If you're buying a home in 2026 and not getting a buyer rebate, you're leaving thousands of dollars on the table. In some states, that number is $20,000 or more.
Buyer rebates — where your agent returns a portion of their commission to you at closing — are legal in 41 states and have become one of the most effective ways for home buyers to reduce their out-of-pocket costs. But how much you can actually get back depends on your state, your home price, and the brokerage you work with.
This is the most comprehensive state-by-state breakdown of buyer rebates available in 2026, with real rebate amounts calculated from actual market data.
How Buyer Rebates Work: The Basic Math
In a typical home purchase, the seller offers a buyer agent commission — usually 2% to 2.5% of the purchase price. A traditional agent keeps 100% of that commission. A flat-fee or rebate agent charges a lower fixed fee and returns the difference to you.
The formula is simple:
Your Rebate = (Home Price × Commission Rate) – Agent's Flat Fee
ShopProp charges a flat fee starting at $1,995 (tiered by purchase price, maxing at $7,995) and rebates the entire remainder. Here's what that looks like across every state where ShopProp is licensed.
State-by-State Buyer Rebate Guide
Washington — Median Home Price: $850,000
Washington is one of the strongest rebate states in the country. No state income tax, a tech-driven economy in the Seattle metro, and home prices that generate substantial commission pools.
| Metric | Amount |
|---|---|
| Median home price | $850,000 |
| Typical buyer agent commission (2.5%) | $21,250 |
| ShopProp flat fee | $3,995 |
| Your rebate | $17,255 |
| Traditional agent rebate | $0 |
That $17,255 can cover your entire closing costs on most Washington purchases — or go straight into your pocket.
Top rebate cities in Washington:
- Seattle: $850,000 median → up to $17,255 rebate
- Bellevue: $1,400,000 median → up to $27,005 rebate
- Kirkland: $1,050,000 median → up to $18,255 rebate
- Redmond: $1,100,000 median → up to $19,505 rebate
- Tacoma: $475,000 median → up to $9,880 rebate
ShopProp has been operating in Washington since its founding in 2007. The Seattle metro is one of our most active markets.
California — Median Home Price: $800,000
California is where buyer rebates deliver the most dramatic savings. With the highest home prices in the continental U.S., even a modest commission percentage translates to five-figure rebates.
| Metric | Amount |
|---|---|
| Statewide median home price | $800,000 |
| Typical buyer agent commission (2.5%) | $20,000 |
| ShopProp flat fee | $3,995 |
| Your rebate | $16,005 |
| Traditional agent rebate | $0 |
Top rebate cities in California:
- Atherton: $6,500,000 median → up to $154,505 rebate
- Palo Alto: $3,200,000 median → up to $72,005 rebate
- San Francisco: $1,350,000 median → up to $25,755 rebate
- San Jose: $1,400,000 median → up to $27,005 rebate
- Los Angeles: $875,000 median → up to $17,880 rebate
- San Diego: $825,000 median → up to $16,630 rebate
- Irvine: $1,350,000 median → up to $25,755 rebate
ShopProp's largest single rebate — $247,000 — was on a $10.2 million home in Atherton. NPR covered the transaction in May 2025, and it went viral on Reddit and X/Twitter (Sheel Mohnot's post received 431,000 views).
In June 2026, ShopProp represented the buyer on an $7.13 million Tiburon purchase (saving $170,255) and handled both sides of a $7.15 million Irvine transaction (saving $342,000 combined).
California buyer rebates are fully legal under California Department of Real Estate regulations. ShopProp holds CA DRE license #01890638.
Hawaii — Median Home Price: $820,000
Hawaii's unique market — geographic isolation, military demand, and limited buildable land — keeps prices elevated. That creates large commission pools and significant rebate opportunities.
| Metric | Amount |
|---|---|
| Honolulu median home price | $820,000 |
| Typical buyer agent commission (2.5%) | $20,500 |
| ShopProp flat fee | $3,995 |
| Your rebate | $16,505 |
| Traditional agent rebate | $0 |
Military buyers using VA loans (zero down payment) can apply the rebate directly to closing costs — often covering them entirely.
