home buyer rebate program

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The exact amount of the rebate varies and is negotiated between the buyer and the agent.  Rebates can be a closing credit, which reduces the total amount of money required by the buyer.  Closing Credits are subject to a number of terms and/or restrictions and are subject to a lender approval.   Please Review The Mortgage Research Center For More Information. 

Dalton Realtors Buyer Credits Program

Cash Rebates are also a percentage of the agent's concession.  The following is an example of how Dalton Real Estate Offers Buyer Rebates. 

Percentage of the Agent's Concession

The Buyer Rebate is up to 90% of the Agent's Concession on a purchase price of a home of 900,000.  Agent's typically make 2.5% of the Sale Price of the Home.  900,000 x .25 = $22,500.   Dalton Real Estate provides the buyer 90% of that Concession on this sample sale which is $20,250.

As per the California Legislature Information, a refund of a portion of an agent's conession to the buyer in a real estate transaction does not violate Business and Profession Code 10137 and is legal. 

The buyer cannot use the rebate as part of the down payment. Lenders typically require down payments to come from the buyer’s own funds or as a gift from a family member, not from transaction-based rebates. However, a rebate can often be applied to closing costs or might be allowed to buy down the interest rate, indirectly reducing the amount of cash a buyer needs at closing. It’s essential to discuss this with your lender early in the homebuying process to understand what’s possible and ensure compliance with lending guidelines.

 If the rebate is applied to closing costs or the purchase price, it may not be considered taxable income by the IRS. However, if the rebate is given to the buyer in cash after closing, it could be viewed differently. It’s crucial to consult with a tax professional to understand the tax obligations associated with your home buyer rebate, ensuring compliance with current tax laws and regulations.