Rebates are not considered taxable income.  A recent IRS ruling which states that a rebate we provide you will not be considered income, but rather a lowering of the purchase price:

The IRS determined in Ltr. Rul. 200721013 that certain commissions received by real estate brokers that were passed along to their home-buying clients were neither reportable payments to the brokers nor gross income to the clients.

Source: RIA/WGL Journal of Taxation (preview) on Checkpoint

The seller always pays the commission on a home you buy. A real estate agent never charges you, the buyer, for their services. That’s why you pay the same price for a home whether or not you use a real estate agent: The seller usually has already agreed to pay the listing agent a fixed commission - say 6%. So whether you buy the house by yourself or through an agent, the listing agent gets a 6% commission. Therefore, in most cases you cannot approach the seller for a discount, since the seller is paying 6% no matter what - either 6% to the listing agent, or a split of 3% to the listing agent and 3% to your agent. (Remember, this is where we come in: we give you part of our 3% in the form of a rebate).

Our network of agents keep a smaller percentage of the commission than most agents do and they’re happy to do this. They feel that you deserve a rebate when you are actively involved in the search process. Today’s technology enables you to perform some of groundwork traditionally provided by an agent. This frees the agent’s time to focus on the part of the deal the agent does best: negotiating contracts & guiding you through to settlement.

According to Fannie Mae guidelines and federal laws, all credits must be given on the settlement statement (not after closing). Failure to disclose the payment to the buyer on the settlement statement can constitute a “false statement to a lender” (a federal crime), and also a violation of the License Law and Commission rules.  You can  read what a state real estate commission wrote about this federal statute. As long as the rebate is listed on the HUD-1, it is perfectly fine in the majority of states, and most lenders do allow the rebate on the HUD-1.  However, if your lender will not allow the rebate on the HUD-1, then the only way for you to get the credit would be to have the seller lower the sales price by the amount of the rebate.  It is the buyer’s responsibility to ensure they have selected a lender who will allow the rebate on the HUD-1 statement.

The HUD-1 is a standard form produced by the Housing and Urban Development Authority. The HUD-1 is often referred to as the closing statement because it must be used at all closings and details the monies owed by the buyer to be paid to the seller. Our network of agents provide your rebate directly on the HUD-1 (so long as your lender allows it - see the next question), meaning you can bring less cash to closing.

Your lender will give you a pre-qualification letter after s/he has done a brief analysis of your financial situation. This may or may not include checking your credit. However, the letter will usually say it’s contingent on various factors, such as the verification of what you’ve told them. A pre-approval letter is more thorough, and will include a credit check. This letter is more likely to say that you’re approved for a home as long as your financial situation doesn’t change (i.e., you don’t buy a car while you’re trying to buy a house, etc.) Some sellers or builders will require a pre-approval letter, and few won’t.

No. RebateReps.com is a real estate firm offering rebates to buyers. Our network of agents represent the buyer while at the same time offering a rebate. (This means you save money! A lot of money… $2,000 to $10,000.) As we like to say, “Don’t make a $10,000 mistake!’

An agent in our network will offer you a rebate based on the ratio of the seller’s commission. He or she will work the details out with you before you begin your search, and will put it in writing.

Yes! We have a trained staff whose job is to match you with one of our RebateReps agents in your area.

No! There is no cost to the buyer to have a RebateReps agent represent you when buying a home. You pay more when you don’t have an agent because you forfeit your rebate!

Here’s how it works:

New Homes:The builder is charges a price for a newly constructed home. If you make an offer with a real estate agent at your side, the builder will pay your agent a commission (part of which we would give back to you). However, if you buy that same home without an agent, the builder will still charge you same price but you will not be eligible for a rebate. By law, the builder can only pay a commission to a licensed realtor. But you don’t have to believe it from us - go ahead and call a few homebuilders and ask them if they’ll pay the commission directly to you.

Resale homes:A real estate agent charges the seller 6% of the price of the home to list it. If a buyer shows up with a Real estate agent, then both agents split that 6%. However, if you show up and buy with no Realtor, the listing agent just keeps the whole 6%. The listing agent won’t give you a discount. If you use us (or a Real estate agent we find you), however, our network of agents will give part of the 3% back to you.