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What Are Closing Costs in NYC?

Closing costs in NYC are between 1.5% – 5% for buyers and 8-10% for sellers. Your closing cost bill is based on a number of factors including property type (condo vs. co-op), purchase price, amount borrowed and whether the property is new construction (sponsor sale).

You can save money when buying and selling with Hauseit, NYC’s largest FSBO (For Sale by Owner) and Buyer Closing Credit Company. Sellers can save up to 6% in commissions by listing Agent Assisted FSBO or by working with a full-service agent for just 1%Buyers can save $20,000 or more and reduce their closing costs by requesting a Hauseit Buyer Closing Credit.

Save up to 6% When Selling in NYC

Have time to show your home yourself? Consider our self managed, For Sale By Owner listing option that gives you the same marketing exposure as if you’d paid 6% commission to a traditional listing broker.

Figure out what your buyer closing costs are with our interactive Buyer Closing Cost Calculator for NYC. Selling? Estimate your seller closing costs with our handy Seller Closing Cost Estimator for NYC.

Closing Costs in NYC (Click to Learn More):

What are Closing Costs in NYC for Sellers?

Seller closing costs in NYC are between 8 – 10% of the sale price. Your seller closing costs will also vary depending on whether you are selling a condo or a co-op apartment.

A typical NYC seller of a $1.87 million apartment can expect to pay between $153,178 (condo) and $181,728 (co-op) in closing costs! That is some serious money. Fortunately, the largest seller closing costs (broker commissions) is the one which you can most easily reduce or eliminate. Sellers can save up to 6% in commission by listing agent-assisted FSBO or by working with a full-service agent for just 1%.

Don't Have Time to Sell FSBO? List Full Service for Just 1%

Save time and money by listing with a full-service, REBNY member broker in NYC for just 1% commission.

Closing Costs NYC - For Sellers

Closing Costs NYC – For Condo Sellers

$153,178 (8.19% of sale price)

Based on 2015 NYC average sale price of $1.87 million

NYC Closing Costs for Condo Sellers (based on $1.87m sale price):

  • NYC Broker Commission (6%) – $112,200
  • NYC Real Property Transfer Tax (RPTT) & Filing Fee (1-1.425%) – $26,748
  • NY State Transfer Tax (0.4%) – $7,480
  • Seller’s Attorney – $2,500
  • Move out Deposit & Fees – $2,000
  • Managing Agent Fee – $1,000
  • Bank Loan Satisfaction Fee – $500
  • Real Estate Tax / Common Charge Adjustment – $500
  • UCC-3 Filing Fee – $100
  • NYS Equalization Fee – $75
  • Residential Deed Transfer Fee – $75

Closing Costs NYC – For Co-Op Sellers

$181,728 (9.72% of sale price)

Based on 2015 NYC average sale price of $1.87 million

NYC Closing Costs for Coop Sellers (based on $1.87m sale price):

  • NYC Broker Commission (6%) – $112,200
  • NYC Real Property Transfer Tax (RPTT) & Filing Fee (1-1.425%) – $26,748
  • NY State Transfer Tax (0.4%) – $7,480
  • Seller’s Attorney – $2,500
  • Move out Deposit & Fees – $2,000
  • Managing Agent Fee – $1,000
  • Bank Loan Satisfaction Fee – $500
  • Real Estate Tax / Common Charge Adjustment – $500
  • UCC-3 Filing Fee – $100
  • NYS Equalization Fee – $75
  • Residential Deed Transfer Fee – $75
  • Co op Flip Tax (~1.5%) – $28,050
  • Co op Attorney – $500
  • Co op Stock Transfer Tax – $50

NYC Seller Closing Cost #1: NYC Broker Commission (6%) - $112,200

The highest closing costs for sellers in NYC is the typical 6% real estate commission. Despite advances in technology, broker commissions in NYC have remained stubbornly fixed around 6%. To make matters worse, it’s still very difficult for a seller to negotiate commissions with a prospective listing agent.

In the era before the internet and smartphones, the 6% real estate commission was somewhat justifiable. Listing agents in the 80s,90s and early 2000s did not have the ability to click a button and syndicate your listing to dozens of real estate websites all at once. Back then, agents had to spend large amounts of money and time on newspaper advertising and other word of mouth marketing methods. Fast forward to today, and listing agents can easily syndicate your listing on the internet to broker databases and property search websites like the REBNY RLS, New York Times and StreetEasy in a matter of minutes. Despite all these advances in technology, listing agents in NYC are still stubbornly refusing to go below 6% commission.

