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.