Buying a New-Construction Home in Texas? Watch How the 2% Rebate Works

You get the same licensed representation, negotiation, and support through closing. The difference is what happens to the commission. A traditional agent keeps the entire commission the builder pays, and some also charge you a transaction fee of up to $500.

Jose gives you 2% of the sales price back as a credit at closing, and there is no transaction fee.

Builders pay a commission to the buyer's agent for bringing them a qualified buyer, typically 3% of the base price. Jose acts as your agent, claims that commission, and rebates 2% of the sales price back to you at closing.

Real results from the clients above: Destiny McKoy received $13,283 and Mr. and Mrs. Franks received $7,500.

Yes. You can confirm it on the Texas Real Estate Commission's website. There is a common misconception that rebates are not allowed, but they are perfectly legal in Texas.

Most real estate companies simply do not offer them because it is not part of their business model. In 2007 the Federal Trade Commission and the Department of Justice issued a joint report praising business models like ours for making the industry more competitive.

Yes. Before you sign a contract with a builder, you and Jose sign a Buyer's Representation Agreement that spells out the terms of your rebate in writing.

That is a binding contract. It legally holds Jose responsible for paying you the rebate as promised, and it is fully legal in the State of Texas.

You can, but you will almost certainly lose the money. Builders allocate roughly 3% to pay a buyer's agent on every home they build, and your price is the same whether or not you bring one. If you are unrepresented, that money simply stays in the builder's pocket instead of coming back to you.

Important: contact Jose before your first visit. Many builders require your agent to accompany you in person on the first visit or at contract signing in order for you to stay eligible. If you have already visited a community, tell the builder you are represented and write Jose Handal, 832.224.3333 on the builder's registration form.

Most clients apply it as a credit at closing, which lowers what you pay out of pocket for things like prepaid taxes, insurance, HOA fees, and lender charges. The rebate appears on your closing disclosure, as required by TRID and RESPA rules.

If you have enough to close without it, we can issue you a check 7 to 10 business days after settlement instead. If you are financing, the rebate is subject to your lender's approval.

We do not issue 1099 tax forms to our clients. Per IRS ruling #200721013, 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.

We cannot provide tax advice, so please confirm your specific situation with your tax professional.

Jose does. Once you find the home you want, send him the builder's contract. He reviews the terms, negotiates pricing and incentives, and makes sure everything is signed correctly before you commit.

Jose Handal is a licensed Texas agent, License #833351.

Jose stays with you personally through the rest of the process. Even new homes can have issues, so he recommends an inspection, helps you choose an inspector, and submits any repair requests on your behalf.

He also coordinates through financing, appraisal, and closing. Before closing you will see your rebate credit and your exact final costs, and on closing day you get your keys.

No. You are free to choose your own lender and your own inspector. If you would like recommendations, Jose can connect you with lenders he trusts, but the final choice is always yours.

No. The builder pays the commission at closing, so if the transaction does not close, you owe nothing. There is never a cost to you for buyer representation.