Is there a minimum buyer agent commission amount in New York City?
We will demystify the topic of buyer broker commissions in the following video.
I’m Nick from Hauseit, New York City’s largest for sale by owner and buyer closing
credit company.
Check us out at www.hauseit.com to learn about ways to save if you’re buying and selling
real estate in the great city of New York.
Our website URL is below.
Many buyers who are receiving a broker commission rebate will often wonder whether
or not there is a minimum buyer agent commission amount that must be paid to the buyer’s
broker at closing.
The obvious reason for asking these question is because many buyers who are receiving a
buyers agent commission rebate are in line to receive a considerable discount on their
purchase at closing.
In many cases, such as through the Hauseit Buyer Closing Credit, the purchaser may save
up to 2% or possibly even more on the purchase price through this form of additional incentive.
Therefore, the specifics of what buyer agent commission is being offered is crucial in coming up with
an estimate as to how much money they might be able to save on the purchase.
The most common buyer agent commission amount in New York City is anywhere from 2.5% to 3%.
However it is possible that a buyer agent commission figure will be significantly lower
especially if you’re out in Queens or somewhere very far away from Manhattan.
If the listing agent on a property is member of the Real Estate Board of New York, they
are obligated to split a minimum of 50% of a total commission of the buyer’s agent.
However, this REBNY regulation does not stipulate minimum total commission amount to be paid
by the seller.
So ultimately, the commission amount being paid to the buyer’s agent does depend on
what has been negotiated between a seller and the listing agent contractually thru the
listing agreement.
Is it possible as a buyer to find out what the buyer commission amount might be?
The answer yes, well sort of.
As a buyer, you yourself cannot directly access the commission figures on the listing but
your buyer’s agent does have the ability to confirm what is being offered on a listing
by checking in the respective database such as the RLS which is the defacto MLS equivalent
here in New York City.
If the listing agent is not a member of the MLS, the commission amount will not be accessible
to anybody, and your buyer’s agent will have to contact the listing agent and ask them
to confirm the commission amount in writing.
As a seller, how much buyer agent commission you should offer?
Largely depends on the property that you’re selling.
Keep in mind that the buyer agent commission amount is really designed to drive traffic
represented buyers to your listing.
If you have one of the only corner pre-war apartments in Park Slope with low monthlies and there
are no other units like yours on the market, there’s very little for you to offer a very
high buyer’s agent commission amount.
Conversely, if you’re selling a generic apartment in a large building in Mid Town,
you may have dozens if not hundreds of other apartments competing for the attention of
perspective buyers and in this instance, offering are very high, very competitive buyer agent
commission amount can strategically increase your chances of selling your apartment for
the highest price.
We hope you enjoy this video, I’m Nick at Hauseit.
Leave us a comment below the video.
If you have any questions or ideas for future content and please do check us out at www.hauseit.com.
If you’re interested in buying or selling real estate in New York City and save a bit
of money in reducing your buyer or seller closing cost.
Have a great day!