A buyer rebate does not change nor diminish a real estate brokerage’s services. One of the many duties that brokers perform is to schedule and accompany buyers to see the homes that are listed for sale. After seeing a home together, it helps to compare notes between buyers and buyer Read more
The rebate agent is being paid the same way as any real estate agent in a real estate transaction. The seller typically puts up 5-6 percent of the sales price to be split between the listing agent and the buyers agent (rebate agent). Depending on the commission split percentage, the Read more
Typically it is best that we accompany you to a new construction listing and register you as a client in the sales office. A buyer rebate may be available if the new construction’s builder has incentive packages for buyers and buyer agents. If your agent is not with you on Read more
A home seller always had the opportunity to negotiate the commission percentages in the listing agreement. Home buyer rebate advocates argued that buyers should have the right to negotiate commissions as the sellers are able to do. This results in the form of a buyer rebate from the buyer broker.
US Department of Justice – Economic Analysis Group Discussion Paper Home buyers primarily desire to find the house that best matches their preferences at the lowest net sales price possible. As a result, a selling agent might attempt to attract more customers by offering home buyers a higher rebate than Read more
BUYER REBATES ARE NOT CLASSIFIED AS INCOME BY THE IRS A buyer rebate is not classified as income, and a Form-1099 will not be issued. A similar example is the rebates you receive on a cashback credit card. The points and cash rebates that you redeem on these credit cards Read more
Lenders are informed of buyer rebates to comply with federal law. Lenders do not allow for money to be given to the buyer after the closing. Imagine: You are lending $80 dollars to the buyer with a $20 dollar down payment to buy a $100 home. How would you feel Read more
The average real estate transaction in New York City is relatively large and can amount to millions of dollars. Collecting 1% of the total purchase price as commission is a reasonable fee on these transactions. At the same time, the difference of the broker commission split after collecting our 1% Read more
Technology has enabled brokers to complete market analysis on a property in a few clicks. What used to take hours of work looking through city records manually is now done in a few minutes through websites such as StreetEasy. Comparable reports contain sales data for: Active Listings In-contract listings Unavailable Read more
NY REAL ESTATE BUYER REBATES ARE LEGAL Real estate broker commission rebates are legal in 40 states, including New York state. NY Attorney General Eric T. Schneiderman issued a public letter confirming that commission rebates are legal. New Yorkers are encouraged to take advantage of lower commissions when buying a home. Changes Read more