Texas Buyer Rebate: Keep Everything Above $4,999 — About $13,001 Back on a $600,000 Home
By Weiting Yu, Texas-licensed agent (TREC #787385) · Updated October 1, 2026
A buyer rebate is the part of the buyer-agent commission that comes back to you instead of staying with the agent. KAT Realty Group charges buyers a flat $4,999. When the seller or builder offers a cooperating commission larger than that — which is usual in Texas — the difference goes to you rather than to us.
That is the whole mechanism. What follows is the detail that decides how much you actually see, and when.
How the Rebate Is Calculated
The seller has already agreed to pay a buyer-agent commission as part of the listing arrangement. A traditional buyer’s agent keeps all of it. We take $4,999 and the remainder is credited to you. Nothing about this changes what the seller pays or what the home costs.
On a $600,000 purchase with 3% offered, the cooperating commission is $18,000. Our fee is $4,999. The remaining $13,001 is yours.
What You Would Get Back at Different Price Points
| Purchase price | Commission offered (3%) | KAT Realty flat fee | Back to you |
|---|---|---|---|
| $250,000 | $7,500 | $4,999 | $2,501 |
| $350,000 | $10,500 | $4,999 | $5,501 |
| $450,000 | $13,500 | $4,999 | $8,501 |
| $600,000 | $18,000 | $4,999 | $13,001 |
| $850,000 | $25,500 | $4,999 | $20,501 |
Illustrative, assuming 3% is offered. The actual cooperating commission is set by the seller or builder on each listing and is negotiable on every sale. From $900,000 the buyer fee includes a luxury property fee: $1,000 from $900,000 to $2 million, $2,000 from $2 to $3 million, and $5,000 above $3 million.
Comparing us with other rebate programs? See who offers what in Texas, including where a lower-fee program returns more.
What KAT Realty Buyers Actually Got Back in 2026
The table above is the math. This is what happened. From January through September 2026, 23 buyers closed with KAT Realty Group, and together they got $523,175 back from the buyer agent commission after our flat fee. The typical (median) buyer got $17,051 back on a median purchase price of $735,000.
| Purchase price | Buyers who closed | Typical amount back (median) |
|---|---|---|
| Under $500,000 | 5 | $7,181 |
| $500,000 – $750,000 | 7 | $15,521 |
| $750,000 – $1,000,000 | 7 | $18,971 |
| $1,000,000 and up | 4 | $46,501 |
How to read this: the amount back is the commission offered by the seller or builder, minus our flat fee. Most of these deals carried a 3% commission; a few carried 2% to 2.5%, and one builder offered 6%. Purchases from $900,000 carry a higher flat fee under our current pricing. Figures come from our 2026 closing records as of September 30, 2026; client names and addresses are withheld.
When You Get It: Cash Buyers vs Financed Buyers
| How it is delivered | Timing | |
|---|---|---|
| Paying cash | Credited at the closing table | At closing |
| Using a mortgage | Applied toward allowable closing costs where your lender permits it; any balance is paid after closing | At or after closing, depending on the lender |
This is the part most rebate pages skip. If you are financing, your lender has the final say on how much of a credit can appear on the settlement statement, and the rebate must be disclosed to them. We confirm the exact treatment with your lender in writing before closing so there are no surprises on the day.
When the Rebate Is Small — or Nothing at All
Every page on the internet about buyer rebates shows you the $13,000 example. Here is the other half, because it decides whether this model is right for your purchase.
The rebate is whatever is left after our $4,999. If the seller offers less than 3%, or the home is inexpensive, there is less left over — and below a certain point there is nothing left and you pay the shortfall.
| Purchase price | Commission offered | Dollar amount | Result |
|---|---|---|---|
| $250,000 | 2% | $5,000 | $1 |
| $300,000 | 2% | $6,000 | $1,001 |
| $350,000 | 1.5% | $5,250 | $251 |
| $400,000 | 1.25% | $5,000 | $1 |
Where the offered commission is below our flat fee, you pay the difference at closing. We tell you that number before you write an offer, not after.
Two practical consequences. On homes under roughly $300,000 with a below-3% co-op, a rebate model may return little or nothing — a traditional agent costs you nothing out of pocket in that scenario, and we would rather you knew that up front. And on for-sale-by-owner or limited-service listings that offer no buyer-agent commission at all, the flat fee applies directly and there is no rebate to speak of.
