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Buyer Commission Rebate NYC

Let’s face it, over 98% of today’s NYC home buyers start their search online. So why use a buyer’s agent when searching for a property in NYC? The single most compelling reason for using a buyer’s agent to represent you on your NYC home purchase is to secure a buyer commission rebate so you can receive a cash rebate at closing. The typical rebate of 1% off your home purchase equals $20,000 for the average NYC home!

What’s the typical rebate you ask? You can usually expect 33% of the commission earned by the buyers’ agent from the listing agent payable to you at closing. In your typical real estate transaction, the seller will pay 6% regardless of whether there is a buyers’ agent involved or not. If the buyer is unrepresented, the listing agent gets to keep all 6%. If there is a buyer agent involved, NYC agents are contractually required by REBNY to “co-broke,” or share 50% of the commission with the buyer’s agent. Keep in mind that the specific rebate amount is subject to the agreement you make between yourself and your buyer’s agent.

In addition to offering you a buyer commission rebate, a quality NYC buyer’s agent also provides you with critical representation during the property search, offer submission, negotiation and closing process.Commission Rebate

Infographic Source: http://www.hauseit.com/home-buyer-cash-back/

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8 comments

  1. Great infographic. In my experience, most NYC agents won’t even admit that commission rebates are legal in New York City! They can be very, very lucrative for buyers as well!

    Glad to see the guys at Hauseit spreading the word and helping home buyers make more informed choices about being represented by a buyer’s agent in such a great city!

  2. Really interesting article and concept. I think the key realization that I had and most people should know is that in NYC there really isn’t a disadvantage to purchasing a home represented. Listing agents aren’t allowed by strict REBNY rules to not work with buyers’ agents. They are strictly required it seems to share automatically 50% of their commission if there is a buyers’ agent.

    If that is the case then it’s totally a no brainer to use a buyers’ agent, and make sure that you get a buyer agent commission rebate for it in NYC. 1% plus free service? Done.

    • Hi Benny – you are correct! REBNY requires all of its member firms and salespeople/brokers to sign the “RLS UNIVERSAL CO-BROKERAGE AGREEMENT RULES AND REGULATIONS,” which mandates that commissions be split equally between the listing agent and NYC buyer’s agent. A buyer’s broker in NYC can never earn less than half of the total commission being paid by the seller. In fact, it’s not uncommon for a listing agent to split more than 50% of the total commission to a buyer’s agent in situations where there is lots of competing inventory and a limited supply of buyers.

  3. There’s no doubt that broker commission rebates are the way to go when buying in NYC. It’s the only way for us buyers to extract value out of the onerous commission structure that sellers agree to. Better yet, upon further reading I’ve discovered that buyer broker commission rebates in NYC are not generally considered to be taxable income! FYI see below

    Broker Commission Rebates are Not Taxable: https://www.hauseit.com/are-buyer-broker-commission-rebates-taxable-in-nyc/

    • Hi Luis – thanks for sharing our post! You are correct in saying that buyer broker commission rebates in NYC are not generally considered to be taxable income. The following video explains the topic of taxation of NYC real estate commission rebates in greater detail.

      Are NYC Buyer Broker Commission Rebates Taxable? FAQ on IRS Tax and 1099 for Commission Rebates: https://www.youtube.com/watch?v=XtrVFL6kvH0

  4. What I like about Hauseit is the non shadiness factor. Too many of these discount rebate brokers I’ve found online appear to be just one guy with a broker’s license. Often times a lawyer by trade. I’m always cautious when I feel like something is too good to be true.

    The guys at Hauseit however paired me with partner brokers who are truly the real deal. Some of the best and most reputable brokerage brands in the city who have discreetly agreed to provide discounts to Hauseit customers. I felt very comfortable with the broker they paired with me and never once did I feel like somehow I was getting less quality just because of the rebate.

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