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.
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.
Yes, but the fee is included in the asking price.
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.
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.
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.
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.
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%.
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.
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.
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.
Yes. You are allowed to change broker at any time (unless you signed an exclusive buyer agreement).
Of course. We would love to meet with you. Please contact us to get started.
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.
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.
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.
No. You are free to visit properties on your own.
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?
No. It’s none of their business.
No. Seller has agreed in writing to pay the listing agent 5 to 6% to his home, regardless of the commission split.
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.
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.
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.
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.
Yes, at this time we are also disrupting the sales market by listing properties for as low as 1%
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.
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.
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.
We submit a written offer and call the listing agent to get feedback and follow up.
NestApple will work closely with you to guide you through the negotiation process.
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.