If you're buying a home in Texas, you may have heard that some agents return part of their commission to the buyer as a rebate — often applied as a credit at closing. Here's a plain-English look at how that works, whether it's allowed, and how to estimate what you might keep.

Is a buyer rebate legal in Texas?

Yes. Texas is one of the most rebate-friendly states in the country. A licensed real estate agent may share part of their commission with the buyer they represent. Payment of any rebate is contingent upon the consent of the party represented by the licensee in the transaction, and any credit applied at closing is subject to your lender's approval.

How a buyer rebate works

In a typical resale, the seller offers a commission to the agent who represents the buyer. With a traditional arrangement, the buyer's agent keeps that full amount. With a rebate model, the agent charges the buyer a defined fee and may return the difference. At EXL Realty Group, the model is straightforward:

  • You pay a flat 1% of the purchase price for full buyer representation, with a minimum of $3,000.
  • If the seller offers a buyer-agent commission above that fee, the difference may come back to you as an estimated closing credit.
  • If the seller offers less than the fee, you'd cover the difference — disclosed upfront before you write an offer, so there are no surprises.

How much could you keep?

A quick example, assuming a 3% seller-offered buyer-agent commission:

  • On a $400,000 home: ~$12,000 offered − $4,000 fee ≈ $8,000 estimated credit.
  • On a $600,000 home: ~$18,000 offered − $6,000 fee ≈ $12,000 estimated credit.

You can model your own number with the savings calculator on our homepage. Actual amounts vary by transaction and the commission the seller actually offers.

What to watch for

  • Representation still matters. A lower fee shouldn't mean less service — make sure you're getting full representation, negotiation, and guidance.
  • Lender approval. Some loan programs cap how much credit can be applied to your closing costs. Your lender confirms what's allowed.
  • New construction qualifies too. The builder's on-site agent works for the builder — a buyer's agent represents you, and builder-offered commissions can work the same way.