Updated February 2026
Half the buyer-agent commission, up to 1.5% of the purchase price, returned at closing — how it works and what to confirm first.
A NYC buyer commission rebate is part of a brokerage’s commission returned to the buyer at closing. BRN returns half of the seller-paid commission we receive, up to 1.5% of the purchase price. You never pay BRN a brokerage fee.
On a $3 million apartment with a 3% seller-paid commission, that means $45,000 back. We guide the search, pricing, negotiation and steps through closing. Here’s how the rebate is calculated and delivered.
What Is a NYC Buyer Commission Rebate?
A buyer commission rebate is part of the commission earned by the buyer’s brokerage that is returned to the buyer at closing. It may also be called a buyer-agent rebate, commission return, commission refund or broker credit.
In NYC, sellers commonly offer a commission to the buyer’s broker. At BRN, our compensation comes from the seller, and you never pay us a brokerage fee. We confirm the seller’s offer for each property.
When BRN represents the buyer and receives that commission, BRN returns half of it to the buyer, capped at 1.5% of the purchase price.
For example:
If BRN receives a 3% commission, the buyer receives 1.5% of the purchase price back.
If BRN receives a 2.5% commission, the buyer receives 1.25% back.
If BRN receives a 2% commission, the buyer receives 1% back.
BRN handles the calculation and payment. The buyer receives the benefit without taking on the broker’s work.
Are Commission Rebates Legal in New York?
Yes. New York Real Property Law §442 expressly permits a licensed real estate broker to offer part of its commission to a buyer, as long as the buyer is not being paid to perform work that requires a real estate license.
The New York Department of State also confirms that brokers may offer cash or other incentives to consumers.
New York does not set a standard commission rate. Broker compensation is negotiable, which is why the buyer agreement should clearly explain the services, compensation and commission-return formula.
How BRN Calculates Your Commission Return
BRN returns the lesser of:
Half of the buyer-agent commission BRN actually receives.
1.5% of the purchase price.
Purchase price | Commission received by BRN | Illustrative BRN return |
|---|---|---|
$2,000,000 | 3.0% or $60,000 | $30,000 or 1.5% of the purchase price |
$3,000,000 | 2.5% or $75,000 | $37,500 or 1.25% of the purchase price |
$5,000,000 | 2.0% or $100,000 | $50,000 or 1.0% of the purchase price |
These examples assume that the purchase closes and BRN receives the stated commission. If the purchase does not close or BRN receives no commission, there is no commission to return.
BRN confirms the anticipated amount once the compensation information for the property is available.
A $57,000 rebate on a Greenwich Village co-op
BRN represented the buyers of 101 West 12th Street, apartment 18LM, a $3.8 million co-op in Greenwich Village. The buyer-agent commission was $114,000, and BRN returned $57,000 to the buyers—half the commission and 1.5% of the purchase price.
Your rebate depends on the commission BRN receives for your purchase. We confirm the expected amount for the property you are considering.
Estimate What BRN Could Return to You
Enter your expected purchase price to see the maximum amount BRN could return to you at closing.
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BRN returns half of the buyer-agent commission it receives, up to 1.5% of the purchase price. We confirm the exact transaction-specific amount early in the process.
Compare your potential return with estimated purchase expenses using our NYC closing cost calculator. Its commission assumption is adjustable; the return estimator above illustrates the maximum using a 3% commission.
Do buyers ever pay BRN a brokerage fee?
No. You never pay BRN a brokerage fee. If a seller offers a lower commission, we do not ask you to cover the difference. If a seller offers no commission, we do not charge you one. BRN handles compensation discussions with the seller.
This policy applies whether we help with a broader search or you come to us with an apartment already in mind. We confirm the seller-paid commission and expected rebate for each property.
Other brokerages may use agreements that make buyers responsible for some or all of a fee. When comparing agents, ask directly about that obligation. Your written agreement with BRN should clearly reflect our no-buyer-fee policy and commission-return formula.
How You Receive Your Commission Return
Most BRN buyers receive their commission return by check or wire right after closing, once BRN has received its commission.
If you prefer, you can apply the return toward eligible closing costs instead. We’ll work with your attorney and lender, where applicable, to arrange the credit.
For financed purchases, either option must meet your lender’s requirements, including any required disclosure.
Are Buyer Commission Rebates Taxable?
Generally, a buyer commission rebate is not treated as taxable income. It is usually treated as a reduction in the home’s purchase price.
In an IRS private letter ruling, the IRS concluded that a comparable buyer-agent rebate generally was not included in the buyer’s gross income because it represented a purchase-price adjustment.
Speak with your own tax adviser. BRN does not provide individual tax advice.
Full-Service Buyer Representation With Better Economics
BRN combines a meaningful commission return with full-service buyer representation. Buyers are not expected to perform the broker’s work in exchange for the return.
We help with:
Search strategy and property selection.
Property, building and comparable-sales analysis.
Offer strategy and negotiation.
Inspection, attorney diligence and financing coordination.
Co-op, condo and board-package processes where applicable.
Contract-to-closing management.
When you buy with BRN, we provide candid advice on pricing and negotiation throughout the purchase.
See how BRN represents New York City buyers.
What Should You Confirm Before Choosing a Buyer Brokerage?
Ask four straightforward questions:
Is the return formula clear and in writing? You should know exactly how the return will be calculated and when it will be delivered.
Who will personally represent you? Confirm who will analyze properties, develop the offer strategy and negotiate the purchase.
What services continue after an accepted offer? Representation should continue through diligence, appraisal, financing, co-op or condo review and closing.
When will the expected return be confirmed? The brokerage should provide a property-specific estimate before closing.
BRN answers these questions at the beginning of the relationship and revisits the economics for every property under consideration.
Frequently Asked Questions
Is there a standard buyer-agent commission in NYC?
No. New York law does not set a commission rate. Compensation is negotiable and can vary by agreement and property.
Can BRN’s commission return reduce the cash needed at closing?
Possibly. The answer depends on the loan and the lender’s requirements. Tell the lender about the expected return early and do not assume it can satisfy a required minimum contribution.
Does BRN’s model apply to co-ops, condos and houses?
Yes. BRN’s commission-return model applies to eligible purchases of co-ops, condos and houses in the markets BRN serves. The amount returned depends on the buyer-agent commission BRN receives for the individual property.
What if a seller offers no buyer-agent compensation?
You still do not pay BRN a brokerage fee. We handle compensation discussions with the seller. If the seller offers a lower commission, we do not ask you to cover the difference. Any rebate is based on the commission BRN actually receives.
Considering a Purchase in New York City?
BRN combines full-service buyer representation with a meaningful commission return. We return half of the buyer-agent commission we receive, capped at 1.5% of the purchase price, explain the expected amount early and coordinate the return at closing.
A BRN partner can give you a candid view of the market, explain how BRN would approach your purchase and estimate what BRN could return to you.
This article provides general information and does not constitute legal, tax, accounting, lending or investment advice. Commission arrangements, financing requirements and tax treatment vary by transaction and individual circumstances. Buyers should review their agreements and obtain advice from the appropriate qualified professionals.
John-Scott Johnson brings over 20 years of real estate experience spanning development and brokerage in New York City and the Hamptons. At BRN, he oversees market analysis and operational execution.
