Let’s back up: what is a commission rebate and where does it come from?

Let’s start with the easy part:  the seller typically pays a listing agent a total commission, and the listing agent typically turns around and offers approximately half of that to brokers representing buyers.   Bottom-line, the seller is essentially paying a commission to two different brokers:  the one that sells their home, and the one that brings a buyer.  A commission rebate, sometimes called a buyer rebate, or alternatively a commission refund, is essentially an act whereby the broker working with the buyer shares part of their part of the commission with the buyer, generally in exchange for the buyer saving the broker time.   So the rebate is essentially money coming from the seller (that otherwise would have all gone to the broker.)