How do commission rebates work?

To understand how a commission rebate works, you need to first understand how commissions work in real estate.

Typically a listing agent charges between 5-6% (the national average is around 5.2%), and they split that commission with the agent who brings the buyer.

For a commission rebate, the agent who is representing the buyer shares a portion the the commission they receive from the listing agent with their client, in the form of a commission rebate. You can see this illustrated with the diagram below.