Can I Get a Buyer Commission Rebate in Philadelphia?

Buying a home in Philadelphia is an exciting prospect. Whether you are buying your first place, upgrading to gain more bedrooms and storage space, or downsizing to have less to maintain - you are likely on the hunt for "the one" with maximum bang for the minimum buck!

Many homebuyers will look for ways to save faster for their down payment, benefit from a property tax abatement, or streamline their real estate closing costs. However, few buyers are aware of the huge potential savings from buyer commission rebates.

Fortunately, there’s a home buying platform that aims to empower homebuyers with significant savings. Prevu has officially launched its industry-leading commission rebate in Philadelphia.

What Are Buyer Commission Rebates in Philadelphia?

In a typical full service real estate purchase, the buyer and seller each come to the transaction with their own real estate brokers. The seller has agreed to pay their listing agent a commission, usually 6% of the sale price, which is then split evenly with the buyer’s agent so that each brokerage walks away with 3% of the final purchase price in real estate commissions.

A buyer’s agent commission rebate, sometimes referred to as a commission refund in Philadelphia, is when the buyer’s agent gives back a portion of their commission to their client, the homebuyer.

Are Buyer Commission Rebates Legal in Philadelphia?

Buyer commission rebates are legal in Philadelphia. In fact, the United States Department of Justice encouraged the real estate industry on the practice of rebating as it benefits consumers and helps make homes more affordable. Despite this, very few real estate brokerage firms offer rebates.

Rebates are legal in 40 states including Pennsylvania. The states that have not yet adopted the concept are Alaska, Oregon, Iowa, Kansas, Oklahoma, Missouri, Mississippi, Louisiana, Alabama, and Tennessee.  

Commission Rebate Philadelphia (Based on $750,000 home)

• Purchase Price: $750,000
• Seller’s Agent Commission (3% of Purchase Price): $22,500
• Buyer’s Agent Commission (3% of Purchase Price): $22,500
• Commission Rebate: $7,500

What Makes Prevu Different?

Prevu was founded with a specific mission: make the process of buying a home simpler and more affordable. To do this, co-founders Chase Marsh and Thomas Kutzman created a digital-first transaction model in which homebuyers could complete each step of the home search and purchase online.

"Philly homebuyers have been craving a better way to buy a home," notes Todd Hovanec, Prevu’s Director of Real Estate Services for Greater Philadelphia. "Thanks to the technology-driven, consumer experience, Prevu is able to offer the largest commission rebate in Philadelphia."

Homebuyers can create a Prevu account and set their preferences for their ideal property. Factors such as budget, neighborhood, and home features can all be personalized to deliver a targeted list of properties.

Buyers can browse properties on Prevu’s platform, request tours at the push of a button, submit offers seamlessly online, and manage all stages of the home search conveniently in one place. There are also regular email alerts when new homes are listed that meet a buyer’s wishlist, as well as open house schedules at the end of each week.

Understanding How Prevu’s Model Benefits You

In addition to Prevu’s robust technology platform that makes it easier to find and purchase a home, the company’s corporate structure sets it apart from traditional brokerages. Whereas most real estate agents earn their income through commissions, Prevu’s agents are salaried employees. This model benefits buyers in two ways:

First, by not having to chase down customers to earn a commission, Prevu agents can devote all of their time to finding the right homes for their buyers and closing deals. This creates a more tailored experience for each home buyer with better, more responsive customer service.

Second, thanks to the efficiencies created by the company’s seamless online experience, Prevu is able to give back a portion of those commissions to their customers. Prevu buyers typically receive up to 1% of the purchase price back as a buyer commission rebate (also known as Prevu’s Smart Buyer Rebate) after closing.

Many traditional brokerages who don’t offer rebates try to scare homebuyers that they will receive less service when receiving a rebate. This is simply not true. In fact, the combination of Prevu’s salaried-agent cost structure and more efficient technology allows a higher level of service - as noted in many Prevu buyer reviews.

Getting Started

When you’re ready to start your home buying journey, the first step is to create an account on Prevu. Narrow down your preferred neighborhoods, set your budget, select the number of bedrooms and bathrooms you’re looking for, and the property features you’re most interested in.

From there, you’ll have a curated list of properties to review. Request tours online for the homes you’d like to see, and submit your offer through the platform once you find the one that checks all your boxes. 

A Prevu agent will serve as a local expert to walk you through each step and negotiate on your behalf. Once the keys officially trade hands, the company will then cut you a check for your Smart Buyer commission rebate. It’s a new way to buy a home.

Looking to buy a home in Philadelphia? Browse listings and see how much you can potentially save on your purchase with Prevu.