Yes. To begin with, sharing commissions with buyers and tenants is legal. In fact, 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. As a matter of fact, commission rebates are legal in 40 states, including the State of New York. Indeed, it is legal 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. For reference, 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 of rebates to increase price competition and benefit consumers.
2. What is the commission structure in NY for Real Estate deals?
For reference, the typical real estate commission in NYC is 6% of the property’s sale price. However, on some listings, the commission could be 5% if the seller negotiates a lower rate with his listing broker. In other words, buyers do not pay commissions or fees to their brokers. Then, the commission is split between the brokers: 3% for each side.
3. Is NestApple a licensed real estate broker?
Absolutely. In fact, NestApple operates as a licensed real estate broker and therefore offers a full-service experience. As a result, NestApple clients receive the same top-tier professional service. In short, we work together from the moment you identify a property you like (including pricing analysis, bidding advice, expert negotiation, and so forth) and stay with you until the closing table.
4. Why does NestApple offer rebates?
Firstly, technology and the internet have greatly diminished the role of full-service real estate agents by making it easy to search for homes. Therefore, 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. As a result, we give commission rebates to buyers and tenants to encourage greater competition through lower transaction costs.
6. What’s the catch?
There isn’t one! In fact, you get paid by NrestApple in order to buy a house. As a matter of fact, this “6%” fee 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.
7. Where does my cash back rebate come from?
To start, the seller has agreed to pay a 6% commission for listing the apartment with a broker. In fact, that is established in the listing agreement in NYC, and it is customary in NYC. However, if you place an offer on your own (without using a broker), the 6% commission goes entirely to the seller’s agent, who will earn the full 6%.