Many home buyers are not only unfamiliar with the concept of real estate commission rebates in the DC Metro area, but remain unsure whether these home buyer rebates (sometimes called “credits” or “refunds” or “cash back”) are even legal in Northern Virginia, Maryland and Washington DC at all. I’ve run across the same questions time and time again from first time home buyers on this topic…Where does the money come from? How does a Realtor commission rebate work? Will a real estate agent refund effect the price I pay for the home?

Now for the answers -

1. YES! Real estate agent rebates are legal in Northern Virginia, Maryland and Washington DC.
2. The money comes from the seller’s agent or builder, who offers the buyer’s agent a predetermined commission amount (typically 3%), agreed upon with the seller at the time the property is listed. The buyer’s agent rebates a portion of their commission to their client (home buyer).
3. Home buyer rebates DO NOT effect the price of the home- since the amount of the commission offered to the buyer’s agent is predetermined prior to listing the home, it doesn’t effect the home price if you buy with or without an agent, the seller’s agent or builder simply pockets the entire commission (many times 6%). On top of that, the home buyer will not have a DC Metro area real estate agent’s representation looking out for their best interests!

Still don’t believe me?? Well, check it out for yourself, Home buyer rebates ARE legal in VA, MD & DC according to the DOJ. The U.S. Department of Justice (DOJ) recently launched a new website on competition in the real estate industry. The Antitrust Division of the DOJ promotes and protects the competitive process through the enforcement of antitrust laws. Simply put–they prohibit price-fixing. The site was created to educate consumers about the benefits that commission competition brings to the consumer of real estate services. The chart below from the DOJ website shows the median commission paid by consumers per home between 1998-2007.

Simply put, buyer agent rebates make buying a home more affordable… period. Most people generally think of a rebate as a cheap, minuscule amount or barely even worth the effort of mailing out. However, when talking about Realtor rebates in real estate, we’re talking thousands of dollars back to you, the home buyer. Especially since the average home in the Northern Virginia/DC Metro area is ballparking (apparently not a real word) around $500,000, a new home rebate at this price with HomeZill would equate to $10,000! Definitely NOT chump change…

I ran across an interesting piece on Cash Back Rebates to Home Buyers, posted by a real estate agent in Illinois. BTW- Illinois is among the nation’s 37 Realtor rebate friendly states.

Thinking about buying a home in the DC Metro area soon? Call 1-888-998-9455 to receive up to a 2% cash back Realtor rebate when buying any new home construction or resale home in Northern Virginia, Maryland or Washington DC. Whether you’re a first time home buyer or seasoned real estate investor, you deserve a rebate for doing your share of the leg-work! To learn more about our 2% HomeZill.com Realtor rebate program, click here.

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