Realtors: Join the RebateReps Network

Close deals instead of being a taxi driver

RebateReps.com is a nationwide network of over 500 Realtors serving buyers who want to do the initial part of the home search process on their own.

This means you spend less time being a "taxi driver" and more time closing deals. In return, you reward these buyers by sharing part of your commission with them.

We may also send you non-rebate leads from time to time. These leads function the same as our rebate leads, but no rebate is due.

Membership in the RebateReps network is free; we charge a referral fee when you close a deal. We only make money when you make money, and that's the way we like it, because our interests are aligned. RebateReps was created, and is run, by a real estate company in Virginia, so we know what it's like to be in your shoes.

Realtors - you must meet the following requirements to be eligible to join the RebateReps Network:
  1. You have tools available to buyers which will allow them to perform the initial part of the search process on their own. Eligible tools include web-based property search capabilities (with addresses preferred), automatic email alerts to buyers when matching properties come on the market, and school, neighborhood, county or city research tools.

  2. You can invest in one or more GPS machine(s) to offer your RebateReps clients as a free loaner, so they can search for properties on their own, without needing to have you present. (Our suggestion is the Garmin StreetPilot I5, about $200 from Amazon.com.) A GPS machine is not required, but is highly recommended.

  3. You have gotten authorization from your broker to offer a 1% rebate to buyers, and a 25% referral fee to RebateReps.com of the remaining commission, before any internal splits you may have.
 
Inman News writes, "Virginia-based RebateReps.com helps agents who want to dabble in discounting without alienating full-commission customers, or work for a discount broker full time.

"Most Realtors don't want to advertise themselves as rebate agents because it cannibalizes their other business," said RebateReps founder and owner Daniel Rubén Odio-Páez.

RebateReps connects buyers to local agents who are willing to rebate part of their commission but don't necessarily want to advertise that fact, Odio said. RebateReps allows agents "to have their full-service brokerage and to service our (discount commission) leads."

RebateReps agents can give up part of their commissions and still give their clients their all in the negotiating and closing process because it's understood buyers will do their own house hunting, Odio said.

"The idea is buyers do a lot of their own research, and when they narrow it down to one or two houses and want to make an offer, the agent steps in as a full-service provider," Odio said.

RebateReps allows agents to decide whether they are "in the taxi business, driving buyers around for six months, or whether your time is better spent negotiating contracts, and shepherding a sale through to closing."

If this sounds good to you, and you think you qualify, please read our terms & conditions and then sign up below!

Terms & Conditions (Read These!)

There is no cost to join the RebateReps network and no monthly fees, but you do have to agree to the following:

  1. RebateReps will provide you access to its RebateReps Network, and refer to you appropriate buyers and sellers it identifies from time to time. You shall provide your best efforts to consummate real estate transactions for these clients.
  2. You shall give a rebate to any buyer or seller clients we send you, as permissible by state law (for seller clients the rebate shall be in the form of a discounted listing commission), and pay to RebateReps a referral fee, upon closing of a real estate transaction for any buyer or seller RebateReps refers to you. Assuming a 3% (or higher) commission on a transaction for buyer clients, the rebate shall be 1% of the home price. The rebate shall be paid to the client before any payment to your broker under any agreement you may have.
  3. We understand that for homes under $200,000 you may not be able to give the full rebate. In that case, you agree to work a rebate amount out with the client at the beginning of your interaction with them.
  4. If the commission is less than 3%, you shall rebate to the buyer or sellers we refer anything above 2%. (That is, on a 2.5% commission, you would give a 0.5% rebate.)
  5. You shall pay us a referral fee of 50% of the net commission on the first transaction for any buyer or seller clients that we send you. (Read below for details on how to easily lower this to 25%.)
  6. You also shall notify us upon contract signing, and in all cases within seven (7) days of the transaction's closing. After the first transaction, the client is yours to keep, free from referral fees. The net commission is the commission remaining after the rebate to the client, but before payment to your broker under any agreement you may have. Any bonuses or other payments specific to the transaction shall be included in the net commission.
  7. You shall notify us of a transaction's closing. If you notify us within two (2) days of the transaction's closing, we will lower the referral fee on that transaction from 50% to 25%. Please notify us promptly when a client we have sent you results in a transaction, so you can lower your referral fee to 25%! (We offer this because your prompt notification lowers our costs, as we don't have to get as many updates directly from clients.)
  8. All referral fees shall be paid to us before any payment to your broker under any agreement you may have. If any referral fees remain unpaid for more than 60 days following a closing, and legal action is necessary to collect them, you shall pay any attorney's fees and costs of collection.
  9. You have talked to your broker, provided your broker these terms and conditions, and your broker has authorized you to participate in this program.
  10. This agreement may be terminated in writing by either party, by e-mail or by First Class Mail to the other party's business address. This agreement shall apply to any real estate transactions placed under contract while it is in effect, even if the agreement is terminated.
  11. This agreement may be modified, and you will be notified in writing (via email to the e-mail address registered below) of any modifications. Upon receipt of the new terms and conditions, you agree to abide by them, unless you terminate the agreement in writing, as provided above. Notice by e-mail may be sent to us at info@RebateReps.com. Written notice may be sent by First Class Mail to 1267 N. Van Dorn St., Suite 100, Alexandria, VA 22304
I Agree with the terms and conditions. I understand that this is a binding contract and that I do not have to accept any of the leads given to me by RebateReps.com, but if I do, that I will be bound by these terms.