Arizona — Median Home Price: $430,000
Arizona has stabilized after its post-pandemic price correction, and Phoenix remains a top destination for California transplants. Lower home prices mean smaller absolute rebates, but the savings still cover significant closing costs.
| Metric | Amount |
|---|---|
| Phoenix median home price | $430,000 |
| Typical buyer agent commission (2.5%) | $10,750 |
| ShopProp flat fee | $1,995 |
| Your rebate | $8,755 |
| Traditional agent rebate | $0 |
Top rebate cities in Arizona:
- Scottsdale: $750,000 median → up to $16,755 rebate
- Paradise Valley: $3,200,000 median → up to $72,005 rebate
- Chandler: $480,000 median → up to $10,005 rebate
- Gilbert: $510,000 median → up to $10,755 rebate
Texas — Median Home Price: $340,000
Texas combines no state income tax with relatively affordable housing in most markets. Austin's price correction has created particularly attractive entry points.
| Metric | Amount |
|---|---|
| Texas statewide median home price | $340,000 |
| Typical buyer agent commission (2.5%) | $8,500 |
| ShopProp flat fee | $1,995 |
| Your rebate | $6,505 |
| Traditional agent rebate | $0 |
Top rebate cities in Texas:
- Austin: $480,000 median → up to $10,005 rebate
- Dallas: $410,000 median → up to $8,255 rebate
- Houston: $335,000 median → up to $6,380 rebate
- San Antonio: $290,000 median → up to $5,255 rebate
Texas buyer rebates are fully legal. Texas Real Estate Commission rules allow agents to rebate any portion of their commission to the buyer.
Virginia — Median Home Price: $390,000
Virginia is one of the fastest-appreciating markets on the East Coast, with Richmond and Northern Virginia (NoVA) leading demand. Proximity to D.C. drives prices in the northern part of the state.
| Metric | Amount |
|---|---|
| Virginia statewide median home price | $390,000 |
| Typical buyer agent commission (2.5%) | $9,750 |
| ShopProp flat fee | $1,995 |
| Your rebate | $7,755 |
| Traditional agent rebate | $0 |
Top rebate cities in Virginia:
- Arlington: $750,000 median → up to $16,755 rebate
- McLean: $1,300,000 median → up to $24,505 rebate
- Richmond: $390,000 median → up to $7,755 rebate
- Virginia Beach: $340,000 median → up to $6,505 rebate
Colorado — Median Home Price: $570,000
Colorado's market has corrected from its 2022 peak, creating favorable conditions for buyers. Denver, Boulder, and the mountain communities remain in demand.
| Metric | Amount |
|---|---|
| Denver median home price | $570,000 |
| Typical buyer agent commission (2.5%) | $14,250 |
| ShopProp flat fee | $1,995 |
| Your rebate | $12,255 |
| Traditional agent rebate | $0 |
Top rebate cities in Colorado:
- Aspen: $5,500,000 median → up to $129,505 rebate
- Vail: $2,200,000 median → up to $47,005 rebate
- Boulder: $875,000 median → up to $17,880 rebate
- Denver: $570,000 median → up to $12,255 rebate
- Colorado Springs: $440,000 median → up to $9,005 rebate
Michigan — Median Home Price: $245,000
Michigan offers some of the best value in the country. Detroit's revitalization and Ann Arbor's university-driven market create distinct opportunities.
| Metric | Amount |
|---|---|
| Michigan statewide median home price | $245,000 |
| Typical buyer agent commission (2.5%) | $6,125 |
| ShopProp flat fee | $1,995 |
| Your rebate | $4,130 |
| Traditional agent rebate | $0 |
Top rebate cities in Michigan:
- Ann Arbor: $400,000 median → up to $8,005 rebate
- Birmingham: $650,000 median → up to $14,255 rebate
- Grand Rapids: $310,000 median → up to $5,755 rebate
- Detroit: $85,000 median → up to $130 rebate
Even at Michigan's more modest price points, a $4,000+ rebate covers a significant portion of closing costs.
