Why Home Builders Should Use a Builder Rebate Program

Home builder rebates are available to all home builders for building products used in residential new construction projects, and they generally function in the same way that rebates for popular consumer programs do. That is, you purchase a product and can earn cash back after reporting that you purchased that product. 

So, let’s talk about it more! 

What are rebates? 

Rebates are a retroactive way to earn cash back on products you purchase, but they aren’t simply a one-time perk. They’re a solid way to add another revenue stream to your business, because a lot of manufacturers offer them, whether you realize it or not. 

In fact, we’ve written a whole guide, available for download, because they’re serious business, but not nearly enough home builders take advantage of them. We’ll highlight the top points in this blog post.

Different types of rebates: 

[1] Rebates negotiated and managed by a third-party rebate partner. These rebates are pre-negotiated by a company like HomeSphere on your behalf, and you typically need to become a member to tap into the rebates they offer. These rebates are available to home builders of every size and type so long as you seek them out. 

[2] Rebate programs offered by individual manufacturers. These are rebates you can apply for that will offer you a preset amount of cash back based on what you purchase. You can typically find information from a manufacturer’s website on how to apply if they offer them, but the administration will be on you.  

[3] Direct rebate agreements negotiated between you and the manufacturer. Direct rebate agreements are exclusive to you and a specific manufacturer. These differ from generic rebate programs a manufacturer might offer because the direct agreement is unique to you and your business. Typically, direct rebates make the most sense for builders (and developers) who build a large volume of homes or units per year. Companies like HomeSphere will help you manage and administer these agreements.  

How rebates work 

Different manufacturers and different rebate programs will have their own rebate requirements, but generally speaking, home builder rebates are paid out for specific product usage.  

If you’re on HomeSphere’s pre-negotiated rebate program, you must use the rebate-eligible products from our manufacturers to qualify for the rebate HomeSphere will pay out on behalf of our manufacturer partners.  

We want you to make the most you can, so we work with our partners to keep rebates competitive and available for the products you’re likely already using from these brands. 

When it comes to direct rebates, you’ll have to meet the requirements you negotiated as part of your unique agreement with a manufacturer to receive your payout. When and how you receive your payout will again depend on the manufacturer or rebate program.  

At HomeSphere, builders on our pre-negotiated rebate program receive their rebates in one check, either monthly or quarterly, at the builder’s discretion. No pre-paid gift cards, no 100-step instructions on how to redeem. 

What are rebate management programs? 

Rebate management programs help you to organize and track the rebates you’re earning from different manufacturers. The goal is to save you time and money so that you can earn rebate revenue without spending all your time chasing rebate revenue. 

Rebate programs will either offer exclusively pre-negotiated rebates on behalf of brand partners, or offer you both pre-negotiated rebates in addition to managing and administering direct rebates (like HomeSphere). 

Good rebate management programs allow you to:  

• Easily claim rebates for the products you’re using
• Skip the spreadsheets and see at-a-glance info about your rebate earnings whenever you want 
• Find ways for you to earn even more in rebates 
• Gain a partner in creating more beneficial relationships with manufacturers 

Rebate management programs will take over the claims and payout processes, so you only have to report your closings and projects to receive payment. When it comes to pre-negotiated rebates, it will be your rebate management team that negotiates rebate amounts on your behalf and stays on top of the requirements to claim a rebate through each manufacturer, acting as a middleman between you and the manufacturer. 

However, a good rebate program will also give you access to manufacturers, so you can build your own relationships, source new products and have a real contact to reach out to if you have supply chain issues or more. 

Check out our full guide for FAQs, an answer to the question on whether rebates are a scam or not (that's a resounding no!) and see real money potential for pre-negotiated rebates.