I also certify that I have gotten permission from my broker to participate in this program, and that my broker understands and agrees that all rebates and referral fees are paid before any internal splits to me.

Join the RebateReps Network:
I Agree with the terms and conditions



Testimonials from an Agent

"After working for one of the largest real estate brokerage in town, I left to create my own company. In searching for a progressive concept to distinguish myself, I discovered several articles about your owner, Daniel Odio. I essentially designed my business plan around the Rebate Reps 1% Cash Back concept, and I couldn't be more pleased with the results. When my clients get beyond their initial skepticism, they feel extremely lucky to have found me and are thrilled with our service and the cash they get back. Thanks for idea. I'm very interested in providing exceptional service to all of the referrals you send my way."

Best Regards,
Kevin Huntington
Metro Home Connection Realty
Minneapolis, MN

Answers to Common Questions

  1. Is this legal in Michigan? Is this legal in Ohio? Etc.

    Rebates are illegal in just a handful of states: Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, New Jersey, New York, Oklahoma and Oregon. They are legal everywhere else (and don't let any cranky Real Estate Agents tell you otherwise!)

  2. Do I have to hang my license with your firm to participate?

    No! Although we are part of a real estate company (based just outside Washington, DC), RebateReps is a network that you belong to simply by signing up above and committing to offer rebates. We will then start sending you leads which you service under your local brokerage.

  3. In regards to buyers, I would just provide home listings for them and they drive around and view properties themselves, and if they like one, then they call me and I show them the property and if they want it I make the offer. I am assuming that's how it works, correct?

    YES!!! You have the right idea! Let consumers do the initial footwork, and then join them later in the process so you can focus on what you do best - closing deals! Our local firm in Washington, DC, DROdio Real Estate, even offers buyers free loaner GPS machines so they can drive themselves around unassisted. Check it out! We also offer great self-service search tools like www.BirdsEyeSearch.com to our clients in the DC/VA/MD areas. You might also like this article and this radio interview to learn more about how we try to empower consumers.

  4. I am also a loan broker and would assist buyers with financing. I don't have to split that part of the transaction with Rebatereps.com, right?

    That's right, we only take a referral fee off the FIRST transaction you do on the real estate side. After the first transaction, the client is yours to keep.

  5. Do I have to promise the rebate in writing to my client?

    We sure hope you will! The way we do it in the DC/VA/MD area, where we're based, is by getting the client to sign a buyer representation agreement that has the rebate filled in. This makes it very easy to get the client to sign the buyer representation agreement! You can see our sample buyer rep form once you sign up with us.

  6. How do I actually give the rebate to my client?

    The Federal Housing Administration (FHA) has told us that any rebate given by any Realtor in the US must be disclosed on the HUD-1 closing settlement sheet. While we don't mandate or dictate how you give the rebate, we strongly suggest you follow their advice! Remember: the rebate is a private transaction between you & the buyer - so don't let the seller try to influence where or how you give your rebate! (New construction home builders can be especially difficult with this).

  7. Is the rebate considered taxable income to the buyer? Do I have to issue a 1099?

    The answer to this one isn't 100% clear because there have been no IRS cases to set a precedence. Our accountants do not believe the rebate is taxable income because it's not income at all - you are just returning to the buyer some of the money they are borrowing to buy the house. However, just in case the IRS ever decides that rebates are in fact taxable, we have our clients sign a form to protect us (and alert them). We strongly suggest you speak to a local tax attorney or CPA and draft a similar letter to protect yourself. 

  8. Can I advertise the program on my website? If so can I do the rebate program without giving a fee to your company?

    Yes, you can highlight your relationship with RebateReps on any marketing material, including your website. You can get a copy of our logo from us once you sign up with us. Any transaction that comes to you from our website will be due the referral fee stated in the agreement.

  9. I also have all kinds of people telling me you can't give money back to the buyers in Colorado. How does this work?

    Many real estate agents think rebates are illegal, mostly because they are threatened by the concept of rebates. The fact is that there are just a few states where rebates are not legal (listed above). Rebates are legal in every other state (including Colorado), and in fact the Department of Justice is taking legal action against the states that currently prohibit rebates, because the DOJ sees this as anti-competitive behavior.

  10. What would be the length / term of our agreement?

    The agreement is valid until either party terminates in writing.

  11. How many Realtors are in your system?

    We have over 500 agents in our network nationwide

  12. How many Realtors in your system are here, in MA?

    We currently have 9 agents in the state of MA. We average a handful of agents in each major city of a state, plus a few scattered in outlying areas of the state.

  13. How many leads could I expect?

    That depends entirely on the amount of press RebateReps is getting in your area. Usually you can expect a handful of leads per month, however sometimes a story will air on local TV and we'll get 100+ leads in a single week in an area.

  14. Are these exclusive leads given by zip code, or city/town, or in what way?

    Yes the leads are exclusive, meaning if we send you a lead, you're the only agent getting that lead. We do a radius search based on the buyer's zip code to find the closest agents to service that buyer.