Congratulations on getting this far.
Most New York City home buyers are not even aware of the possibility that they can receive a buyer’s agent commission rebate.
Not only are NYC home sellers punished by the real estate brokerage industry
with 6% in sales commissions on the highest home prices in the country,
NYC home buyers are also somehow collectively never made aware
by their traditional buyer’s agent representatives that commission rebates are legal.
In this Hauseit tutorial, we’ll explain some common dangers buyers associate with using a discount buyer’s agent and
how to properly get a buyer agent rebate in NYC without endangering your chances of closing a deal.
So, why are buyer agent rebates so rare in NYC despite being so lucrative for buyers?
In our opinion, buyer agent commission rebates in New York City are rare for four reasons:
Buyers care about closing a deal more than earning a commission rebate
Buyers are scared of the perception of working with a discount broker
Buyers think that discount brokers don’t have access to good inventory
Buyers are concerned about a discount broker’s quality of service
Let’s go into some more detail on each of these points:
The first reason that commission rebates are rare in NYC is that given the scarcity of inventory
most home buyers care much more about access and probability of closing versus
getting any sort of cash rebate incentive from their buyer’s agent.
So buyers choose their buyer’s agent based on who they think will give them the strongest representation
and likelihood of winning a deal, as opposed to who will give them a buyer agent rebate.
The second reason that broker commission rebates are rare in NYC for buyers is that they are worried
that they will be discriminated against by listing agents and therefore less likely to win a property.
This is a real cause for concern.
Traditional listing agents who look up the buyer agents’ profile and see that it’s someone
who primarily provides discount services and rebates will understandably have some negative bias towards that buyer agent.
Even though it is unethical and potentially illegal for the listing agent to discriminate against that buyer agent’s client bid,
it is not unheard of for listing agents to present bids to sellers in such a way
as to encourage accepting an offer that’s not made by a discount broker.
While this is outright illegal if the discount broker’s bid is higher,
it is much more of a gray zone when the bids are approximately equal and there are other considerations at play such as degree of financing,
financial status etc. that the traditional listing agent can use to his advantage.
It is not uncommon to hear stories of traditional listing brokers, who do represent the majority of real estate listings,
to covertly punish client bids made by discount buyers’ agents by either presenting their bid to the seller late
or in a negative light by claiming they are unprofessional, tough to work with, unreliable, etc.
As you can see, using a discount buyer agent providing a rebate can be a real headache for home buyers who do not do it right.
The third concern home buyers have against using a discount broker who publically offers buyer agent rebates in NYC
is the perception that discount agents don’t have the same access to properties a traditional agent does.
This concern is not completely true, as all agents from both small and large brokerages are obligated by their association
bylaws to immediately post all exclusive listings to all members of the broker community within 48 hours of signing a listing agreement.
However, there is a chance that discount buyer’s agents will not have access to the same amount of ‘pocket listings’ as a traditional agent would.
Given the negative reputational consequences of being a full time discount broker,
someone offering a buyer agent rebate in NYC will likely not make it to a traditional listing broker’s exclusive pocket-listing mailing list.
The last worry many buyers have about hiring a known discount broker to provide a buyer agent rebate in NYC
is that the agent won’t work as hard in negotiating on behalf of the buyer and closing the deal because he’s not paid as much as his peers.
This may be the case depending on whom you hire,
but there are many broker professionals who will work just as hard for 2% as someone working for 3%.
If you pick carefully and work with a pre-screened, seasoned buyer’s agent you won’t have an issue on this one.
So how does a home buyer in New York City secure a buyer agent rebate without sacrificing the quality of service,
lowering his or her odds of closing a deal or missing out on inventory?
The simple solution to securing a buyer agent rebate in NYC while avoiding these common problems is to work with a top,
traditional buyers’ agent who doesn’t engage in rebates full-time, whose image is 100% full-service,
and who discreetly provides you with a rebate at closing.
Hauseit has partnerships with many of the most seasoned real estate professionals in New York City
who are willing to provide you with the same full buyer’s agent service their normal clients would expect,
the commission rebate you deserve while maintaining their anonymity.
No one will know the difference except your pocketbook. It’ll be our little secret!
Contact Hauseit today to request your New York City buyer’s agent commission rebate