Why Commission Rebate Is a Disaster
Why Commission Rebate Is a Disaster
In today’s property market, too many agents fall into the trap of offering commission rebates just to close a deal. At first glance, it seems like a clever tactic to attract buyers. In reality, it’s the fastest way to destroy your career and damage the credibility of the entire industry.
Why Rebates Harm the Industry
1. They Destroy Professional Value
Rebates signal weakness. By giving up part of your fee, you’re effectively telling the client:
“I don’t believe my service is worth the full price.”
When this happens often enough, clients stop respecting agents as professionals. They see them as replaceable middlemen whose only value is being cheap.
2. They Train Clients to Be Price Shoppers
The more rebates buyers get, the more they expect it. Instead of choosing an agent based on expertise, service, or trust, they shop like they’re bargaining in a night market.
3. They Trigger a Race to the Bottom
Once rebate culture spreads, every agent is pressured to slash commissions. Eventually, no one can survive on the crumbs left behind. Service quality collapses, and the entire industry suffers.
Why Rebates Kill Your Career
- You Attract the Wrong Clients
Rebate-hunters are never loyal. Today they demand 1% back; tomorrow they’ll walk away for someone offering 1.5%. They’ll take your time and effort, then use your quote to get a lower one from someone else. - You Work Harder for Less
Discount clients are ironically the most difficult. They drain your time, pile on demands, and still expect “five-star service” for a two-star fee. - You Can Never Raise Your Fee Later
Once you’ve set the precedent, you’ve trapped yourself. Try charging full commission next time, and the client will say, “But you gave me a discount before.”
Myth vs Fact: The Rebate Illusion
- Myth: Rebates win me more deals.
Fact: They only win you the worst deals—disloyal, demanding clients who will never pay full price. - Myth: If I don’t rebate, I’ll lose all my clients.
Fact: Top producers never rebate. They compete on exclusivity, expertise, and brand strength. - Myth: Clients only care about price.
Fact: Clients care about results. If you can close faster, negotiate harder, and market better, the extra 1–2% means nothing compared to the outcome.
The Smarter Move: Differentiate, Don’t Discount
Here’s the truth most agents don’t want to hear: when a buyer insists on a rebate, a quality agent should walk away. This isn’t about being stubborn; it’s about protecting your value and your business.
When those buyers go with a rebate agent, they’ll quickly realize what “cheap service” really means:
- Minimum commission = minimum effort.
- Calls unanswered.
- Marketing non-existent.
- Negotiation sloppy or absent.
- Transactions delayed, messy, or even collapsed.
Sooner or later, these buyers hit a wall. Only then do they wake up and respect the importance of a professional agent who charges properly and delivers results.
How to Compete Without Rebates
The best agents don’t discount—they differentiate. They build a reputation so strong that clients seek them out for their expertise, not their price.
- Control Listings or Projects – Secure exclusivity so clients must come through you.
- Master the Market – Know your area, prices, and processes so well that clients see you as irreplaceable.
- Build Personal IP (Brand) – Stand out online and offline so buyers come to you, not the other way around.
- Prove Your Results – Share past successes and testimonials to justify your full fee confidently.
The Bottom Line
Rebates aren’t a competitive edge—they’re a confession of weakness. They devalue the profession, ruin your career trajectory, and turn clients into bargain-hunters.
The real winners are the agents who refuse to play the rebate game. Walk away, let the rebate hunters suffer, and be there when they finally realize that in property, cheap agents cost the most.
