How Does a Buyer Rebate Work in Georgia?

July 17, 2026

A buyer rebate means your agent gives part of their commission back to you at closing. It's legal in Georgia. I credit my buyers up to 1% of the purchase price. On a $650,000 home in Alpharetta, that's up to $6,500 at the closing table, subject to lender approval.

That's the short answer. The rest of this post covers the questions buyers ask me once they hear it, including the limits most agents don't mention.

Is a buyer rebate legal in Georgia?

Yes. The Georgia Real Estate Commission allows it under Rule 520-1-.10, as long as the rebate is disclosed on the closing statement. It shows up on your Closing Disclosure, the official document that lists every dollar in your transaction, and your lender sees it and approves it. Georgia is an attorney-closing state, so the closing attorney applies the credit at the table along with everything else. Nothing about it is hidden.

Where does the money come from?

Since August 2024, buyers sign a written agreement with their agent before touring homes, and that agreement sets how the agent gets paid. In most north metro deals, the seller or builder still covers the buyer's agent fee as part of the contract. My rebate comes out of what I'm actually paid. That's why it says "up to" 1%. If a seller offers less, I tell you before we write the offer, not at closing.

Why doesn't every agent offer this?

Most agents carry costs I don't have: teams, assistants, big office splits, paid lead services. I've worked solo for 23 years. My overhead stays low, so I can hand part of my commission back to you.

The rebate doesn't change how I work. You deal with me from the first showing to the closing table. I read the seller's disclosure line by line, and I negotiate your contract. I recently walked a buyer through a closing that got pushed back twice through no fault of theirs, and each delay cost them a rate lock extension fee. A credit at closing exists for exactly that kind of hit.

What can the rebate pay for?

Your lender decides how the credit gets applied. It usually goes toward:

lender fees, title and attorney fees
prepaid taxes and homeowners insurance
buying down your interest rate, which lowers your payment for the life of the loan

Georgia buyers also pay an intangible tax on the mortgage, $1.50 for every $500 borrowed. On a $520,000 loan that's $1,560, and the rebate can cover it.

The limits nobody mentions

This part saves people headaches:

You can't take it as cash. The credit can only go toward real closing costs and prepaids. If your costs come in lower than the rebate, your lender may limit it.
Loans cap total credits. On a conventional loan for a primary home, credits from interested parties, which includes me, are capped at 3% of the price if you put down less than 10%, 6% with 10% to under 25% down, and 9% with 25% or more down. When a seller pays my fee in the normal way, that fee doesn't count toward the cap, but seller credits for your closing costs do. FHA and VA loans have their own rules.

Here's an example. You're buying a $650,000 home with 5% down, so your cap is 3%, or $19,500. The seller agrees to $10,000 toward your costs, and my rebate adds $6,500. Together that's $16,500, under the cap, so you get all of it. I check these numbers with your lender in the first week so there's no surprise on closing day.

Is the rebate taxed as income?

The IRS has ruled that a commission rebate is a reduction in your purchase price, not income. I'm a Realtor, not a tax professional, so check your own situation with your CPA.

Moving here from out of state?

I moved from California to Atlanta 19 years ago. Many of my buyers are relocating, and Georgia closings work differently than they're used to. Here an attorney runs the closing, not an escrow company, and the fees are split differently. I'll walk you through what's normal here so you know which numbers to question.

How do I get the rebate?

Hire me as your buyer's agent from the start. The rebate is written into our agreement before we see a single home, so there's nothing to negotiate later. I work Alpharetta, Johns Creek, Roswell, Sandy Springs, Dunwoody, Duluth, Suwanee, Cumming, Peachtree Corners, and the rest of the north metro.

See what your rebate could be here: https://atlanta-buyer-rebate.netlify.app/?utm_source=blog&utm_medium=organic&utm_campaign=buyer_rebate

Or call my office at (678) 456-4545 and I'll run your numbers with you.

Jennifer Orly Lazarian, licensed real estate agent (GA License 319470) with Virtual Properties Realty. Buyer rebate of up to 1% of purchase price paid at closing; subject to lender approval and loan program limits. Terms apply.

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