Requesting a Hauseit Buyer Rebate is the only way to safely save money and reduce your buyer closing costs. That’s because Hauseit’s brand name partner brokers never openly discount and have excellent working relationships with the real estate community.

Broker commission rebates are an effective way to save money because of NYC’s antiquated commission structure for sellers. Sellers in NYC pay 100% of all real estate commissions. Furthermore, sellers typically agree to pay a fixed commission amount (6%) which remains the same even if a buyer does not have a buyer’s agent.

There is no way for a seller to avoid paying the commission, and the seller usually does not save any money if a buyer is unrepresented. Therefore, the only way for a buyer to extract this built-in commission bill from the sale price is to request a Hauseit Buyer Rebate.

Here is how a Buyer Agent Commission Rebate Works in NYC:

The seller pays 6% commission which is split equally between the listing agent (3%) and your buyer’s agent (3%). If the total commission bill is less than 6%, your buyer’s agent will still receive half of the total commission.

Your buyer’s agent will rebate you back a portion of the 3% commission paid to him or her on the deal, thereby reducing your buyer closing costs and saving you thousands on your purchase.

If you are unrepresented, the seller will still pay the same 6% commission (and all of it will go to the listing agent, meaning they are double paid at your expense)!

If you are unrepresented, the seller will still pay the same 6% commission (and all of it will go to the listing agent, meaning they are double paid at your expense)!

The typical Hauseit Buyer Rebate in NYC will save you $20k or more on your purchase price of your new home. Requesting a buyer agent commission rebate will also help you offset a portion of your buyer closing costs, which are especially high in New York City. If you are buying a home above $1 million, the broker commission rebate you receive will likely offset your entire Mansion Tax bill.

If you are buying new construction or a ‘sponsor unit’ from an existing building, buyer closing costs are even higher. This is because it’s customary for the buyer of sponsor units to pay the NYC and NYS Transfer Taxes (1.4-1.825%) which are usually paid by sellers for traditional resales. On the other hand, buyer closing costs are lowest for co-ops because there is no Mortgage Recording Tax payable on your loan.

Requesting a buyer agent commission rebate in NYC is a no-brainer because of how broker commissions are structured in NYC. Sellers sign onerous commission agreements which obligate them to pay a fixed commission (usually 6%) no matter what, even if the buyer is unrepresented. Furthermore, listing agents in NYC are required by the Real Estate Board of New York to split the total commission equally with a buyer’s agent.

NYC’s unique commission structure for sellers means that working with a buyer’s agent is free from the perspective of the buyer. Working with a buyer’s agent means that half of the total commission will be paid to the buyer’s agent. Working directly with a listing agent means that he or she will collect the entire 6% commission. The seller does not care whether or not you have a buyer’s agent because they’ve already agreed to pay a fixed commission amount at closing.

In other words, you won’t save any money by negotiating directly with a listing agent since the seller has already agreed to pay a fixed commission amount at closing. The fact that buyer agents are perceived as ‘free’ is the reason why over 75% of buyers in NYC are represented by buyer’s brokers.

Requesting a Hauseit Buyer Rebate is the most effective way to ‘extract’ some of this built-in commission and put that money back in your pocket as the buyer.

Broker Commission Rebates in NYC are also generally considered to be non-taxable, which means that your rebate can help you save dollar-for-dollar on your purchase price and closing costs.

Broker Commission Rebates in NYC are also generally considered to be non-taxable, which means that your rebate can help you save dollar-for-dollar on your purchase price and closing costs.

The average listing agent in NYC wasn’t born yesterday, and the very idea of a buyer receiving a rebate is enough to infuriate and offend most listing agents in NYC. To make matters worse, a large percentage of agents in the NYC still think that rebates are illegal. How can you expect a traditional listing agent to take your offer seriously if they know that your buyer agent is ‘disrupting the industry’ and paying you some of the listing agent’s commission at closing?

As a result of this obvious conflict of interest, discretion is the single most important factor when requesting a Buyer Agent Commission Rebate in NYC. After all, why does a rebate matter at all if you lose the deal because the listing agent decides to give more consideration and attention to a competing offer from a ‘traditional’ buyer agent who is not openly advertising rebates online?

When requesting a Hauseit Buyer Rebate, you’ll always be paired with a trustworthy, experienced, brand name buyer’s broker who never openly discounts so you won’t jeopardize your purchase.

Buyer Agent Commission Rebates in NYC are not generally considered to be taxable income. The IRS released a private letter ruling on the taxability of buyer agent commission rebates in 2007. The IRS letter equated broker commission rebates to automobile rebates and stated that both are considered an adjustment to the purchase price as opposed to income.

Although we encourage you to consult with your tax professional, the IRS letter above makes a compelling case to treat broker commission rebates as non-taxable income. NYC’s high average sale price means that the typical Hauseit Buyer Rebate can exceed $20k and save you a tremendous amount of money on your purchase.

The most important reason for working with a buyer’s agent in NYC is to secure a discreet NYC buyer broker commission rebate so you can save money on your purchase. Working with a buyer’s agent also offers you the benefit of professional representation to help you navigate through the listing search, offer submission, deal negotiation, board application and overall purchase process to ensure that you have the best chance of securing that highly sought after property.

It’s widely acknowledged that buying real estate in NYC is far more complicated than in other parts of the country. A seasoned buyer’s agent can increase the likelihood of you outmaneuvering competing buyers and obtaining co-op board approval. Since there are over 50,000 real estate agents in NYC, there is a huge variation in terms of quality. Working with an inexperienced buyer’s agent will make you stick out like a sore thumb and may actually harm your chances of closing on your dream home.

Disclaimer: The specific amount of your buyer agent commission rebate (broker rebate) is subject to negotiation and mutual agreement between you and the assigned broker.

Disclosure: Hauseit and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.