Save up to 6% in commission when selling in NYC

Save up to 6% in NYC broker commission by listing For Sale by Owner in NYC. Seller closing costs in NYC are high enough, so why add another 6% to your bill by hiring a full-service listing agent?

How It Works

1. Submit your listing details online
2. Select a NYC Flat-Fee MLS (RLS) listing package
3.  Conduct open houses and negotiate with buyers
4. Accept an offer and close your sale

Join hundreds of fellow New Yorkers who have sold on their own with the help of Hauseit’s Flat Fee RLS Listing Service. Not convinced? Google ‘Hauseit Reviews’ to see what customers are saying about us.

Sell FSBO (For Sale by Owner) in NYC

Have time to show your home yourself? Consider our self managed, For Sale By Owner listing option that gives you the same marketing exposure as if you’d paid 6% commission to a traditional listing broker.

The formula for selling FSBO in NYC is simple and it’s something most NYC listing agents don’t want you to know. Selling condop, a condo or a co-op in ManhattanBrooklyn, Queens or the Bronx, is as simple as having: Flat Fee MLS Listing + Professional Photography + Realistic Listing Price + Preparation

Listing your home on RLS (REBNY Listing Service) is the only effective way to market your property to the 75% of buyers who are represented by buyer’s agents. RLS is a broker-only database in NYC which displays the available listing inventory and buyer agent commission information in New York City.

Because every listing in RLS has a contractually listed and guaranteed commission, buyer agents typically only show RLS listings to their buyers. Furthermore, most buyer agents in NYC search for listings using software which feeds directly from RLS. By not listing in RLS, your listing will either be missed or ignored by the vast majority of the city’s 20,000 buyer agents. Failure to list on RLS is one of the most common reasons why traditional NYC FSBO sellers fail.

Traditionally, the only way to list your home on RLS was to pay 6% in commission to a full-service, REBNY member listing agent who had access to RLS. As a seller in NYC, you can list on RLS and save up to six percent in commission through Hauseit’s Flat Fee RLS Listing Service. Listing in RLS offers your home full exposure to over 20,000 REBNY member buyer agents in NYC.

What if your buyer is unrepresented? Listing through Hauseit’s Flat Fee RLS Listing Service means that you won’t pay any percentage commission if your buyer is unrepresented. You’d only owe a buyer agent commission if you knowingly accept an offer from a buyer with a buyer’s broker.

One of the most common shortcuts FSBO sellers take in NYC is skimping on professional photography. Making a condo or co-op marketable and attractive to buyers isn’t rocket science. When you put your home on the market, it’s going to be competing with traditional listings which almost always have stunning professional photographs.

Competing against full-service listings with professional photography means that your listing’s photos must be on an equal playing field. Given the small cost of professional photography, going the route of professional photography is a no-brainer. Maximizing your chances of saving six percent in commission also necessitates the investment in excellent photos and a professional floor plan.

Can I just change my photos after I’ve listed? Listing traffic and momentum is the highest in the first few weeks after you list, so it’s important that you have professional photos from day one. Waiting a few weeks and then replacing your photos is a poor strategy because you will have missed the opportunity to showcase professional photos to the largest pool of potential buyers and buyer brokers earlier on in the sale process.

Being a smart and successful FSBO seller is all about being realistic and honest with yourself about your listing’s pricing from day one. Going to market with the wrong listing price could literally determine your success or failure before you’ve even started showing your property.

Sellers who overprice and then make prolonged and inadequate reductions over the course of many months almost always lose confidence and fail to sell. FSBO sellers who fail to sell due to unrealistic pricing typically end up hiring a 6% listing agent who persuades them to re-list with rock bottom pricing. This makes for an easy payday for the lucky listing agent who benefits at the expense of the seller whose original pricing was unrealistic.

What if I need to make a certain profit on my sale? Having an arbitrary profit target in mind which requires an above market sale price is unrealistic and dangerous. As a base case, you should never assume that someone will pay above market value for your property. Reducing your price later on won’t allow you to take advantage of the early traffic boost and momentum that you receive in the first few weeks after listing.

