Digs Realty and the Broker Commission Rebate in New York
What is the typical commission structure of residential real estate deals in New York City?
In New York City residential real estate deals, the seller typically pays 6% of the purchase price to his or her broker. This is split with the buyer’s broker if the buyer has a broker. On larger transactions, the commission can be 5%. Buyers do not pay commissions or fees to their brokers.
If a buyer does not have a broker, do sellers typically reduce the purchase price to reflect the savings of not having to pay a commission to the buyer’s broker?
If a buyer does not have a broker, the seller’s broker will typically take the entire commission. Buyers without representation are generally unable to reduce the purchase price. This is one area where Digs Realty can really help clients achieve their goals. We can be brought in at any time, even after the desired unit is targeted, help buyers get their offer accepted, and return to them the value that they created in the transaction in the form of a commission rebate, providing buyers with significant cash back after closing.
As a buyer, if I engage Digs Realty, will I have to pay any broker fees?
No. The commission paid by the seller to its broker will be split with Digs Realty at closing. A buyer working with Digs Realty will never have to come out of pocket to pay us. In fact, once the transaction closes, we will write YOU a check!
As a buyer, I have been doing my own searches, visiting open houses and making offers on my own for a while. Why should I now hire Digs Realty?
Digs provides high-level representation and consultation to its buyers on every transaction. We bring to the table deep market knowledge, years of industry experience as well as a comprehensive understanding of all aspects of the deal. We add significant value, even to our most sophisticated clients, and will shepherd your transaction over the finish line. On top of all that, we will write you a check for up to 2% of your purchase price after closing.