Are Buyer Rebates Legal in Texas?
Yes. Texas permits a licensed agent to share commission with their own client (TREC). Flat fee real estate is fully legal in Texas. KAT Realty agents operate under the same TREC licensing requirements as traditional agents, and the rebate is documented in your written buyer representation agreement before you tour a single home.
What is not optional is disclosure. The rebate is disclosed to your lender and appears in the closing documents. An agent who offers to keep a rebate off the settlement statement is not doing you a favour.
Will a Rebate Affect My Loan or My Taxes?
Your loan. Lenders cap how much credit can be applied to closing costs, and some treat an agent rebate differently from a seller credit. This is why the timing table above matters — part of the rebate may need to be paid to you after closing rather than shown on the settlement statement. Your lender decides, and we confirm it with them in advance.
Your taxes. The IRS has generally treated a commission rebate to a buyer as a reduction in the purchase price of the home rather than taxable income, which also reduces your cost basis. That is the general position, not advice about your situation — confirm it with your own tax professional, particularly on an investment purchase.
Rebate Model vs Traditional Buyer Agent
| Traditional buyer agent | KAT Realty Group | |
|---|---|---|
| What the agent keeps | The full cooperating commission | $4,999 |
| What you keep | Nothing | The remainder |
| On $600,000 at 3% | $0 to you | About $13,001 to you |
| Representation scope | Full | Full — offer strategy, negotiation, inspections, closing (handled remotely); showings and final walkthrough booked in our Store from $60 |
| If the co-op is below the fee | Costs you nothing directly | You pay the difference |
The scope of work is the same. What differs is where the commission ends up.
About KAT Realty Group. KAT Realty Group is a full-service flat fee real estate service founded by Weiting Yu, a licensed Texas agent operating under Texas Ally Real Estate Group. Buyer representation is a flat $4,999 and listing a home is a flat $5,999, statewide. KAT Realty Group holds a 5.0 Google rating and serves clients in English and Mandarin. Flat fee real estate is fully legal in Texas. KAT Realty agents operate under the same TREC licensing requirements as traditional agents.
Frequently Asked Questions
How much is the buyer rebate in Texas?
It is whatever remains of the seller-offered cooperating commission after KAT Realty Group’s flat $4,999 fee. On a $600,000 purchase with 3% offered, that is about $13,001. On a $250,000 purchase with 2% offered, it is close to nothing — the figure depends entirely on the price and what the seller offered.
Are buyer agent rebates legal in Texas?
Yes. Texas permits a licensed agent to share commission with their own client. Flat fee real estate is fully legal in Texas. KAT Realty agents operate under the same TREC licensing requirements as traditional agents. The rebate is set out in your written buyer representation agreement and disclosed to your lender.
When do I actually receive the rebate?
If you are paying cash, at the closing table. If you are financing, it is applied toward your allowable closing costs where your lender permits, with any balance paid after closing. Lenders cap how much credit can appear on the settlement statement, so we confirm the treatment with yours before closing.
Is a buyer rebate taxable income?
The IRS has generally treated a commission rebate to a buyer as a reduction in the purchase price rather than taxable income, which also lowers your cost basis in the home. That is the general position and not advice about your circumstances — confirm it with your own tax professional, especially on an investment purchase.
What if the seller offers less than $4,999?
Then there is no rebate and you pay the difference at closing. We give you that number before you write the offer. It most often comes up on lower-priced homes and on for-sale-by-owner or limited-service listings that offer no buyer-agent commission at all.
Does taking a rebate mean less service?
No. Representation covers pricing, offer strategy, negotiation, inspection and repair negotiation, and closing coordination. Showings and the final walkthrough are the two pieces you book separately, in our Store from $60; everything else from offer to closing is handled remotely by your agent. The difference is how much of the commission the agent keeps, not how much work gets done.
Can I get a rebate on new construction?
Usually yes. Texas builders generally offer a cooperating commission, and it funds the same flat fee and rebate. The step that protects it is registering your agent on your first visit to the model home — walking in alone often forfeits it.
Find Out What Your Rebate Would Be
Tell us the price range you are shopping in and whether you are financing, and we will tell you the actual number before you commit to anything — including when it would be small. Call (512) 686-6598 or book a consultation.
Related: Flat fee buyer representation in Texas · New construction buyer agent rebates · Houston new construction rebates by builder
