move. Selling too? Our sister post on best-kept secrets for selling your home covers that side. In Florida or Texas, Beycome Title can handle your closing, and it opens in Michigan, Ohio, Illinois and Indiana starting November 2, 2026.
Buyer rebate questions
What is a real estate buyer rebate?
Part of the buyer’s agent commission returned to the buyer, usually as a credit on the Closing Disclosure. It only works where state law and the buyer’s lender allow it.
Are real estate rebates legal?
In many states, yes. Texas allows them with lender consent. Alabama’s commission says licensees can’t give rebates. Check your state’s real estate commission.
Can I get money back when I buy a home?
Sometimes. If the seller offers buyer-agent pay and your agent agrees to share it, you can get a closing credit, within your state’s rules and your loan’s limits.
Can a buyer rebate pay my down payment?
Usually not. On Fannie Mae loans, credits from interested parties, agents included, can’t exceed your closing costs. Ask your lender how it treats yours.
Is a buyer rebate taxable?
Ask a tax professional. How a closing credit is treated depends on your situation, and we don’t give tax advice.
Do I have to sign an agreement with a buyer’s agent?
If your agent uses an MLS, yes, before touring a home since August 17, 2024. The agreement states the agent’s pay and that fees are negotiable.
Can I get a rebate on a FSBO home?
Rarely. A rebate needs a buyer-agent commission to share, and most FSBO sellers don’t offer one. Beycome’s buyer credit doesn’t apply to FSBO homes.
Commissions are not set by law or by NAR rules and are fully negotiable. Sellers choose whether to offer any compensation to a buyer’s agent, and how much; since August 17, 2024, those offers can’t be shown on the MLS. Percentages in this article are examples only.
Buyer program: no upfront fee. Beycome keeps 1% of the price, minimum $1,499; the rest of the buyer-agent compensation the seller offers is credited at closing, subject to lender approval. If the offer is below the minimum, the buyer covers the gap. Not available on FSBO homes or homes listed by Beycome sellers. Rebate and incentive rules vary by state.
Beycome Title: Florida and Texas today; Michigan, Ohio, Illinois and Indiana starting November 2, 2026. General information, not legal or tax advice.
Sources
- Alabama Real Estate Commission, Briefly Legal: Gifts, Rebates and Kickbacks, read November 1, 2026.
- Texas Real Estate Commission, Can a license holder rebate a portion of his commission?, read November 1, 2026.
- Fannie Mae Selling Guide, Interested Party Contributions, read November 1, 2026.
- NAR, Settlement FAQs, read November 1, 2026.
- NAR, Existing-Home Sales, September 2026, read October 22, 2026.
- CFPB, What is a Loan Estimate?, read October 22, 2026.
- CFPB, What is a Closing Disclosure?, read October 22, 2026.
- CFPB, Buying a house, read October 22, 2026.
- Beycome, buyer program, November 2026.
Disclosure & Disclaimer
Beycome provides real estate services through affiliated licensed brokerages and has a commercial interest in the services and business models discussed on this blog. Content reflects Beycome’s perspective and may promote our services; it should not be treated as independent or neutral reporting.
Articles are provided for general informational and educational purposes only, not as financial, tax, legal, or investment advice or a recommendation for your particular situation. Reading this blog does not create a brokerage, advisory, or other professional relationship.
Information, opinions, pricing, service descriptions, and comparisons reflect the sources and information available when an article was published or last updated and may change. Although we aim for accuracy, we do not guarantee that all content is complete, current, or applicable to your circumstances. Laws, market conditions, and service availability vary by location. Examples and estimated savings are illustrative, depend on stated assumptions, and do not guarantee individual results.
Verify relevant information directly and consult qualified professionals before making decisions. Beycome services are subject to applicable agreements, eligibility requirements, and state-specific terms.
