How are you able to offer so much cash back to buyers?
In New York, the seller of a home typically pays the buying and selling brokers each between 2.5% and 3% of the home's purchase price. That means a broker representing a buyer who's purchasing a $1.5 million apartment will typically collect a commission between $37,500 and $45,000 (2.5% or 3% of the purchase price).
Unlike traditional brokers, we rebate up to 2% of the home purchase price back to our clients. With the high price of New York real estate, that usually means we rebate our clients tens of thousands of dollars in cash at closing. You can learn more about the BRN Rebate
We're able to rebate so much cash back to our clients because we're lean and efficient, and we focus on the work that best leverages our expertise -- i.e., determining property valuation, developing an offer strategy, and negotiation.
2% cash back sounds great, but is it too good to be true?
We've created a smarter way to buy real estate in New York. Because we work more efficiently than traditional brokerages, we're able to rebate the savings to our clients. We give up to
2% of home purchase price cash back -- no strings attached.
In New York, buyers' brokers typically earn a commission between 2.5% and 3% of the property's purchase price. That means when a buyer's broker sells a $1.5 million apartment, that broker will typically collect a commission between $37,500 and $45,000. We think that's too much, so we created BRN to provide a better value to our clients.
Can't I just buy without a broker and keep the entire commission myself?
No. Unfortunately, a buyer without a broker is unable to collect any commission.
Before sellers list their property for sale, they sign a listing agreement which obligates them to pay a set brokerage commission, typically 5% or 6% of the purchase price to be split equally between the buying and selling brokers who work on the deal. So if you're not a licensed broker, the seller has no obligation to -- and won't -- pay you any commission.
That means if a buyer comes to the deal without a broker, only the selling broker will receive a commission -- and the buyer loses out on the opportunity to save a lot of money by receiving a commission rebate.
When and how do I receive my rebate?
We'll cut you a check for your rebate at the closing table. It's that simple.
Is the rebate taxable?
According to the IRS, commission rebates are not taxable and are instead considered an adjustment to the home's purchase price.
The IRS stated that "a payment or credit at closing from [a real estate broker] represents an adjustment to the purchase price of the home and generally is not includible in a purchaser's gross income."
That said, we encourage all of our clients to check with their tax advisors as individual circumstances may vary.