Skip to main content
Fulltext search
FILTER RESULTS BY:
RECOMMENDED IN RENT
Moving to NYC after college? Here's how to find a rental apartment
RECOMMENDED IN BUY
How buying real estate in NYC is unlike anywhere else
RECOMMENDED IN SELL
A guide to using a no-fee renovation loan from a NYC real estate firm
RECOMMENDED IN IMPROVE
How to make your NYC renovation more pet-friendly
BEST REAL ESTATE WEBSITE!
National Association of Real Estate Editors
BEST REAL ESTATE WEBSITE! National Association of Real Estate Editors
Brick Underground
Social Links
follow:
  • Facebook
  • Twitter
  • Instagram
  • Flipboard
  • search
Brick Underground
☰ Brick Underground
Brick Underground
Brick Underground
☰
Brick Underground
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
    A rendering of the roofdeck at 55 Broad Street.
    Rent
    Housing lottery launches for 143 apartments in the Financial District
    Aerial panoramic view of Red Hook, Staten Island, Brooklyn, and Verrazano-Narrows Bridge
    Sales Market
    24 NYC neighborhoods where median prices more than doubled in the past decade
    431 West 54th Street is a co-op building that allows subletting.
    Investing
    Want to buy an investment apartment to rent out? Here's what you need to know
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
    Young woman using laptop at new apartment, with moving boxes around.
    Roommates + Landlords
    Didn't get your security deposit returned in NYC? A new chatbot can help
    A rendering of the six-story building in Park Slope.
    Affordable Housing
    Housing lottery launches for 45 rent-stabilized units in Park Slope
    Laura and her dog Jack
    Rent
    Why I moved to NYC from Brazil: I relocated for work and reunited with friends I made 15 years ago
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
    Aerial view of downtown Brooklyn
    Sell
    Median sales price in Brooklyn climbs to $995,000 in the second quarter
    Downtown New York City
    Sell
    Manhattan deals rose to highest level in nearly two years, defying national trends
    new condo building and older co-op buildings in Prospect Heights, Brooklyn
    Sell
    Brooklyn median price nears $1 million but the spring market is a question mark
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    Distressed woman sitting in her apartment
    Troubleshooting
    Ask Altagracia: My live-in partner is abusive. How can I get out of my lease?
    Sponsored By Outerbridge Law P.C.
    NYC apartment buildings with fire escapes
    Neighborhood Intel
    Can you sit on a fire escape in NYC? 5 things to know
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
    mini splits apartments new york city
    Products + Services
    Yes, you can install central AC in your co-op or condo unit. Here's how
    image
    Products + Services
    Take back your deck! How to win the war with mosquitoes and enjoy outdoor living again
    NYC apartment building with AC units
    Products + Services
    My neighbor's dripping AC is driving me crazy. What can I do?
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
    Burned and Boarded Up Windows
    When should your board hire a public adjuster?
    Manhattan GM
    What should we consider when renewing insurance for our building?
    Facade of NYC buildings
    How much is insurance on a NYC co-op or condo building?
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    Distressed woman sitting in her apartment
    Troubleshooting
    Ask Altagracia: My live-in partner is abusive. How can I get out of my lease?
    Sponsored By Outerbridge Law P.C.
    Building facades in New York in winter
    Roommates + Landlords
    Ask Altagracia: I withheld rent due to inadequate heat and I'm being hassled to pay it back. What should I do?
    Sponsored By Outerbridge Law P.C.
  • Brick Report
  • About Us
  • About Us
The subscription service is currently unavailable. Please check again later.
Fulltext search
FILTER RESULTS BY:
New Main menu
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
  • Brick Report
  • About Us
    • About Us
    • Advertise
  • About Us
SUBSCRIBE TO OUR NEWSLETTER →
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Sell [ SPONSORED ]

How buyer agent commission rebates are reducing broker fees in NYC

By Hauseit  | March 9, 2020 - 10:00AM
ADVERTORIAL
image

It's a big ask, so take it seriously and present a plan for what you'll do if you lose your job or your roommate stiffs you.

iStock

SHARE:
Share to Facebook
Share to Twitter
Print
More...

Real estate commissions in New York City have been falling for quite some time, but not in the way you might expect. While most sellers in NYC continue to pay between 5 percent and 6 percent in total commission on a resale, a declining percentage of this broker fee is actually being pocketed by real estate agents in the city. If sellers are still paying commission rates of 5 percent to 6 percent—as they have for decades—you may be wondering: Where is the rest of the commission going?

The answer is not what you might expect, but it’s good news for both buyers and sellers who have reluctantly accepted high broker fees and high closing costs as a cost of doing business in NYC real estate for decades. In recent years, savvy buyers have been pocketing some of the broker commission paid by sellers through buyer agent commission rebates. 

“A buyer agent commission rebate is simply another form of a closing gift given to a purchaser by her or his buyer’s agent,” explains Sonja Gosine, spokesperson of Hauseit, a New York City-based reduced commission platform for buyers and sellers established in 2014. 

