The Cash Back Homebuyer Blog for Bluffton, Hilton Head & Beaufort, SC

 If buyer rebates are legal and can save buyers thousands of dollars, a common question is: Why doesn’t every real estate agent offer them? The answer comes down to how traditional real estate brokerages are structured—and why a new, more efficient model is gaining popularity in markets like Bluffton, Hilton Head Island, and throughout South Carolina. First, How Buyer Agent Commissions Work When a home is sold, the seller typically pays the buyer agent commission. In Bluffton, this commission is commonly between 2% and 3% of the purchase price. Example: Home purchase price: $700,000 Buyer agent commission: 2.5% = $17,500 This commission is paid to the buyer’s brokerage. Traditionally, the buyer receives none of it. Traditional Real Estate Model: Brokerage Keeps the Full Commission In the traditional model, the brokerage keeps 100% of the commission. Example: Commission received: $17,500 Buyer receives: $0 This has been the standard structure for decades. Buyer Rebate Model: Brokera...

  If you’ve discovered that you can receive thousands of dollars back when buying a home in Bluffton, your first question is probably: “What’s the catch?” It’s a fair question. After all, if most buyers can receive $5,000 to $12,000 back, why doesn’t every agent offer this? The truth is, there is no catch—but there are important facts every Bluffton home buyer should understand. First, the Most Important Fact: The Seller Pays the Commission When a home is sold in Bluffton, the seller typically pays the real estate commission. This commission is built into the transaction regardless of which agent you use. Example: Home purchase price: $700,000 Buyer agent commission: 2.5% = $17,500 This commission is paid by the seller. Not the buyer. Where the Buyer Rebate Comes From With a traditional agent, the brokerage keeps the full $17,500 commission. With a rebate brokerage, part of that commission is returned to you. Example: Commission: $17,500 Buyer rebate: $8,750 Brokerage keeps: $8,750...

Most home buyers in Bluffton don’t realize they can receive thousands of dollars back when purchasing a home. Through a buyer rebate, one recent Bluffton home buyer received $8,750 back at closing—simply by working with a rebate brokerage. Here is exactly how it worked. The Buyer’s Situation The buyer was relocating to Bluffton and searching for a primary residence in the $650,000 to $750,000 price range. Like most buyers, their goals were to: • Find the right home • Keep their monthly payment manageable • Reduce their upfront cash required at closing They were unaware they could receive a rebate. The Home They Purchased Purchase price: $700,000 Property type: Single-family home Location: Bluffton, South Carolina This price range is very common in Bluffton’s current market. The Commission Structure The seller offered a buyer agent commission of 2.5%. Buyer agent commission: 2.5% of $700,000 = $17,500 Traditionally, the buyer’s agent keeps this full amount. Instead, the buyer received a...