Before listing, we encourage you to prepare a comparative market analysis. You may view example CMAs in Hauseit’s forum. If you are interested in a professional opinion on your pricing, you may consider professional broker consulting or listing through Hauseit’s 1% Full-Service Listing Option.

Your only realistic chance of succeeding as a FSBO seller in NYC is if you’ve done your homework on how the sale process works. Doing your homework before listing is an essential component in setting expectations, building your confidence as a seller and knowing how to navigate the sale process.

Before listing, we encourage you to thoroughly review the resources below. If you are selling a condo and co-op, we suggest you contact your managing agent and request all the building’s sale documentation such as the Purchase Application, Offering Plan and two most recent years of financials. You should also hire an attorney and educate yourself on each step of the sale process.

Read our NYC FSBO Seller Resources:

A Traditional Full Service Listing for Just 1% Commission

Save thousands by listing with a full service, highly rated REBNY Member Firm in NYC for just 1% commission. You shouldn’t have to pay 6% simply because you don’t have the time or energy to sell FSBO in NYC.

So what’s included? Our highly experienced partner listing agents will perform all of the industry standard listing agent duties you’d expect from a full service listing:

  1. Professional Home Pricing Analysis and CMA

  2. Professional Photography and Floor Plans

  3. Engage other agents on the REBNY RLS and the MLS

  4. Full marketing on dozens of popular property search sites

  5. Custom open house experiences and all private showings

  6. Offer Screening, negotiation and broker consulting

  7. Board package application and closing assistance

Don't Have Time to Sell Your Home For Sale by Owner?

A home sale is a major life decision. Work with a real broker. We’ve partnered up with the most experienced, brand name brokerages in New York so you can work with the best for just 1% commission.

NYC Seller Closing Cost #2: Real Property Transfer Tax (1 - 1.425%) - $26,748

New York City levies a tax on the sales, grants, assignments, transfers or surrenders of real property in NYC. The NYC Real Property Transfer Tax (RPTT) is a tax of 1%-1.425% on residential real estate transactions. The NYC Transfer Tax is typically paid by the seller along with a RPTT filing fee of $100.

  • 1% of the sale price: For home values below $500,000

  • 1.425% of the sale price: For home values above $500,000

Please keep in mind that if you are selling 2+ un-attached units to your buyer at the same time, you are required to pay the commercial RPTT rates:

  • 1.425% of the sale price: For sale values below $500,000

  • 1.625% of the sale price: For sale values above $500,000

NYC Seller Closing Cost #3: NY State Transfer Tax (0.4%) - $7,480

New York State also charges home sellers a transfer tax of 0.4% of the sale price. The full NY State Transfer Tax is due and payable along with form TP-584 no later than the 15th day after the delivery of documents.

NYC Seller Closing Cost #4: Seller's Attorney - $2,500

It’s highly recommended that NYC sellers obtain top notch legal representation when completing the home sale process. Given the various legal risks and documentation requirements required of the seller, it’s a no brainer to hire an attorney so that you may sleep easy at night. You may be able to find a lawyer who charges less than one thousand dollars, however we advise you to proceed with caution.

Having questionable, low-quality representation could cost you thousands of dollars down the road. We are in touch with fairly priced and proven, highly-experienced real estate attorneys if you need an introduction.

Furthermore, many of our attorney partners have agreed to friends and family discounts and additional help (i.e. board package preparation) for Hauseit customers. It’s important to have an attorney lined up ideally before you submit an offer. This way your buyer agent can credibly say that you are ready to move fast with an attorney on standby who can review the purchase contract ASAP.  Contact us today for an introduction to a local expert!

Closing Costs in NYC can be substantial for both buyers and sellers. Detailed closing costs guide for New York City property purchasers and home sellers.

NYC Seller Closing Cost #5: Move Out Deposit & Fees - $2,000

The specific amount of move out related deposits and fees varies by building. A general rule of thumb is to budget around $1,000 for a refundable move-out deposit and another $1,000 in potential non-refundable move out and closing related fees levied by your condo or co-op.

