Quick Answer
The seller pays Portfolio Home Realty a 2.5% commission. We keep 1.5% to operate our brokerage and return 1% of the purchase price to you at closing. On a $1,000,000 home: seller pays $25,000 in buyer agent commission, we keep $15,000, you receive $10,000 cash at closing.
Key Takeaways
- The formula: Purchase Price × 0.01 = your rebate. Always.
- No cap. No conditions. Fully disclosed from day one.
- Legal in California since 2003 (DRE confirmed)
- Processed through escrow — visible on your Closing Disclosure
- You choose how to use it: cash, closing cost offset, or rate buydown
The Math — Exactly How It Works
| Purchase Price | Seller Pays (2.5%) | PHR Keeps (1.5%) | You Receive (1%) |
|---|---|---|---|
| $700,000 | $17,500 | $10,500 | $7,000 |
| $1,000,000 | $25,000 | $15,000 | $10,000 |
| $1,500,000 | $37,500 | $22,500 | $15,000 |
| $2,450,000 | $61,250 | $36,750 | $24,500 |
| $4,500,000 | $112,500 | $67,500 | $45,000 |
Three Ways to Use Your Rebate
1. Cash at closing
The most straightforward option. Your rebate is credited at close of escrow and the difference wires to your bank account. No restrictions on how you use it.
2. Offset closing costs
California closing costs run 1.5-2% of purchase price. Your 1% rebate can cover most or all of them. On a $1M purchase, closing costs might be $18,000 — your $10,000 rebate covers more than half.
3. Mortgage rate buydown
Use your rebate to permanently buy down your interest rate at closing. At current rates, $10,000 in points can reduce your rate by approximately 0.25%, saving you $50-80/month for the life of the loan.
Why Can PHR Offer This?
Traditional brokerages have large physical offices, franchise fees, advertising overhead, and heavy administrative costs. Portfolio Home Realty operates lean — and passes the savings to buyers in the form of a cash rebate. You get the same expert agent, the same contract terms, and the same legal protections. You just get paid more at the end.
In Simple Terms
Every home sale has a buyer's agent commission baked in. Normally it goes entirely to your agent. We give most of ours to you. That is the whole model.
Frequently Asked Questions
Yes. California has allowed buyer rebates since 2003 when the Department of Real Estate confirmed that licensed brokerages may share their commission with buyers. Portfolio Home Realty is a fully licensed California brokerage (DRE #02232009) and the rebate is fully disclosed in your Buyer Representation Agreement.
No. The seller pays the same commission regardless. Portfolio Home Realty simply chooses to share part of its commission with the buyer rather than keeping it all. The seller's net proceeds are identical to a transaction with any other buyer's agent.
The rebate is processed through escrow. It appears on your Closing Disclosure as a buyer credit from Portfolio Home Realty. You receive it at close of escrow — either as a direct cash credit, applied to closing costs, or as a mortgage rate buydown.
The bottom line
The seller pays our commission. We return 1% of your purchase price at closing. Here is exactly how it works, why it is legal, and how to use the money. Portfolio Home Realty gives Southern California buyers full-service representation and returns 1% of the purchase price at closing. Call (949) 379-5320 or get a free estimate online. DRE #02232009.