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Are Real Estate broker commission rebates legal in NewYork?

Yes. Sharing commissions with buyers and tenants is legal. The New York State Department of State has taken the position that New York real estate brokers may share their commission with a purchaser, seller, landlord or tenant. Commission rebates are legal in 40 states, including the State of New York. It is legal in these States both for an agent to offer and for a buyer or tenant to accept a commission rebate in conjunction with the purchase or rental of residential real estate. In 2015, Attorney General Eric T. Schneiderman issued an open letter confirming that real estate agents may rebate a portion of their commissions to clients and urged them to take advantage offer rebates to increase price competition and benefit consumers.

What is the commission structure for New York real estate?

The typical real estate commission in NYC is 6% of the property’s sale price. Brokers representing buyers or sellers of luxury properties often earn more money in one deal than the average worker earns in a year. On some listings, the commission may be 5%, if the seller negotiates a lower rate with his or her listing broker. Buyers do not pay commissions or fees to their brokers.

Isn't the fee paid by the seller anyway?

Yes, but the fee is included in the asking price.

If a buyer does not have a broker, do sellers reduce the priceto reflect the savings?

No. The seller’s broker will typically take the entire 5 to 6% commission, and buyers without representation are generally unable to reduce the purchase price and pay more than is necessary.

Is NestApple a real estate broker?

NestApple is a licensed real estate broker and a full-service experience. Clients receive the same top-tier professional service from and after the point at which a unit is targeted for bidding (including a pricing analysis, bidding advice, expert negotiation and so forth…) Use NestApple as your broker to buy or rent a home in New York and it will give up to 2% of the commission to you upon closing.

Why does NestApple offer commission rebates?

Technology and the internet have greatly diminished the role of full- service real estate agents by making it easy to search for homes. NestApple was created in the belief that buyers, sellers, tenants, and landlords can take advantage of that to have a better experience and save money when buying and selling real estate. We give commission rebates to buyers and tenants to encourage greater competition through lower transaction costs.

What's the catch?

There isn’t one! You get paid to buy a house. What has been too good to be true is that the “6%” has not been affected by the growth of mobile technology and the internet over the past 20 years, despite the explosion of real estate prices.

Where does my cash back rebate come from?

The seller has agreed to pay a 6% commission for listing the apartment with a broker. This is established in the listing agreement and it is customary in NYC. However, if you place an offer on your own (without using a broker), the 3% commission which would have been shared between your broker and the seller’s broker goes entirely to the seller’s agent, who will thus earn the full 6%.

Will the seller reduce the home price if I come without abroker?

No. If there is no broker representing the buyer, the listing agent will generally earn the entire 5 to 6% commission as per the agreement the seller signed.

How much will my NestApple cash back rebate be?

Up to 2%. In most cases, NestApple will receive 2.5 to 3% and will pay you back up to 2% of the purchase price. NestApple will work for 1%. In a 5% deal, NestApple will receive only 2.5% and still guarantees you a 1.5% rebate, keeping only 1.0% of the deal as a fee.

Let’s imagine you purchase a unit with 10% down and 90% financed: from our 3% commission, we will pay you 2%, so you receive 20% cash back on your down payment and you end up buying with only 8% down. Your 10x leverage just became 12.5x leverage.

I already work with a broker: can I switch and decide towork with NestApple instead?

Yes. Home buyers and tenants can change their agent at any time. Buyers are not required to sign an exclusivity agreement. The fact anoter broker showed you a property does not necessarily represent the “procuring cause” and a buyer can always change representation if the current broker is not a good fit.

Another broker showed me the home I want to buy: can I haveNestApple represent me?

Yes. You are allowed to change broker at any time (unless you signed an exclusive buyer agreement).

Can I meet the NestApple team in person before placing an offer?

Of course. We would love to meet with you. Please contact us to get started.

Can I look for properties and go to open houses on my own?

Yes. All you need to do is identify yourself as being represented by NestApple. When you go to an open house, indicate that NestApple is your broker.

What if there are no open houses coming up?

You can either have NestApple contact the listing agent to schedule a private showing, or you may do so directly and indicate that you are being represented by NestApple.

If I want my commission rebate, what do I have to do at anopen-house?

Indicate that you are being represented by NestApple. It’s not a problem if you’ve already attended an open house without representation or forgot to mention it. You can choose to have a broker at any stage of the process. It is legally required to allow buyers to hire a buyer’s agent after visiting a property.

Do I need my buyer's agent to show up for an apartmentshowing?

No. You are free to visit properties on your own.

I found a home I want but I’ve already contacted the listing agent: is it too late?

No. Contact us so we ensure that you will be eligible for a rebate upon closing. We never recommend negotiating with the listing agent unrepresented, because it would mean that the listing agent (representing the seller) is then a dual agent… and whose interests do you think he will represent better?

Should I tell the seller's agent I am getting a commission rebate?

No. It’s none of their business.

If the seller finds out about the rebate, will he be upset?

No. Seller has agreed in writing to pay the listing agent 5 to 6% to his home, regardless of the commission split.

Will I be discriminated against by listing agents because of this rebate?

No. Firstly, thanks to NestApple, listing brokers get their 3% fee and a deal done. Secondly, the seller and listing agent will never know you are receiving a rebate unless you disclose it. Lastly, it is illegal to discriminate against someone for this reason: the New York Attorney General stated that he will investigate any allegations of discrimination against brokers engaging in rebating.

Is my offer more likely to get accepted if I work with NestApple?

Yes. Sell side agents are incentivized to advise their clients to take the best offer. You can use that rebate in your bidding strategy. The 1.5 to 2% cash back may help you to make a better offer and compete more aggressively. For example, in a bidding war, you can use your 2% cash back to bid 1% higher than the maximum you are willing to pay in order to win the property and still get 1% extra.

Does the commission rebate mechanism also work for new constructions?

Yes. There aren’t any discounts available for individuals purchasing directly without an agent; therefore, the rebate is the best way for the buyer to save.

What if I need advice?

Our 24/7 expert support staff can answer any question you have. Aside from getting paid to work with NestApple, our experienced team offers you the added protection of having your own counsel at every step of the home buying process.

Can NestApple also sell my home?

Yes, at this time we are also disrupting the sales market by listing properties for as low as 1%

Is my commission rebate taxable?

Real estate commission rebates are generally NOT considered as taxable income as they are only considered as a “price adjustment”. Therefore, no 1099 form will be issued to you. In the future, when you sell your home, your cost basis will be lower. For instance, a $1million dollar apartment will generate a rebate of $20,000 on which the buyer does not pay any tax. Thus, the real cost of the home is $980,000.

If I start working with NestApple, will I have to pay any fees?

No. There are no fees for our service and nothing to spend out of pocket. The only person who gets paid is you. Our services are 100% free if you do not close. You do not pay NestApple anything upfront or ever. The seller pays the commission which we will split with you.

When do I receive my cash rebate?

Right away at the closing. We sometimes ask you to kindly wait 1 to 3 business days to wait to cash the check (depending on the amount) to wait for our own check to clear our bank account.

How does my offer get submitted to the sell-side agent?

We submit a written offer and call the listing agent to get feedback and follow up.

How do you handle the negotiation process?

NestApple will work closely with you to guide you through the negotiation process.

How do you handle the closing process (lawyer, inspectors, mortgage brokers and so forth…)?

We work with our clients at each step of the process and are able to refer lawyers, inspectors and appraisers. It is illegal for real estate brokers, or mortgage and real estate attorneys to pay each other referrals: NestApple will only make recommendations because we worked with those people and think they are the best at what they do.