Most listings still offer a buyer-broker fee, commonly 2 to 3 percent of the price. With a traditional agent, all of it goes to the agent. With a rebate, part of it comes back to you.
How Arrivva's rebate works
Buyers pay Arrivva $9,750 flat. The buyer-broker fee is written into the offer you submit. We keep $9,750 of it, and everything above that comes back to you at closing. Nothing is paid up front, and if you don't close, you owe nothing.
| Purchase price | 2.5% buyer-broker fee | Arrivva fee | Your rebate |
|---|---|---|---|
| $800,000 | $20,000 | $9,750 | $10,250 |
| $1,200,000 | $30,000 | $9,750 | $20,250 |
| $1,500,000 | $37,500 | $9,750 | $27,750 |
| $2,000,000 | $50,000 | $9,750 | $40,250 |
Rebates are legal in California and Washington, where we represent buyers. You can see what we've returned to clients on our results page.
Five ways to use it
- Strengthen your offer. Credit some or all of it back to the seller. Your offer looks better to them without raising your real cost.
- Cover closing costs. Apply it to your closing costs, up to your lender's limits.
- Buy down your rate. Use it toward points to lower your mortgage rate, if your lender allows. More on that in Mortgage Points and ARMs.
- Lower the price. On a cash purchase, the price simply drops by the rebate amount.
- Take it as cash. We wire it to you after closing.
Why it matters more than it sounds
- It changes the incentive. A commission agent is paid more when you pay more. We're paid the same at any price, so negotiating the price down never costs us anything.
- It's real money at Bay Area and Southern California prices. On a $1.5 million home, a 2.5 percent buyer-broker fee is $37,500. Most of that can come back to you.
- It gives you room in a bidding war. Crediting part of the rebate to the seller lets you compete without stretching your budget.
What to know before you count on it
- Lenders set limits. Credits toward closing costs are capped by loan program, and a lender may reduce the credit if it exceeds your actual costs. We plan this with you before you write the offer.
- Taxes. A rebate received at closing is generally treated as a reduction of your purchase price, not taxable income. Confirm with your tax advisor.
- It's set in your offer. The buyer-broker fee comes from the purchase contract you submit, and we write it into every offer. You pay nothing until closing.
The bottom line
You pay for representation either way. A rebate means you pay a set price for it and keep the difference.
Your next step
Buying? Arrivva represents buyers for a $9,750 flat fee, and the rest of the buyer-broker fee comes back to you as a rebate at closing. Nothing up front; you pay only if you close. See how buying with Arrivva works.
Keep reading
- How to Buy a Home Without Overpaying in CommissionsYour buyer's agent isn't free. The fee is built into the price. Here's how a flat-fee buyer's broker works, and how the rest of the buyer-broker fee comes back to you as a rebate.
- Mortgage Points and ARMs: Two Ways to Lower Your PaymentYou don't write a check to an interest rate. You pay a monthly payment. Here's how points and adjustable-rate mortgages can lower it, how to find the break-even, and who can pay for points.
- CaliforniaGO's "$10,000" Is a Joke. Here's the Math.CaliforniaGO promises up to $10,000 toward closing costs. It isn't a state program, and the money comes out of agent commissions. Here's the fine print and the math.