Realtor Commission vs Flat Rate Rebate on New Home Purchase

Buying a New Construction Home in Texas and looking to get back cash back on realtor commission or flat rate rebate from your realtor?

Attention Buyers Seeking Realtor Commission Cash Back


Do you know what is more advantageous for you, the buyer?

  • A “percentage of the gross commission” ?
    ie: “84% of all cash commission paid by the Seller/Builder”
  • A “flat dollar amount”? ie: $7500 Rebate ?
  • A “fixed percentage rate of the purchase price”?
    ie: 2.5% of the purchase price?


Be aware of how your new home rebate is expressed on the TAR-1501 Buyer Representation Agreement.

When you are shopping for Austin real estate rebates, San Antonio Texas new home rebates or Dallas new home rebates from your prospective Texas Realtor, you should be aware of the fact that realtor commission amounts that Builders pay on New Home sales are not always the same. Up to now (15 years), only once have I seen them LESS than 3%. True, much of the time, the total amount of compensation is 3%. But yes, I frequently see them more than 3%, especially on Inventory Homes. Also after multiple sales with the same Builder in the same calendar year an Agent could be making 4 and 5%. Usually, the Bonus (BTSA) that a Builder pays to the selling agent will bring the total commission up to the 3.5% to 6% range. Realtor Commission on Buyers Representation Agreement

So… if your TAR-1501 Buyer Representation Agreement says the Buyer receives (a fixed percentage of the purchase price) as a commission rebate… say 2%… you might think you will be getting 66% of all of the commission being paid to your Agent… that sound right? Maybe not. What IF the commission is 4%…and you agreed to that 2%? If that is the case then you will receive 50% of all the commission. NOT 66%! So once you understand that 3% is not always the norm, then you will realize that you really may not be receiving that 66% of all of the realtor commission being paid by the Builder.

What is the the way to get the most realtor commission back  on your new home purchase?

Simple… make sure that you, the Buyer, are receiving a percentage “of the ALL of the commission paid by the Builder to the Agent/Broker”. That way you don’t have to worry about not being adequately paid for all the work that you, the Buyer, have done in finding the right school, community, builder, lot, floor plan and a hundred other items on the list of decisions involved in buying and building a new home. Nor do you have to worry about the potential of manipulation of compensation by your Agent.

So yes! How you say it could mean a lot of money. In other words…..84% of all cash
commission paid by the Seller… and there are NO sneaky transaction fees or any
other deductions charged to my Clients. NEITHER are there any “Lender limitations”, “exclusions”; or “restrictions” that could “prevent me from paying my Buyer ALL of their Rebate.”

So… at 16% of the compensation (for me AND my Broker); we are good! And please keep in mind… if your purchase is more than $475K then the Rebate escalates to 86% and even higher for larger purchases. The best Austin Texas Realtor Rebates 96% of ALL his commission ($2 MIL purchase price). View Stuart’s Rebate Schedule

Make sure realtor commission is clear and in writing

If you are shopping for the best Austin Realtor Rebates then you should be asking… “How much percentage of the gross commission are you going to give
me?”. Then, once you have made your deal, you need to make sure it is in writing!
Use a TAR-1501 Buyer Representation Agreement. This is a standard form that all
Realtors SHOULD be using. If they’re not then (in my book), sumthin’ ain’t right! Because remember… “When you’re talkin’ real estate in Texas… “it ain’t NUTHIN unless it’s in writin’!” And ya don’t have to be a lawyer to say that! – Stuart Scholer

Stuart Scholer is a Houston Realtor offering  84% commission rebate, and up to 96% of all his commission on new home purchases in Houston, Austin, San Antonio and Dallas, Texas

Read Stuart Scholer’s HAR’s Survey Results on

Get back the highest realtor commission with Stuart as your Buyer's Agent

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