What Is a Buyer Rebate?
When you buy a home, there's usually a commission paid to the buyer's agent — historically around 2.5–3% of the purchase price. At a traditional brokerage, your agent keeps that entire amount.
A buyer rebate is when your brokerage shares a portion of that commission back with you. Instead of the brokerage keeping $15,000 on a $600,000 home, they keep a flat fee and give you the rest — often $10,000+ back at closing.
How ShopProp's Buyer Rebate Works
- You hire ShopProp as your buyer's agent. You get full representation — home search, tours, offer strategy, negotiation, and closing coordination — with a managing broker on your team.
- ShopProp charges a flat fee of $4,495. That's it. Regardless of whether your home costs $300,000 or $3,000,000.
- Any buyer-side commission above $4,495 is rebated to you. If the seller offers 2.5% buyer agent compensation on a $600,000 home ($15,000), ShopProp keeps $4,495 and rebates you $10,505.
- You receive the rebate at closing. It can be applied as a credit toward closing costs, or in many cases, received as cash back.
Rebate Amounts by Home Price
ShopProp Buyer Rebate (assuming 2.5% buyer commission)
| Home Price | Buyer Commission (2.5%) | ShopProp Fee | Your Rebate |
|---|---|---|---|
| $400,000 | $10,000 | $4,495 | $5,505 |
| $600,000 | $15,000 | $4,495 | $10,505 |
| $800,000 | $20,000 | $4,495 | $15,505 |
| $1,000,000 | $25,000 | $4,495 | $20,505 |
| $1,500,000 | $37,500 | $4,495 | $33,005 |
| $2,000,000 | $50,000 | $4,495 | $45,505 |
Think about it: On a $1 million home, traditional agents keep $25,000. ShopProp keeps $4,495 and gives you $20,505 back. Same representation. Same managing broker expertise. $20,505 more in your pocket.
Are Buyer Rebates Legal?
Yes. Buyer rebates are legal in the vast majority of U.S. states. The U.S. Department of Justice has actively encouraged rebates as a way to promote competition and lower costs for consumers.
A small number of states have restrictions (Alaska, Kansas, Mississippi, Missouri, Oklahoma, and Oregon have various limitations). In all other states, rebates are fully legal and increasingly common.
How Rebates Changed After the NAR Settlement
The 2024 NAR settlement fundamentally changed how buyer agent compensation works. Sellers are no longer required to offer buyer agent commissions through the MLS. This means:
- Buyers may need to negotiate their agent's compensation directly
- Buyer agent commissions are more transparent and negotiable
- Brokerages that offer rebates — like ShopProp — provide even more value
In this new landscape, a flat-fee brokerage with a buyer rebate is more valuable than ever. You know exactly what you're paying ($4,495), and you keep the rest.
What Can You Do With Your Rebate?
- Reduce closing costs — Apply the rebate directly to your closing costs, lowering your out-of-pocket expenses
- Increase your down payment — Put the money toward a larger down payment to reduce your monthly mortgage
- Home improvements — Use the cash back for renovations, furniture, or moving expenses
- Emergency fund — Start homeownership with extra financial security