Every country has a different legal practice towards awarding real estate agent commission to buyers as rebate.
If the legal system does not allow rebate.
The real estate negotiator has to inform the buyer rebate is an act of commercial bribery. If the negotiator gets caught, the agent can get their practicing license suspended and the buyer will get investigated by authorities.
If the legal system allows rebate.
The real estate agent has to negotiate the rebate with any potential buyer before performing any work. In most cases, a simple verbal or written agreement is sufficient. To convince potential buyers to drop the rebate idea, agents should display value and inform buyers of their ability to help them save money by pressing down the purchase price. These savings are worth way more than getting the rebate. The agent can also suggest sellers to provide extra savings like free air conditioning, free painting, etc to the buyer.
However if the buyer insists on the rebate, just incorporate the buyer rebate cost into the transaction price with the seller’s knowledge and very likely the buyer has to pay more. Most sellers do not mind selling at a higher price and pay a higher commission.
If the listing is an exclusive appointment rather than an adhoc appointment, the agent has even more control in convincing the buyer to remove the idea of rebate.