NYC Seller Closing Cost #6: Miscellaneous Fees - $2,250

As a NYC seller, you will also face another random assortment of fees to complement the more substantial fees and taxes described above. The additional NYC seller closing costs can include:

  • $1,000 – Managing Agent Fee

  • $500 – Payoff Bank Attorney / Payoff Bank Fees / Loan Satisfaction Fee, which is levied by your mortgage provider upon paying down the remaining loan amount

  • $500 – Common Charge & Real Estate Tax Adjustment, which is the seller’s reimbursement of the purchaser for the percentage of common charge fees and/or real estate taxes which the seller is liable for during the transfer

  • $100 – UCC-3 Filing Fee

  • $75 – New York State Equalization Fee

  • $75 – Residential Deed Transfer Fee (or non-deed co-op transfer fee)

NYC Seller Closing Cost #7: Co-op Seller Fees - $28,600

NYC Co-Op Seller Additional Closing Cost #1: $28,050 - Flip Tax

The dreaded NYC co-op flip tax is a non-deductible transfer fee payable to the co-op upon the sale of a unit within the building. For our example above, we will assume a standard flip tax rate of 1.5% of the sale price. Flip taxes come in many shapes and forms, however they generally will appear in one of the following formats:

  • Flat fee flip tax

  • Percentage of your sale price

  • Percentage of the net profit earned on your sale

  • A fixed fee which varies depending on your length of ownership

  • A per share amount, which is based upon the per share flip tix figure multiplied by the number of co-op shares assigned to your unit

  • Combined method, which incorporates one more of the above approaches

Co-op flip taxes are legally permitted provided that the flip tax details are present in the co-op’s proprietary lease or if the flip tax has been added as an amendment to the lease through the approval of more than 67% (2/3rds) of shareholders of the co-op.

Does it seem fair that sellers of co-ops must give away a portion of their profits to the co-op? We don’t think so. However there is a historical reason why most if not all co-ops in NYC levy a fee to their departing residences. During the rental conversion boom in the 1970s and 1980s, sponsors were faced with the challenge of poorly maintained buildings as well as long term rent controlled residents who could not afford to purchase a unit in the building. As a result, the conversion sponsor offered many of their rent controlled tenants the ability to purchase units in the building at substantially below-market prices.

As the converted rental tenants often made substantial profits during a sale, the co-ops decided to levy a flip tax on the beneficiaries of these profitable sales in order to fund the much needed improvements to the building for the long-term, committed residents. The original conception of the flip tax was as a temporary tax on quick flip sellers to fund renovations, however co-ops soon began making them permanent once they realized the size of the recurring revenues they could generate for the building.

Most of the time, the flip tax is paid by sellers. However, depending on building rules and the current state of the market (buyers’ or sellers’ market), the buyer may opt to pay the flip tax instead of the seller.

NYC Co-Op Seller Additional Closing Cost #2: $550 - Random Extra Fees

  • $500 – Co-op Attorney Fee

  • $50 – New York State Stock Transfer Tax, which consists of a tax levied by NYS of $0.05 per unit of stock being sold. While the number of co-op shares owned by sellers can vary widely, we’ve estimated $50 all in for the New York State stock transfer tax associated with our hypothetical NYC home sale

Buying in NYC? Save $20K or More with a Hauseit Buyer Closing Credit

Save thousands with a discreet buyer closing incentive provided by New York’s most experienced, brand name real estate buyer agents. Save money without risking your deal!

What are Closing Costs in NYC for Buyers?

Buyer closing costs in NYC are substantial and range from 1.5% – 5% of the purchase price. As a buyer, you can save $20,000 or more and reduce your closing costs by requesting a Hauseit Buyer Closing Credit.

Requesting a Hauseit Buyer Closing Credit is a legal and non-taxable way to discreetly save money on your purchase and reduce your buyer closing costs in NYC. Closing costs are higher for condos than co-ops, and closing costs are always greater for ‘new construction’ (sponsor) sales. In most cases, you will also pay higher closing costs if you are financing the purchase vs. making an all-cash transaction.

Hauseit® Best Deal Guarantee

Real Brokers. Discreet Savings. You’ll always get the best deal through Hauseit, we guarantee it. If you find a better deal elsewhere, we’ll beat it. Plus, you’ll always be paired with a trustworthy, experienced, brand name real estate broker who never openly discounts so you’ll never have to worry about other agents treating them or you any differently.

