If you’ve been searching for ways to lower the cost of buying a home in New York City, you’ve likely come across the term “commission rebate.” Commission rebates are a powerful—yet often overlooked—strategy that can put thousands of dollars back in your pocket at closing. In this guide, we’ll explain exactly how NYC commission rebates work, why they’re legal, and how BRN Partners helps you keep up to 1.5% of the purchase price in your bank account.
1. What Is a Commission Rebate in NYC Real Estate?
A commission rebate (sometimes called a buyer rebate) is when your buyer’s agent refunds you part of the commission they receive for representing you. In a typical NYC real estate deal, the seller pays a total commission to the listing brokerage, which is then split between the seller’s agent and the buyer’s agent. By offering a rebate, the buyer’s agent shares a portion of their commission with you at closing.
Is It Legal?
Absolutely. New York State specifically allows real estate agents to provide commission rebates. Many buyers don’t realize this is possible, assuming all commissions are fixed. In reality, a buyer’s agent can choose to share part of their commission to help reduce your NYC home purchase costs.
2. How Do Commission Rebates Work?
1. Buyer’s Agent Commission
When you purchase a property in NYC, the seller covers the total real estate commission. This fee gets split between the listing agent (representing the seller) and the buyer’s agent (representing you).
2. Cash Back at Closing
If your agent offers a commission rebate—like BRN Partners does—they’ll give you a percentage of their split. This usually appears in your closing statement or via a post-closing check, depending on the lender and legal guidelines.
3. You Save Money
Instead of paying every penny of your closing costs out-of-pocket, the rebate effectively lowers how much you spend on attorney fees, mortgage recording taxes, co-op application fees, or even new furniture.
3. Why Commission Rebates Matter in the NYC Market
High Prices, High Closing Costs
NYC real estate is known for steep home prices and hefty closing expenses—like mortgage taxes, title insurance, and the mansion tax for properties over $1 million. A commission rebate gives you direct financial relief at a time when you’re already juggling multiple costs.
Competitive Homebuying Environment
From co-ops in Manhattan to townhouses in Brooklyn, NYC can be a battlefield for buyers. A slight boost to your budget can make your offer more appealing—or simply ease the pressure once you’ve secured the property.
Frequently Overlooked Savings
Because not every brokerage offers rebates, many buyers never hear about them. By using a buyer rebate, you can save thousands that would otherwise get absorbed by closing fees.
4. How Much Can You Save with BRN Partners?
At BRN Partners, we offer half of our commission back to our clients, which can be up to 1.5% of the purchase price. Below is an example to put those savings into perspective:
• Purchase Price: $1,000,000 (a typical NYC condo or co-op)
• Total Commission: 6% (paid by the seller) = $60,000
• Buyer’s Agent Share: 3% = $30,000
• Your Commission Rebate: Half of our share, up to 1.5% of the purchase price = up to $15,000 back to you
Imagine having an extra $15,000 to cover renovations, offset mortgage expenses, or pad your savings account. That’s the power of a NYC commission rebate.
5. How BRN Partners Makes Buying in NYC Easier
We’re not just about saving you money (though that’s a big perk!). BRN Partners is dedicated to providing a top-notch buying experience every step of the way:
• Local NYC Expertise
Our agents understand co-op boards, condo associations, and the distinct characteristics of each neighborhood—from classic brownstones in Brooklyn to modern high-rises in Midtown.
• Transparent Rebates
We break down exactly how our half-commission rebate works from the get-go, so there are no surprises.
• Full-Service Approach
Expect thorough support—from property showings and price negotiations to co-op application advice and final walkthroughs.
• Stress-Free Process
NYC real estate can be overwhelming, especially for first-timers. We streamline the paperwork, time the negotiations, and keep you in the loop so you can focus on finding your dream home.
• Long-Term Relationship
We aim to be your trusted real estate partner for life. It’s that simple.
6. Common Questions About NYC Commission Rebates
Are commission rebates taxable?
In most situations, a rebate is considered an adjustment to the purchase price, not income—so it usually isn’t taxed. Still, it’s wise to check with a tax professional about your specific circumstances.
Can I use my rebate to reduce my down payment?
It depends on your mortgage lender. Some lenders allow you to apply the rebate directly at closing, while others have restrictions. Talk to your lender early in the process to make sure everyone is on the same page.
Does this affect what the seller gets paid?
No. The total commission paid by the seller remains the same. Your rebate comes from your buyer’s agent’s portion of the commission, so it doesn’t impact the seller’s net proceeds.
7. Reducing NYC Closing Costs with a Rebate
Closing costs in New York City can include:
• Mortgage Recording Tax (for condos/townhouses)
• Title Insurance
• Attorney Fees
• Mansion Tax (for homes above $1 million)
• Co-op Board Fees (if applicable)
By utilizing a commission rebate, you can offset some of these expenses. Instead of paying, for example, $20,000 in closing costs, you might pay $10,000–$15,000—depending on your rebate and final purchase price.
8. How to Get a Commission Rebate from BRN Partners
1. Reach Out
Schedule a consultation to discuss your plans—budget, neighborhood preferences, property type—and learn how our 1.5% commission rebate would apply to your situation.
2. Start House Hunting
We’ll show you the best listings that match your criteria, guide you through open houses, and help you craft a compelling offer when you find “the one.”
3. Close on the Property
Once your sale is finalized, BRN Partners credits you the rebate amount (subject to lender and legal requirements). This reduces your net cost of buying a home in NYC.
4. Enjoy Your Extra Funds
You’ll have more money for renovations, furniture, or simply building up a rainy-day fund—win, win.
9. Ready to Save Thousands on Your NYC Home Purchase?
It’s no secret that buying real estate in New York City can be pricey. But thanks to commission rebates, you don’t have to pay more than necessary. With BRN Partners, you’ll benefit from:
• A generous rebate policy
• Expert guidance on co-ops, condos, and brownstones
• A smooth, step-by-step process that puts you in the driver’s seat
Take the Next Step
• Contact Us: Let’s talk about how much you could save through our half-commission rebate.
• Schedule Property Tours: Our local expertise ensures you see the listings that fit your budget, lifestyle, and must-haves.
• Reap the Rewards: Enjoy up to 1.5% of your home’s purchase price back in your pocket at closing.
Don’t let steep prices and high closing costs keep you from owning a slice of the Big Apple. Reach out to BRN Partners and discover why commission rebates are one of the smartest moves NYC homebuyers can make.