How (and how much) does a buyer’s broker get paid?
You may have heard that a buyer’s broker is “free” to the buyer. That’s true in a narrow sense, but ultimately it’s your money that’s paying their commission.
In New York, a person who sells their home agrees to pay the buying and selling brokers a total commission between 5% and 6% of the home’s final purchase price. That commission is split evenly between the buying and selling brokers, who each receive 2.5% or 3% of the purchase price. That means that a broker representing a buyer on a sale of a $1.5 million apartment will receive a commission of $37,500 to $45,000 — not bad!
This means that your “free” buyer’s agent is cashing a check for tens of thousands of dollars with the money that you paid the buyer.
What is a Cash Back Commission Rebate?
Every time a New York broker sells their client a home, that broker collects a commission of 2.5% to 3% of the home’s purchase price. Your broker can choose to rebate some of their commission back to you.
Commission rebates became legal in New York a few years ago and the IRS has said that they’re completely tax free for the buyer.
Why don’t more New York brokers offer a Cash Back Commission Rebate?
That’s a great question!
New York brokers earn a lot of money — $37,500 to $45,000 for selling a $1.5 million apartment — and more and more smart buyers are working with brokers who rebate a portion of their commission back to them. Cash rebates effectively lower the price of your new home.
At BRN, we cut our clients a check for up to 2% of the home’s purchase price. No strings attached.
Can I negotiate with my current real estate agent to get a rebate?
You should ask! If you’re already working with an agent, talk to your agent about whether they would offer you a cash back rebate. It’s completely up to your agent whether they will offer you a rebate.
Keep in mind that when you close on your purchase, your agent will receive a commission of 2.5% to 3% of your new home’s purchase price. That usually adds up to a lot of money in the most expensive real estate market in the country!
How can I get the biggest Cash Back Commission Rebate in New York?
Reach out to us! BRN offers the biggest cash back commission rebate in New York. We'll rebate you up to 2% of your new home's purchase price. No strings attached.
For a $1.5 million apartment purchase, we’d cut you a check for up to $30,000 at closing. Click here to learn more about our cash back rebate.