“Instead of receiving a box of chocolates or a bottle of wine as a closing gift, astute buyers who have discovered the concept of a broker commission rebate are receiving large checks at closing, which can be up to 2 percent of the purchase price and amount to tens of thousands of dollars in savings on closing costs.”

image

Broker commission rebates were legalized in 2014 as part of a push by New York lawmakers to breathe competition into the real estate brokerage industry. However, despite the legislative change, broker commission rebates have been plagued by misinformation on the part of brokers and consumers in NYC, many of whom incorrectly believe that commission rebates are not allowed.

While many buyer’s agents in the city are unaware that rebates are legal, some agents are  prohibited from offering them through restrictions imposed by their brokerage firms. Other, more traditional buyer’s agents who are aware that rebates are legal are simply not willing to give up any commission to a buyer client at closing.

But for buyers who are in the know, a buyer agent commission rebate can be a serious payday, given the high purchase prices which are a staple of life in NYC. At Hauseit, “We offer buyers the ability to save up to 2 percent and reduce buyer closing costs through the largest broker commission rebate in NYC,” Gosine says. “The buyer of a $2 million property in NYC can save $40,000, assuming that the buyer agent commission being offered is 3 percent.”

While the prospect of saving thousands of dollars as a home buyer in NYC is enticing, the broker commission rebate itself serves another purpose: The additional monetary savings from a rebate can give a buyer the ability to step up on price in a bidding war and beat out the competition from fellow bidders. In other words, a commission rebate may enable a buyer who otherwise might not have come out ahead in a competitive bidding process to secure a highly desirable property.

Moreover, sellers in NYC typically agree to pay a fixed total commission upon closing, which is meant to be split equally between the listing agent and the broker representing the buyer. In the rare instance a buyer is unrepresented, the listing agent generally pockets both sides of the commission and neither the seller nor the buyer save any money since there is only one agent on the transaction.

And in an environment where sellers continue to pay hefty, fixed commissions of 5 to 6 percent on average in NYC, broker commission rebates are one of the most effective ways for buyers to painlessly extract broker fees from a transaction and ultimately push the city’s brokerage model towards more fair and moderate commission rates that benefit consumers.

How does Hauseit’s Buyer Agent Commission Rebate program work?

Hauseit pairs each buyer client with an experienced, local partner buyer agent who will not only serve the role as a traditional, full-service buyer’s broker but who has already agreed to discreetly write you a check for up to 2 percent of the purchase price, which comes out of the commission paid by the seller.

image

Most importantly, Hauseit’s partner brokers are traditional brokerage firms and agents based locally in NYC who never openly discount their services or offer rebates online. In a NYC brokerage environment which still relies largely on reputation and on the cooperation of fellow agents, Hauseit argues that this discretion makes for smoother transactions and less disruption.

“Since our launch in 2014, we’ve found that our buyer clients value the element of discretion when it comes to receiving a rebate,” says Gosine. “Our clients want to save money, but they also don’t want to risk losing a deal by antagonizing a listing agent who may not necessarily support broker commission rebates and what they mean for the future of the brokerage model in NYC.”

Hauseit also offers ways for sellers in NYC to reduce or fully eliminate broker commissions through their flagship Assisted FSBO listing service, which is similar to a DIY flat fee MLS listing that one may find in other parts of the country. The company also offers a 1 percent Full Service Listing option for sellers who are unable or unwilling to pay a 6 percent commission but understand the value in having a traditional, full-service agent.

“By addressing both sides of the typical commission structure in NYC real estate, our platform gives buyers and sellers more choice and ultimately encourages a less expensive and more equitable approach to broker commission rates in NYC,” Gosine says. 

image

Hauseit is a New York City-based reduced commission platform for buyers and sellers established in 2014. Click here to learn more about ways to save up to 6 percent as a seller in NYC, and click here to learn about ways to save 2 percent or more as a buyer in NYC.

 

Brick Underground articles occasionally include the expertise of, or information about, advertising partners when relevant to the story. We will never promote an advertiser's product without making the relationship clear to our readers.

topics:

broker fee brokers buying first-time buyer sellers selling
SHARE
TWEET
BRICK’S PICKS
NYC apartment building with AC units
My neighbor's dripping AC is driving me crazy. What can I do?
Historic brick facades of NYC apartment buildings
Getting overcharged by a landlord? Here’s how the Tenant Protection Unit helps rent-stabilized tenants
Apartment buildings in Soho
New Rent Guidelines Board report justifies a rent freeze, tenant advocates claim
Brooklyn apartment buildings
Understanding net effective rent: Here's how to calculate your real monthly rent
image
How much should you renovate your NYC apartment or house before selling?
Council Member Shahana Hanif hold press conference before the City Council vote on Arrow Linen spot rezoning.
City Council signs off on 10-story towers for Arrow Linen site
Follow Brick on Instagram
@brickunderground | #brickunderground
Brick UndergroundBRICK UNDERGROUNDREAL LIFE. REAL ESTATE. REAL NEW YORK.
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Main menu footer
  • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide

Get more news you can actually use...

Email Address

Delivered to your inbox weekly - for free.

*By signing up you agree to receive occasional emails on behalf of our sponsors

Footer Menu
  • About Us
  • Advertise

Copyright 2009-2024 by BND Ventures Inc | Privacy Policy | Terms of Service | Ad Choices | Login