Should I buy a co-op or a condo? Is buying a coop a good investment in NYC? Read our article on the pro’s and con’s of buying a co-operative apartment in New York City before you begin your home search!

Closing Costs NYC – For Buyers

Closing Costs NYC – For Condo Buyers

$68,748 (3.7% of sale price)

Savings with Hauseit’s Buyer Closing Credit: $18,700

Final Closing Costs: $50,048 (2.7% of sale price)

Based on 2015 NYC average sale price of $1.87 million
Purchase of existing construction with a mortgage

NYC Condo Buyer Closing Costs (based on $1.87m purchase price):

  • NYS/NYC Mansion Tax (1%) – $18,700
  • Title Insurance – $7,500
  • Buyer’s Attorney – $2,500
  • Move-In Deposit – $500

For NYC Buyers Seeking Financing (based on $1.87m purchase price):

  • NYC/NYS Mortgage Tax – (2.05-2.80%) $35,998
  • Bank Attorney Fee – $750
  • Bank Loan Origination Fee – $750
  • Appraisal – $450
  • Mortgage Application & Processing Fee – $500
  • Credit Report & Employment Verification – $100
  • Title Search & Recording Fees – $1,000
Additional Costs for Buying of New Construction in NYC:
  • NYC Real Property Transfer Tax (RPTT) & Filing Fee (1-1.425%) – $26,748
  • NY State Transfer Tax (0.4%) – $7,480
  • Seller’s Attorney Fee – $2,500

Closing Costs NYC – For Co-Op Buyers

$25,550 (1.4% of sale price)

Savings with Hauseit’s Buyer Closing Credit: $18,700

Final Closing Costs: $6,850 (0.4% of sale price)

Based on 2015 NYC average sale price of $1.87 million
Purchase of existing construction with a mortgage

NYC Co-op Buyer Closing Costs (based on $1.87m purchase price):

  • NYS/NYC Mansion Tax (1%) – $18,700
  • Buyer’s Attorney – $2,500
  • Move-In Deposit – $500
  • UCC-1 Filing Fee – $100

For NYC Buyers Seeking Financing (based on $1.87m purchase price):

  • Bank Attorney Fee – $750
  • Bank Loan Origination Fee – $750
  • Appraisal – $450
  • Mortgage Application & Processing Fee – $500
  • Credit Report & Employment Verification – $100
  • Title Search & Recording Fees – $1,000
  • Financing/Recognition Agreement Fee – $200
Additional Costs for Buying of New Construction in NYC:
  • NYC Real Property Transfer Tax (RPTT) & Filing Fee (1-1.425%) – $26,748
  • NY State Transfer Tax (0.4%) – $7,480
  • Seller’s Attorney Fee – $2,500

NYC Buyer Closing Cost #1: $18,700 – New York State / NYC Mansion Tax

The New York City mansion tax applies to the sale of property valued at or above $1 million. The amount of the mansion tax is 1% of the purchase price and is customarily paid by the buyer in the transaction.

The mansion tax threshold of $1 million has not been raised since the tax was initiated in 1989, when NYC was faced with recession and a budgetary deficit.

Adjusted for inflation, $1 million in 1989 is worth approximately $1.92 million in today’s dollars. While there are currently discussions underway to raise the ‘mansion tax’ threshold to $1.75 million and also institute a mega mansion tax for sales over $5 million in order to fund the construction of affordable housing units, nothing has been finalized yet.

Pro Tip: Eliminate the 1% Mansion Tax with a Hauseit Buyer Closing Credit. The typical NYC buyer closing credit can save you $20,000 or more on your purchase, more than paying for your New York City mansion tax bill.

NYC Buyer Closing Cost #2: $7,500 – Title Insurance (Condo only)

Title insurance offers the buyer protection against any future claims made against the title for issues which were undiscovered at the time of the purchase when the original title search was conducted by the insurance agency. In the event that you are financing your purchase, title insurance would consist of two parts: a lender’s policy, which covers the amount of the loan exposure and declines over time as you make payments, and an owner’s policy, which is taken out for the full purchase price and does not decline over time.

The costs of title insurance in New York State can be substantial. There are many factors which contribute to this, although the primary reason is overall lack of competition in the industry. As of 2015, New York State is currently looking into ways to increase competition and reduce the price for consumers.

