From the Dept of Justice website: 

"How do rebates work?

Some real estate brokers offer consumers cash refunds or non-cash incentives to encourage them to use that broker’s services. Rebates are typically cash payments from the real estate broker to his or her client after closing. Incentives may include gift certificates, closing-cost payments, or free ancillary services such as home inspections or moving services.

How do rebates benefit consumers?

Rebates can save consumers several thousand dollars in a single transaction. For example, if a broker offers to refund one-third of its commission to the homebuyer, the average buyer of a $300,000 home could save $2,500 to $3,000 (based on the 2.5% to 3% commission rates typically earned by the buyer’s broker)."  DOJ website http://www.usdoj.gov/atr/public/real_estate/rebates.htm 

As the DOJ website indicates, buyer broker rebates save home buyers money.

Also, the Federal Government is getting involved with home buyer rebates to help spur the housing market by offering tax credits to home buyers.  According to  (CNNMoney.com) -- "First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes. A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns". 

"To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)" See http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm 

Also, check with your tax advisor to see if you qualify for a tax credit!  As you can see, the Federal government views rebates as a way to spur the housing economy, that is why they are offering rebates or cash credits in the form of tax credits to home buyers.

Whether is a tax credit from the federal government or a commission credit or rebate from your real estate broker, rebates are good way to save money on your home purchase.

Federal tax rebates may be expiring soon but commission rebates from real estate brokers are not so if you are looking to purchase a home and would like to get a rebate from your real estate broker, please click on to Home Buyer Rebates