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The 1/3rd Locality Rebate, saving Buyers $6000 on average.

$600,000 home x 3% Buyer's Agent Commission x 1/3rd to Buyer = $6000.00

Typical Commission Split

  • Listing Broker: 3%
  • Buyer's Agent: 3%

Locality Commission Split

  • Listing Broker: 3%
  • Locality Buyer's Agent: 2%
  • Locality Buyer: 1%

I’m often asked “what’s the catch? What service am I missing out on since I’m receiving this rebate?” The short answer is, there is no catch. We are full service, tech savvy Brokers, who believe in doing the right thing for our clients every step of the way. This includes saving you money. In fact, we think you’ll like working with a Locality Broker more than a traditional Broker. For us, it’s not about being the cheapest, it’s about being the best.

   – Trevor Smith, Owner & Founder, Locality

Frequently Asked Questions about the Rebate

What is a rebate? 

When a Seller lists their home they offer a commission to the Buyer’s Agent, usually 3% of the sales price. This is how Buyer’s Agents are paid. At Locality, we give 1/3rd of that commission to you, the Buyer. 

How much is the rebate?

The rebate is 1/3rd of the Buyer’s Agent Commission. Most of the time the Buyer’s Agent Commission is 3%, so the rebate is 1% of the purchase price of the home. The Buyer’s Agent Commission is set by the Seller and Listing Agent though, so you should check with your Locality Broker to find out what your rebate is for the home you’re purchasing.

What can I use the rebate for?

The rebate can be used toward closing costs, prepaids, loan discount points, or principal reduction (reducing the amount of your loan).

Why can’t I take the rebate as cash?

Locality is allowed to give you the rebate as cash after closing however most lenders do not allow this. In order to not put you in an awkward position where you’re taking a rebate your lender does not allow, we’ve limited our rebates to closing cost credits, etc.

What if my rebate exceeds the amount of my closing costs?

This is rare but can happen. If it does, we’ll work with your lender to make sure you can use as much of the rebate as possible. This can often be done by using the rebate to buy down your interest rate or reduce the principal of your loan.

Often if your rebate exceeds your closing costs it’s because you’re also receiving a closing cost credit from the Seller. Sometimes the simplest solution is to reduce this credit and simultaneously reduce the purchase price. That way you keep your entire rebate and don’t lose any money.

How does the rebate work if I’m purchasing the home with cash?

If you’re purchasing a home with cash, your rebate will first be used to pay your closing costs (usually escrow fees) and then be used to reduce the purchase price of the home.

What services am I missing out on to get this rebate?

None! Locality is a full service brokerage who doesn’t cut corners. We offer a rebate because real estate commissions are too expensive and it’s the right thing to do. Locality Brokers help you search for homes, show your properties, negotiate contracts, write offers, and close the sale just like traditional brokers. Our goal is just to do it a little better!

Do all your Brokers offer this rebate?

No. Only some Locality Brokers offer a Rebate. These Brokers have a “Offers 1/3rd Rebate Badge” on their profile page. A list of these Brokers can be found here

Are there any exceptions to the rebate?

Yes. If you were introduced to us through a third party website like Zillow or Trulia, we have to pay for this introduction. Because of that, we’re not able to offer a rebate to these Buyers. There are also some complicated and low cost transactions where the rebate is not feasible. For full details, please read “The Small Print” at the bottom of this page.

The Small Print: The Small Print: Certain Locality Brokers offer a 1/3rd Commission Rebate but some do not. Those who offer a commission rebate are listed on this page and have a Rebate Badge on their Locality profile page. Make sure to choose a Broker who offers the rebate. The 1% Commission Rebate is based upon a 3% Buyer’s Agent Commission. If the Buyer’s Agent Commission is less than 3% than the rebate will be 1/3rd of the commission. Unfortunately we’re unable to offer a rebate to Buyers who come to us through third party sites such as Zillow, Trulia, Estately, Realtor.com or other lead generation sites. This is because we have to pay these media sites for referrals, so please support your local small business and contact us directly. Due to their complexity, Locality is also unable to offer rebates on short sales, dual agency transactions, vacant land transactions, relocation transactions, REO’s (Bank Owned transactions), Manufactured Homes in Parks, Houseboats, and other unique transactions. In addition, homes with a listing price below $200,000 do not qualify for Locality’s rebate. Due to lending guidelines, Locality’s rebate may only be used toward lender approved closing costs, prepaids, loan discount points, or principal reductions. Rebates may not be taken after closing. Please consult your Locality Agent for the full details of your rebate. Your Buyer’s Agency Agreement will be the sole legal agreement between you and Locality regarding this rebate and your compensation to Locality. Please read it carefully and let us know if you have any questions prior to signing.