Broker Commission Rebates in Westchester
The internet has changed the way we live our lives. You’ve heard this 1000 times. It’s changed the way we communicate, it has changed the way we work, the way we shop, the way we bank, the way we play, and even the way we date.
From a commerce perspective, Amazon has changed the way we buy day-to-day products. Services like Uber and Lyft have changed the way we get around.
However, there is one key part of commerce that has yet to change. That is Real Estate. Though my focus is on Westchester Real Estate and Homes for sale in Chappaqua, this is still valid nationally.
Let me be clear. The way we shop and search for real estate has changed. However, the way we carry forth the transaction has not.
As little as ten to fifteen years ago, when a person decided that they wanted to enter the Westchester Real Estate market and look for homes for sale in Chappaqua or homes for sale in Scarsdale they had two options at their disposal. One, they could call a local, traditional real estate agent in their town or they could open the New York Times.
Many people, even if they were going to eventually use a traditional real estate agent, would open the New York Times, circle properties in Top Rated Westchester School districts, jump in the family trickster and drive by homes that piqued their interest.
I often tell my clients that this process of searching still takes place. However, instead of shopping for Westchester Real Estate in the New York Times and then going for a drive-by of the property, customers shop on the internet, at aggregator sites like Zillow or Trulia…and then they do a drive-by just as in the old days.
In essence, what I am describing above is a marked difference in the way people SEARCH for homes, but it doesn’t change, in any discernible way, the method by which people PURCHASE homes.
Zillow has become an incredible tool that has leveled the playing field when it comes to putting home buyers on the same level as brokers and agents in terms of visibility into the Westchester Real Estate market as a whole.
With one notable exception, the Zestimate, which is an entirely inaccurate and nonsensical metric, consumers of real estate and brokers and agents have the same access to current inventory in the market due to Zillow.
Let’s say for argument’s sake that about 50% of the traditional real estate agent’s job is the facilitation of a search for the right property for their clients. Based on what we have said above about Zillow, half of the real estate agent’s job is now completely done by the consumer. NestEdge Realty compensates its clients for carrying out this task themselves. Traditional real estate agents still make the same profit while doing a smaller share of the work.
In 2019 there are countless number of new real estate platforms trying to re-invent the business of the traditional real estate agent. Firms like OpenDoor, Redfin, Purplebricks, and a slew of companies trying to facilitate iBuying have emerged.
As of today none of these platforms have captured a relevant share of the marketplace in any discernible way. That said, I do firmly believe that a new platform will emerge within the next decade that will re-invent the way that residential real estate transactions are completed.
NestEdge Realty was founded as a way for the consumer to benefit during the time that the gap exists between traditional real estate and the future platform that will eventually displace traditional real estate agents.
At NestEdge Realty, we believe that if a consumer does half of the job of the traditional real estate agent, the consumer should be paid handsomely for that effort. A real estate agent in 2019 should not be entitled to a full commission when they need to do half of the work that the same agent was required to complete for their clients 20 years ago.
At NestEdge Realty, we put those unearned commission dollars back in the pockets of our homebuyers via tax-free broker commission rebates. Moreover, our Broker Commission rebates are more substantial than what is offered by Redfin. Our motto at NestEdge Realty is that not only does the client receive a nice rebate check at the closing table, but our agents also greatly exceed their counterparts in the performance of the 16 key tasks that any astute buyer agent should be undertaking.
We often are asked several questions about Broker Commission Rebates:
How come traditional Real Estate Brokers Don’t Offer a Broker Commission Rebate?
The Answer is for two reasons: First and most important is because traditional real estate brokers are not incentivized to pay rebates. Traditional agents feel they should be paid the same amount today when they are doing less work than they were required to before.
Secondly, traditional real estate agents are not set up to pay rebates. Traditional real estate agents have more overhead and larger expenses when compared to NestEdge Realty. NestEdge Realty does not have fancy office space, a large admin staff, complex phone systems or print needless glossy materials that go straight into the garbage. NestEdge Realty operates on a very lean budget and the money that is saved goes back into our client’s pockets.
Are Broker Commission Rebates Legal?
Not only are broker commission rebates legal in all of New York State, but they have also actually been encouraged for several years. Look at this letter from the attorney general of New York State. If you have never heard of a broker commission rebate, it is because the traditional real estate agent community is not incentivized to tell you about it. And our broker commission rebate can help you avoid the mansion tax.
Where does the broker commission rebate come from?
The broker commission rebate comes out of the buyer’s agent's share of the total commission in the real estate transaction. NestEdge then gives a portion of that commission back to the seller.
Are Broker Commission Rebates taxable?
Receiving a broker commission rebate is not considered a taxable event in New York state. However, the amount of the broker commission rebate should be subtracted from the cost basis when the homeowner decides to sell his or her property. The broker commission rebate does not affect your Westchester County Property Taxes.
Selling Westchester Real Estate
As illustrated above NestEdge Realty gives the homebuyer an advantage that was never possible before. However, NestEdge Realty can also offer a significant advantage to homeowners in Westchester County who are attempting to sell their homes. NestEdge Realty offers sellers significantly lower than average commission rates, which allows the homeowner to keep more of their hard-earned equity while pledging to be in attendance at showings of the property. Being in attendance at the showing of a property is critical for effectively selling real estate. Real estate agents who use lockboxes to sell a home are less effective and are a waste of the consumers hard earned equity.
Buy Smart. Sell Smart
