How do commission rebates work?

To understand how a commission rebate works, you need to first understand how commissions work in real estate. Typically, a listing agent charges between 5-6% (the national average is around 5.2%) and they split that commission with the agent represents the buyer.

For a commission rebate, the agent who is representing the buyer shares a portion of the commission they receive from the listing agent with their client. This takes the form of a commission rebate. You can see this illustrated with the diagram below.

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