For most people, buying or selling a house is the largest financial transaction they’ll ever undertake. So it’s incredibly important to do it right!

The median home price in the U.S. is $200,000, which represents home values in Texas fairly well, as they hover around $207,301 and are predicted to increase by 1.7 percent within the next year.

When carrying out these large transactions, most consumers hire real estate broker services to ensure the transaction goes through smoothly and so they can get the best value for their money.

Some real estate brokers even offer rebates to encourage potential clients to use their services. However, a lot of people are misinformed or unaware of what rebates are, and what they entail.

Here are some common FAQs about rebates that will give you some valuable insights:

FAQ#1: Are Rebates Legal in the United States?

Rebates are legal in a majority of states across the United States, including Texas. However, there are some states with laws that forbid brokers from offering refunds.

The list of states where rebates are not legal includes: Alabama, Alaska, Iowa*, Kansas, Mississippi, Missouri, New Jersey**, Louisiana, Oklahoma, Oregon and Tennessee.

*Iowa allow rebates when only a single agent is involved in a transaction

**New Jersey allows rebates to homebuyers.

FAQ#2: How do rebates benefit a buyer or seller?

Rebates help both buyers and sellers save thousands of dollars in commission.

For instance, if a broker provides a refund that amounts to 50 percent of their commission, a buyer spending $250,000 on a home can save up to $2,500 in commission (assuming a 3% commission rate).

Rebates are typically given in cashback form, but some realtors may offer non-cash incentives, including gift certificates, free ancillary services like home inspections and/or moving services, or a waiver of closing costs.

No matter what form the rebate is offered in, it has a monetary benefit that drives down the total cost of buying or selling a property.

FAQ#3: Do real estate brokers support rebate?

When it comes to offering rebates, there are two schools of thought. Many real estate brokers argue that they lead to price competition and cut down their profitability.

While others believe that rebates lead to a competitive market, encouraging clients to use their services and giving them a competitive edge.

Despite profits cuts, successful brokers are happy to give some relief to clients in the form of rebates, as it allows them to increase the volume of their business.

At Builder Bucks, we offer Rebates On New Construction Homes Texas. Furthermore, we also provide Lender Incentives in Denton TX and home builder incentives to our clients. Reach out to us at 844-752-8257 to learn more about our services!