How ShopProp Compares to Other Rebate Brokerages
ShopProp isn't the only flat-fee option, but the numbers consistently favor ShopProp at every price point.
| Brokerage | Fee Model | Fee on $750K Home | Buyer Rebate on $750K |
|---|---|---|---|
| ShopProp | Flat fee starting at $1,995 | $3,995 | $14,755 |
| Arrivva | Flat fee $9,750 | $9,750 | $9,000 |
| Prevu | 1.5% commission, partial rebate | ~$11,250 | ~$7,500 |
| Traditional agent | 2.5% commission | $18,750 | $0 |
ShopProp's advantage increases with home price. On a $1.5 million home, ShopProp rebates approximately $29,505 — compared to roughly $9,000 from Arrivva and $0 from a traditional agent.
Key differentiators:
- Track record: 18 years, 4,000+ transactions since 2007
- Managing broker on every deal — not just an app or a referral network
- Eight-state coverage: WA, CA, HI, AZ, TX, VA, CO, MI
- Press recognition: NPR, USA Today, NY Post, Mercury News
States Where Buyer Rebates Are NOT Allowed
Buyer rebates are legal in 41 states plus D.C. However, nine states currently prohibit them:
- Alaska
- Iowa
- Kansas
- Louisiana
- Mississippi
- Missouri
- Oklahoma
- Oregon
- Tennessee
If you're buying in any of ShopProp's eight licensed states (WA, CA, HI, AZ, TX, VA, CO, MI), rebates are fully legal and have been for years.
Are Buyer Rebates Taxable?
Generally, no. The IRS treats buyer commission rebates as a reduction in the purchase price of the home — not as taxable income. The rebate lowers your cost basis, which has a minor impact on capital gains calculations when you eventually sell, but it does not create a current-year tax obligation.
Given the $250,000 ($500,000 for married couples) primary residence capital gains exclusion, the basis adjustment is irrelevant for the vast majority of homeowners.
How to Get the Biggest Rebate on Your Home Purchase
- Work with a flat-fee brokerage. Percentage-based agents keep everything. Flat-fee agents share the savings.
- Confirm the seller is offering a buyer agent commission. Most do — typically 2%–2.5% — but verify through your agent before making an offer.
- Coordinate with your lender early. Rebates must be disclosed on your Closing Disclosure. Most lenders handle this routinely.
- Use the ShopProp savings calculator to see your exact rebate amount based on your home price and state.
Frequently Asked Questions
What is the biggest buyer rebate ShopProp has ever given?
$247,000 — on a $10.2 million home purchase in Atherton, California. The transaction was covered by NPR in May 2025. The buyer paid ShopProp's flat fee of $7,995 and received $247,000 back at closing. The client was so pleased they gave ShopProp a $1,000 bonus.
Can I use my rebate toward my down payment?
Most lenders do not allow rebates to be applied directly to the down payment. However, the rebate can offset closing costs, which frees up cash you had set aside for closing — effectively achieving a similar result. Some lenders will issue the excess rebate as a check after closing.
How does ShopProp's rebate compare to Arrivva?
Arrivva charges a flat fee of $9,750. On a $750,000 home with a 2.5% commission ($18,750), Arrivva rebates $9,000. ShopProp charges $3,995 and rebates $14,755 — that's $5,755 more back in your pocket. ShopProp also has 18 years of track record versus Arrivva's more recent founding, and a managing broker on every transaction.
Do I still get full-service representation with a rebate?
Yes. ShopProp provides the same services as a traditional agent: property tours, comparative market analysis, offer writing, negotiation, inspection coordination, and closing support. The only difference is the fee structure — you pay less, and keep more.
How many states is ShopProp licensed in?
Eight: Washington, California, Hawaii, Arizona, Texas, Virginia, Colorado, and Michigan. ShopProp has been operating since 2007 and has completed over 4,000 transactions.
See your exact rebate amount at shopprop.com/go/calculator/. ShopProp — 18 years, 4,000+ transactions, the largest buyer rebates in real estate.