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Indiana Home for Sale, Rebate Realtor, Buy a House in Carmel, Fishers, Geist, Indianapolis, Noblesville, Westfield: Call 317-446-1605, Central Indiana Realtor/Real Estate Agent Jim Cadwalader
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Call Realtor Jim Cadawaler at (317) 446-1605 today.
Call Realtor®
Jim Cadwalader
(317) 446-1605


1% of Purchase Price Cash Rebate, Buy a Home, Commission Paid by Seller, Fishers, Carmel, Noblesville, Geist,  Indianapolis, Indiana

Real Estate Commission Rebate
Home > Real Estate Commission Rebate

Yes I will Rebate to the Buyer a portion of the commission that I receive when they use me as their Exclusive Buyers Agent. I will rebate (refund/give back) to the Buyer 1 % of the Purchase Price of the home. For example:

  • $150,000.00 Purchase Price = $1,500.00 Rebate
  • $200,000.00 Purchase Price = $2,000.00 Rebate
  • $400,000.00 Purchase Price = $4,000.00 Rebate

I am able to offer this rebate because I do not have the high overhead seen in other real estate offices, like expensive office space, local and national advertising, franchising fees, and costly management overhead along with many other expenses. HowToBuyAHome.com Inc. is structured to avoid these extraneous expenses, and I pass the savings on to my clients.

As the Residential Real Estate market continues to soften it has become more common for brokers to rebate or reduce brokerage commissions. All Indiana Brokers, Agent/Realtors At their option can reduce there commissions and return a portion of the money they earned to the Buyer in the form of a rebate.

You may hear that Rebating (giving back a portion of the fee that I am paid to you the Buyer) is not legal in the state of Indiana and that is just simply not true.

The United States Department of Justice Antitrust Division thinks that this is a great idea that makes home buying less expensive. Rebates can save consumers several thousand dollars in a single transaction. http://www.justice.gov/atr/public/real_estate/rebates.htm

The Indiana Real Estate Commission says that it is LEGAL!

Title 876 INDIANA REAL ESTATE COMMISSION
ARTICLE 1. >GENERAL PROVISIONS
876-IAC-1-1-40 Incompetent practices

2. Accepting or offering any inducement or rebate for the purposes of obtaining a listing or inducing a sale, where full disclosure in writing has not been given to all parties of the transaction at the time of the offer or acceptance.

When I send over our initial offer to purchase, a form is attached that discloses to all parties involved in the transaction that I intend to rebate a portion of my commission to the Buyer.

Go to www.PLA.IN.Gov, enter Real Estate Commission in the search box (click) then choose PLA:Indiana Real Estate Commission, Scroll down to Licensure Law and Administrative Rules (click) then scroll down to Indiana Real Estate Commission Laws and Regulations (click) and go to page 58 and find 876 IAC 1-1-40 #2

The Department of Housing and Urban Development (HUD) says that it is ok!
For more information, download the HUD Real Estate Settlement Procedures Act (RESPA) Rule FAQs. Scroll down to New RESPA Rule FAQ's Updated 4/2/2010 and click, go to the bottom of page 47 item #4 (and the top of page 48.)

As this Q & A explains:

"Q: May a real estate agent rebate a portion of the agent's commission to the Buyer? If so, how should the rebate be listed on the HUD 1?

A: Yes, real estate agents may rebate a portion of the agent's commission to the borrower in a real estate transaction. The rebate must be listed as a credit on page 1 of the HUD 1 in Lines 204-209 and the name of the party giving the credit must be identified. Real estate agent or broker commission rebates to borrowers do not violate Section 8 of RESPA as long as no part of the commission rebate is tied to a referral of business.

HUD does say that the rebate can only be used to pay closing costs and pre-paid items Usual and customary closing cost are about $2,000.00 to $2,500.00, if points are paid the closing cost can be much higher. Pre-paid items include:

  • Funding your escrow account
  • First year home owner's insurance premium
  • Interim interest
As you can see Closing Costs and Pre-Paid items can total anywhere from $3,000 to $10,000 or more. If the entire amount of your rebate can not be spent on closing costs and pre-paids there are other legal and acceptable ways to get the rest of your money to you that I will be happy to discuss with you.

If the rebate money is used to pay closing costs and pre-paid items that you would normally pay out of your pocket at the closing then that money stays in your pocket and you can spend it on something else like a new washer, dryer and refrigerator or furniture or whatever else you will need around your new home.

And the IRS says that it is NOT Taxable Income!
Download the IRS Ruling PDF file  or search Google for IRS 200721013
The ruling holds that a rebate is not includable in a customer's (Buyer's) gross income; rather, it represents an adjustment to the purchase price of the home.

Now comes the challenging part. FHA and VA lenders sometimes say NO, you are not allowed to get a rebate; some conventional lender's and Title Companies will also say NO. You will have to have them explain why since the Department of Justice, The Indiana Real Estate Commission, The Department of Housing and Urban Development and the I.R.S. don't seem to have a problem with me returning to you a portion of the commission.

I have identified large, well known and honest lender's out there that are more than willing to work with you and help you get your rebate. And as I have stated before there are other legal and acceptable ways to get your money to you. Obviously we need to shop hard for your lender in advance and make sure that they know about the rebate from the very beginning. A few of these Lender's are.

