NestEdge is unlike any other Westchester-based real
estate brokerage company. NestEdge is revolutionizing home buying by
offering ALL of the same services to our clients as traditional brokerage
firms, with an understanding that purchasing a home has evolved with modern
In the past, if a buyer was interested in purchasing a home,
he or she approached a real estate broker who worked countless hours trying to
locate their ideal home (without the internet) and helped negotiate the closing
(without email)- it was a tireless job!
NestEdge recognizes that the home buying process has
changed significantly through technology. Home buyers have access to the same
listings as brokers. While brokers still
play an integral role, is that service worth up to 3% of the purchase price?
Of course not, but that is the customary commission that a
traditional broker still receives.
At NestEdge, the broker offers the same services as a
traditional broker, with a modern twist. The buyer receives a REBATE of up to 2% of the home purchase price.
How Much Will My Rebate Be?
The buyer’s rebate will vary depending on the final purchase
price of the home.
For a home purchase price less than $500,000,
the rebate amount is calculated by subtracting $8,500 from the buy-side broker’s
As an example, if the purchase price is
$450,000, the buyer will receive a rebate of $5,000 assuming a 3% buy-side
For a home purchase price of $500,000 to
$999,999, the rebate equates to 1.00% of
the purchase price.As an example, if the purchase price is $750,000,
the buyer will receive a rebate of $7,500 at closing.
For a home purchase price of $1,000,000 to $1,999,999,
the rebate equates to 1.25% of the
purchase price.As an example, if the purchase price is $1,500,000,
the buyer will receive a rebate of $18,750 at closing.
For a home purchase of $2,000,000 to 2,999,999,
the rebate equates to 1.50% of the
purchase price.As an
example, if the purchase price is $2,500,000, the buyer will receive a rebate of
$37,500 at the closing.
For a home purchase of $3,000,000 or greater,
the rebate equates to 2.00% of the
purchase price.As an
example, if the purchase price is $5,000,000, the buyer will receive a rebate
of $100,000 at the closing.
Please note that all rebates are valid only for homes that are listed with total pre-split commissions of 6%. Homes with total pre-split commissions of 5% will be paid the rebate amount above less .25%. Home listed with pre-split commissions of less than 5% will be handled on a case-by-case basis. Rebates not offered on new construction, knock-downs or clients directly referred by Trulia or Zillow.
Frequently Asked Questions
When will I receive my rebate?
You will receive a rebate check NO LATER than 24 hours after the closing on your new home. In most cases you will receive the rebate at the closing.
A rebate on my house? I've never heard of such a thing. Should I consult my lawyer?
Not only is it legal in New York State, the practice of brokers providing rebates to buyers is actually encouraged by our state's government. New York Attorney General Eric T. Schneiderman wrote this letter encouraging rebates as a method in which to promote better competition in the residential real estate industry.
Does the rebate go on my HUD form?
No, the rebate does not appear on the HUD form. It is paid separately, at/or post-closing.
I've been working with some of the more popular brokers in the area. They've never mentioned a rebate. Why not?
That's probably because the business model for a traditional broker doesn't allow them to pay out rebates and they are not incentivized to do so. Traditional brokers usually have substantial overhead on lavish office space, expensive phone systems, extensive use of printed marketing materials and other costs common with the traditional brokerage model. At NestEdge, we run lean. No lavish office space. No expensive phone systems. No cardboard printed mailers. We save that money…and pass the savings onto our clients.
I live in New York State, but outside of Westchester County. Can I still use your services?
In most cases, yes. Contact us.
I don't need a broker. I just prefer to run with it myself. But I'd still like a rebate. What should I do?
At NestEdge, we are happy to be involved AS MUCH or AS LITTLE as you like. If you would like us to be at all showings, your inspection, deeply rooted in the negotiation and at the closing…we will do ALL OF THAT. If you prefer to run the show yourself and call us at the end, you can do that too. Just call us prior to locating your dream home and we'll guide you on how to handle either scenario, or one in between.
Is my rebate Taxable?
The IRS determined in a private letter ruling that rebates granted to buyers from brokers are not taxable, instead, the rebate would decrease the cost basis for the home when it is eventually sold. For example, if a buyer receives a $10,000 rebate on an $800,000 purchase, the cost basis of the property at the time of sale would be $790,000 as opposed to $800,000. Although private letter rulings are only binding on the party to whom the ruling is issued, NestEdge operates pursuant to the IRS's guidance in this ruling and does not issue clients a 1099 in connection with the rebate. We always advise clients to consult with a tax professional with respect to the tax implications of the rebate. The IRS ruling can be found here.
Will a seller give me a better deal on my own without a broker?
If a buyer is not represented by a broker, the selling broker would keep the entire commission (typically 6%). Further, the selling broker can not legally give you a discount due to your lack of representation. By using NestEdge, you are guaranteed to take home a portion of the broker's commission.
I see that the sellers for the homes I am interested in are generally listed by major brokerage houses in my area. Will those brokers work with you?
We are a members of Hudson Gateway. As members, all brokerage houses are contractually obligated to work with us, and do so willingly.
I am looking to sell my home. Can NestEdge offer a rebate for selling my home also?
Absolutely. Contact us and we'll explain the details.
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