Since co ops do not have physical titles, buyers of these units can avoid title insurance completely. For NYC co op buyers, the combination of not having to pay for title insurance or the NYC/NYS Mortgage Tax (in the event a bank loan is needed) means that co op buyer closing costs in NYC are substantially lower than for condos.

NYC Buyer Closing Cost #3: $2,500 – Buyer's Attorney

As is the case for sellers, It’s highly recommended that NYC home buyers obtain top notch legal representation when completing the home purchase process process. Given the various legal risks associated with such a large purchase, it’s a no brainer to hire an attorney so that you may sleep easy at night. You may be able to find a lawyer who charges less than $2,500, however we advise you to proceed with caution. Having questionable, low-quality representation could cost you thousands of dollars down the road. We are in touch with proven, highly-experienced real estate attorneys if you need an introduction.

NYC Buyer Closing Cost #4: $500 – Buyer Move-In Deposit

Depending on the rules of the condo or co-op in which your unit is located, you may be required to make a refundable ‘move-in’ deposit. You can generally expect to recover this money in the future, however as it is a required cash outlay it’s worth budgeting for in your purchase calculations.

NYC Buyer Closing Cost #5: $39,748 - Additional Fees for Buyers Seeking Financing

NYC Buyer Additional Financing Closing Cost #1: $35,998 - NYC Mortgage Tax (Condo only)

The NYC/NYS Mortgage Tax is levied on the total amount of the mortgage for the purchase of real property (condos, townhouses and homes) at the following rates:

  • Mortgages below $500,000 = 2.05% of borrowed amount

  • Mortgages over $500,000 for 1-3 family residential unit and individual residential condo units = 2.175%

  • Mortgages on all other property over $500,000 = 2.80%

Please note that these figures include the NYS mortgage tax of 0.5% in addition to additional NYC-specific mortgage tax elements. Fortunately, buyers of NYC co-ops are exempt from the Mortgage Recording Tax because co-op owners hold shares in a building instead of owning real property with a deed.

NYC Buyer Additional Financing Closing Cost #2: $3,750 - Collection of Additional Fees

NYC home buyers who will be financing the purchase can also expect to pay most if not all of the additional costs below:

  • $750 – Bank Attorney Fee

  • $750 – Bank Loan Origination Fee

  • $450 – Property Appraisal Fee

  • $500 – Mortgage Application & Processing Fee

  • $100 – Credit Report & Employment Verification Fee

  • $1000 – Title Search & Recording Fees

  • $200 – Financing / Recognition Agreement Fee (Co-op only)

Learn more about NYC real estate taxes and the associated costs of home ownership in New York City!

NYC Buyer Closing Cost #6: $36,728 - Extra Fees for Purchases of New Construction Units

NYC home buyers who purchase new construction directly from sponsors are also responsible for costs which are normally paid by the Seller for existing construction units. They include the following:

  • $26,748 – NYC Real Property Transfer Tax (RPTT) & Filing Fee

  • $7,480 – NY State Transfer Tax

  • $2,500  – Seller’s Attorney Fee

NYC Buyer Closing Cost #7: $100 - Extra Fee for Purchase of NYC Co-ops

  • $100 – (Co-op Only) UCC-1 Filing Fee

Hauseit® Buyer Closing Credit

Save thousands on your purchase with a discreet buyer closing credit without disrupting your deal or upsetting the other party. After all, what’s the point of a sweet closing gift if you don’t close?

Disclosure: Hauseit and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. You should consult your own tax, legal, financial and accounting advisors before engaging in any transaction. The services marketed on Hauseit.com are provided by licensed real estate brokers and other third party professional service providers. Hauseit LLC is not a licensed real estate broker nor a member of any multiple listing service (MLS).
  • Fully market your home on your local MLS and dozens of popular websites with Hauseit’s Agent Assisted FSBO Listing Service. We offer the REBNY RLS which covers NYC, the HGMLS which covers the Hudson Valley, and the MLSLI which covers Long Island. An Agent Assisted FSBO is so much more than a flat fee MLS listing. That’s because your home is listed by one of our reputable, traditional partner brokers who never openly discount their services. As a result, not only will you receive the same marketing exposure as a full commission customer, your listing won’t be treated any differently by other brokers!