A new home rebate is usually a percentage of the sales price that can be used for closing costs or received as a check after settlement.

We provide commission rebates as a credit to buyers at closing, which reduces costs like discount points, prepaid taxes, insurance, HOA and lender fees. This credit lowers the cash you need to pay at closing.

TRID/RESPA rules require all rebates to be paid at closing. According to the Texas Real Estate Commission: "Rebates must appear on the closing disclosure and any cash rebate to a buyer needs the lender's consent. License holders cannot pay rebates outside the transaction."   

Within the Lender's limitations. 

If the Buyer has the ability to pay all closing costs out-of-pocket then it is much  easier and simpler to receive the whole cash Rebate on the day of closing. But if the  contribution is really needed to fulfill the Buyer's ability to close the transaction then  everyone fully cooperates to get the deal done.

The Builder (Seller) pays us to bring them a Buyer for the property. Our payment is in the form of a commission (typically 3% of the base price of the property).  

Our services are free – there is no charge to you. We are paid by the Builder (Seller).    

Yes, the pricing and incentives are the same whether you use a Realtor or not. This is another misconception people have about rebates. The builder must offer someone with an agent the same price they would offer someone without an agent. Otherwise, it would be discriminatory. Builders allocate 3% to pay a Realtor on every home they build. This comes from their marketing budget. Therefore, if a buyer is not represented by an agent, the extra 3% merely stays in their pocket. Wouldn’t you rather it be given back to you?

Rebatefornewhome does not issue 1099s to clients. While I cannot provide tax advice, realtor rebates at closing typically adjust the buyer's cost basis, similar to seller contributions. Cost basis is relevant for capital gains tax when selling the property; current law excludes up to $500k for couples ($250k for singles) on a primary residence.

We do not issue 1099 tax forms to our customers due to the IRS ruling # 200721013 that “a payment or credit at closing represents an adjustment to the purchase price of the home and generally is not included in a purchaser’s gross income. Nor does the taxpayer have an obligation to report for those amounts under any other section of the Code.”  

Absolutely, but to ensure you are eligible for our rebate, you need to contact me first. Many communities and builders require us to accompany you in person on your first visit or at contract signing.  If you do visit new home communities without us, be sure to let the Builder know you are working with a REALTOR® and write my contact information on the Builder’s registration form. Jose Handal 832.224.3333

Many clients and real estate professionals end up wasting each other’s time and resources, forcing serious buyers to pay higher fees to offset inefficient industry practices like large offices and excessive overhead.

Rebatefornewhome partners with clients to cut out this waste and share the benefits. We keep our operation thin, while our buyer clients contribute by researching the market and being easy to work with.

Our program is designed for well-prepared buyers who are proactive, require minimal assistance, and are ready to take charge of their own research. You’ll be responsible for exploring communities and finding the home that best fits your needs. Once you’ve found the right home, I’ll step in to handle the negotiations and ensure all documents are signed and the home is placed under contract.

No! Only well-prepared, decisive home buyers who value everyone's time qualify for the rebate program; those who are indecisive or unprepared do not.      

Rebates are applied at closing and must appear on the closing statement. For mortgage buyers, lender approval is required. The 2% assume a 3% commission. Purchases under $300k have minimum broker commissions of $1,500 for new construction. The 2% new home rebate applies only to model homes sold by builder representatives with minimal broker assistance; boutique builders using third-party agents are treated as resales. Rebates may be reduced for distressed or corporate listings, or when clients need multiple showings/offers. New home rebates require builder approval. Contact us for full terms.  

We may not be right for everyone, but informed buyers should know: you’ll pay the same price for your new home with or without a Realtor. Model sales agents represent the builder, while a Realtor represents you. Choosing to buy without an agent means losing thousands of dollars at settlement and money the builder will keep in there pocket.

Yes, you can feel comfortable that you will receive the rebate from me. Before you sign a contract with a builder, you and I will enter into a Buyer’s Representation Agreement, which spells out the terms of the rebate. This is a binding contract and holds me responsible to provide you with the rebate, as promised. This is absolutely legal in the State of Texas.

If you have an existing Broker-Buyer agreement with another agent, we cannot represent you until it is formally cancelled and you provide written proof. Likewise, if you registered with a Builder through another agent, changing agents may not be permitted.  

Yes!  You can confirm it here right on the Texas Real Estate Commission’s website. Most real estate companies do not offer rebates because it is not part of their business model.  Many real estate companies do not allow their agents to offer rebates because it is against their company policy.  There is a common misconception that rebates in general are not allowed or are illegal.  As you can imagine, many of our competitors would like you to believe that new home rebates are illegal, when in fact they are not. In 2007,  the Federal Trade Commission (FTC) and DOJ issued a joint report “Competition in the Real Estate Brokerage Industry,” praising new business models like ours that are finally starting to make the real estate industry more competitive!  

Based on available data, buyer closing costs for PITI mortgages on homes priced between $300,000 and $700,000 in Texas generally are around 3%. This percentage is higher than the 2% New Home Rebate, so exceeding rebate amounts is uncommon. However, this may become a consideration if a new construction builder provides a closing cost incentive alongside the realtor rebate. It is advisable to request an estimated cash-to-close worksheet from your lender that includes the anticipated rebate. If the expected rebate is higher than your closing costs, please inform us of the approximate excess, so that strategies can be discussed. 

Not always, but most Builders do not allow this because: for appraisal purposes they need to protect their price point in the community where they are selling. 

Builders allow and cooperate with the Realtor making a closing cost  contribution to the Buyer when it is Lender permitted and necessary to get the deal done.

No, The Buyer Representation Agreement that you sign is a private contract between Broker and Client. do not inform them unless necessary. If there is to  be a contribution of all or a portion of the Rebate to help with the Buyer's closing costs then all parties will become aware of the arrangement by way of disclosure from my behalf. The Builder salesperson may even ask you if your Agent is "going to make a contribution?". Just respond no and do not disclose this info to the Salesperson.  Remember, the Salesperson is being paid to look after the best interests of their employer (the Builder) and get the best price for the property. Informing the Salesperson of the  Rebate may change your negotiating position with the Builder.  

A home sold by a builder is classified as a new home, whether it is constructed from the ground up, designated as a Quick Move-In Home, or identified as the Builder’s Model Home.  

We provide Texas’s top new home cash back rebate, fixed at a maximum of 2% and not open to negotiation.

No, however our minimum compensation is 1% of the sales price, or $3,000, whichever is greater.  

No. There is never a cost for buyer representation.  

On a typical transaction, we are paid a 3% commission and we give you a 2% rebate.  A $400,000 new home purchase would save you $8,000. ($400,000 x 2% = $8,000).

Most of our clients elect to use the cash back at settlement towards closing costs, however we can also issue you a check 7-10 business days after settlement.