  • First Indianapolis Mortgage, Call Jason Hartmann, Office # 317-815-3866
  • Indy Mortgage, Call Ken Blaudow, Office # 317-570-6300 ext. 208
  • Primary Residential Mortgage, Call Jeff Day, Office # 317-238-3972 ext. 169

Of course if you are a cash Buyer there is no problem because there is no lender.

Click below for answers to questions we get asked most frequently about the Cash Rebate:

  1. How much does your service cost the Buyer?
  2. Why should I use you as my agent??
  3. So what's the catch?
  4. Is there a home purchase price limit on which you will pay a rebate?
  5. How does HowToBuyaHome.com Inc. get paid?
  6. Can I get the Buyer's rebate If I buy a brand new home, even one built from the ground up?
  7. Is the Buyer's rebate taxable income?
  8. What are the Rebate Program Terms & Conditions?

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Q#1: How Much Does Your Service Cost The Buyer?

A: My fees are paid by the Seller - - the Buyer pays nothing for my services.

Q #2: Why Should I Use You As My Agent?

A: As a realtor in the Fishers, Carmel, Noblesville and Geist areas for more than 16 years and having helped more that 400 families with their real estate needs, I feel that I can safely say that "I Know the Market".

  • We will sit down together and spend the time necessary to give you a clear understanding of how the home buying process works.
  • I will help assess your buying needs.
  • I will help you find and negotiate with a mortgage lender, and will make every effort to get you the best possible financing.
  • Together we will search for and find the "Home of Your Dreams."
  • I will help you negotiate the very best price and terms available.
  • I will handle all contracts and paperwork personally.
  • I will help you arrange your Home Inspection and I will personally attend the inspection with you and help you negotiate for the repair of any defective items identified during the inspection.
  • I will arrange and assist with all steps necessary for a successful closing.

Q #3: I've Always Heard That If Something Sounds To Good To Be True, It Probably Is. So What's The Catch?

A: When you buy a home using Jim Cadwalader with HowToBuyaHome.com Inc. as your agent, THERE IS NO CATCH. You get full service; you pay no fees, and better still, I PAY YOU!

Q #4: Is There A Home Purchase Price Limit On Which You Will Pay A Rebate To The Buyer?

A: Absolutely NOT!

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Q #5: How Does HowToBuyaHome.com Inc. Get Paid?

A: The Seller pays us for finding a Buyer for the property. Our payment is in the form of a commission based on the final sales price of the property. It is the individual real estate agency's choice whether to keep the entire commission for themselves or share it with their Clients. And it's your choice who you want to represent you.

Q #6: Can I Get The Buyer's Rebate If I Buy A Brand New Home, Even One Built From The Ground Up?

A: The answer is yes, but please be sure to have Jim Cadwalader accompany you on your first visit to the model home so that Jim can register as your Realtor.

Q #7: Is The Buyer's Rebate Taxable Income?

A: No. The rebate will not be taxable income -- the rebate is simply a reduction to the cost basis in the property you buy. There is no form-1099 because the rebate is not income -- it's the same as a rebate when you buy a car, or a cell phone, or a rebate you receive back on your credit card purchases.

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Q #8: Cash Back Rebate Program Terms & Conditions

A: Earn a rebate of the Buyer's Agent Commission when you register and comply with the following Terms and Conditions of the Cash Back Rebate Program.

  • If you currently have an agreement in writing with another Realtor to represent you as a Buyer's Agent, please disregard this program. It is not our intention to interfere with that relationship.
  • The rebate will be 1% of the purchase price.
  • The Rebate is available only to Buyers who close and have final settlement with Jim Cadwalader of HowToBuyaHome.com Inc. acting as their sole and exclusive Buyer's Agent in the purchase of real estate.
  • The Cash Back Rebate Program Terms and Conditions must be completed, signed and in the possession of HowToBuyaHome.com Inc. before any rebate will be issued.
  • In the event that a referral fee or commission must be paid to any third party on the sale of the property thus reducing the amount of commission received by HowToBuyaHome.com Inc., then the rebate to Buyer will be reduced by the amount of the referral fee or the commission paid to said third party.
  • The Cash Back Rebate will be paid only to the party or parties named as the "Buyer(s)" or "Borrower(s)" on the HUD-1 Closing statement and cannot be disbursed to a third party.
  • Buyer acknowledges that Buyer's cost basis in the real estate shall be lowered by the amount of the rebate. HOWTOBUYAHOME.COM Inc. makes no further representation regarding the tax treatment of the rebate. No taxes will be withheld from payment. Please consult your qualified tax advisor for more information.
  • It is the Buyer's responsibility to disclose the cash rebate to their mortgage company representative at the earliest possible date. Incentives may not be permitted in connection with certain loan programs for the Buyer. Please consult your lender regarding whether or not you can collect the incentive in connection with your loan. HOWTOBUYAHOME.COM Inc. reserves the right to pay the rebate to home Buyer in one of the following forms: 1) paying closing costs and/or pre-paid items on the HUD-1 Settlement Statement, 2) in the form of a discount on the purchase price, or 3) in any other form as determined in HOWTOBUYAHOME.COM Inc.'s sole discretion based on the needs or requirements specific to the transaction.
  • The Cash Back Rebate Program is subject to conditions, limitations, exclusions, modifications, and/or discontinuation without notice.

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