Is Hauseit locally based in New York?
Yes! Hauseit was founded in New York City and our team knows the NYC real estate market inside and out. We’re proud to be the largest, most reputable and most established reduced commission platform in New York. Furthermore, all of our partner brokers are locally based with offices and agents in all five boroughs of New York City. Since we launched in late 2014, we’ve expanded our coverage to Long Island and the Hudson Valley. Our partner brokers are all well established members of the Real Estate Board of New York, the Hudson Gateway Association of Realtors and the Long Island Board of Realtors.
What is a NYC broker commission rebate?
A NYC broker commission rebate is a customer incentive offered by a buyer’s agent to a buyer. A NYC broker commission rebate is typically a split of the buyer agent’s commission paid to the buyer at or after closing. Since all of our partner brokers are established, traditional brokers who never openly discount their services, your rebate will be our little secret. Our partner buyer’s brokers will discreetly write you a check post closing which is no different than you receiving a traditional closing gift. The only difference is that a commission rebate will be substantially more valuable than your typical congratulatory bottle of wine!
Are broker commission rebates legal in New York?
Yes. New York State Attorney General Eric Schneiderman put out a press release in April 2015 urging New Yorkers to take advantage of commission rebates as a way to promote competition in the real estate industry. In fact, commission rebates are legal in a total of 40 states including New York State. 9 states however have an outright ban on commission rebates due to strong lobbying efforts by the real estate brokerage industry: Alabama, Alaska, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee. The 10th state, Iowa, prohibits rebates when there are two or more real estate brokers on a transaction.
How much money can I save?
You can save up to 2% of your purchase price with a NYC broker commission rebate. This means you’ll save up to $20,000 for each $1 million of purchase price. On the average $2 million apartment purchase in NYC, you can save up to $40,000!
Are there any hidden fees?
No. You don’t pay anything to work with a buyer’s agent. The seller will usually be contractually bound to pay 6% commission in an Exclusive Right to Sell Listing Agreement. This commission is set in advance and the only difference is who earns the commission. In most transactions, the listing agent will split half, or 3%, of the commission with the buyer’s agent. If you waive your right to a buyer’s agent, you’re simply enabling the seller’s agent to earn the entire 6% commission. Since 90% of all deals are done between two agents in New York City, you’d be enabling the listing agent to have an unexpected and rare double commission payday.
Why aren't NYC broker commission rebates more common?
Broker commission rebates aren’t more common in NYC for a variety of reasons. First of all, most traditional real estate agencies prohibit discounting because it diminishes the brand value of the firm. Why would a firm focused on selling luxury real estate allow brand incongruity through rogue agents running around saying they’ll work for less? Secondly, discounting as a strategy has never worked because the real estate industry is a two agent model, meaning you need a seller’s agent and a buyer’s agent to complete most transactions. This presents a significant problem to your typical discount broker out to disrupt the industry. Why would a traditional real estate agent help someone who’s throwing bombs at them?
What's different about your service?
Discretion. We’ve learned that customers do want to save money, but not at the expense of jeopardizing the biggest transaction of their lives. Discounting as a concept is not exactly new. There’s a reason why it doesn’t work in real estate. Unlike the travel agent industry which was indeed disrupted because it was a single agent model, real estate brokerage is a two agent game. 90% of all transactions are still done today between a buyer’s agent and a seller’s agent. As a result, someone who doesn’t work well with others is not going to get the best results for their customers. Fortunately for consumers, all of our partner brokers are traditional, brand name brokers who never openly discount their services. As a result, our partner brokers have great working relationships with the wider real estate community so you’ll never have to worry about other agents treating them or you any differently.
Who are your partner brokers?
Our partner brokers are some of the most reputable and highly experienced real estate brokers in New York. None of our partner brokers openly discount their services because doing so would not only be embarrassing but also damage their working relationships with other brokers and harm their brands. You can rest assured that the only difference between working with an experienced local Realtor and one of our partner brokers is the closing gift you’ll receive. Instead of nothing or a $40 bottle of sparkling wine, why not receive up to 2% of the purchase price by check?