Do You Know About The NYC Buyer’s Agent Commission Rebate?

By: ROS Team

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You heard about it or not, the upshot is, it is extremely pleasant. Buying a home turns out quite exhausting, both physically and financially. It is not merely the asking price of a home a seller demands but additional taxes and deposits which make the closing cost uncomfortable, not to mention the agent’s commission.

Now what if you get to know that a fraction of what you paid to the agent is likely to be returned to your account, would not you feel happy? It might not make a very big figure but certainly a saving worth it.

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Let us get to know how it works and how can you take benefit from it?

What is the Agent’s Commission Rebate?

It is an amount in which buyers get back from the agent who assisted in brokering a deal.

During the purchase of a home, agents or brokers are hired to conduct the whole process of the deal, and in return, buyers pay them 6% of the total cost to the brokers which is equally split among the two brokers at the closing. Under the buyer’s agent commission rebate, a fraction of 3% is returned to the buyer.

Were You Familiar with the Buyer’s Agent Commission Rebate Earlier?

It has been observed that most of the buyers are not familiar with this term and they get quite surprised when they get to know how convincing this offer looks. One major reason behind it is that it does not look pleasant to most of the agents out there in the market. So they do not extend this idea to their clients.

One other reason is that the agents invest their time and energies in learning the craft of purchase and sale. They consider their commission a well-deserved earning and rightfully so. Therefore, they do not share the idea of the rebate with their client.

In addition to them, one more genuine reason is that the way the whole process works asks for many expenses. Agents manage them all on their own so offering rebates does not look convincing to them.

Is the Buyer’s Agent Commission Rebate Legal?

To be honest, they are not even legal but also encouraged by the NYC attorney’s office. In the USA, most states advocate for compensation under rebates. Well, otherwise there is no way to compensate for the savings to the buyer.

As a rule, the buyer has to pay the 6% commission but if the buyer considers it too much then the rebate provides an option to adjust according to the negotiation.

Does the Buyer’s Agent Commission Rebate come Under the Tax Net?

The Single-word answer to the question is no. The reason behind it is that the reduction in price you receive is not your income which comes under the tax net. Therefore, you can have it all, whatever comes your way.

So Why do you get the Return on Commission?

It perplexes a mind as to why would someone return the money which is earned rightfully and deservingly. There are two chief reasons for doing so. The major reason is that agents like to return some of the commission as a token or incentive for hiring them in the first place. It goes in their best return as well as they build a happy relationship with the buyer who is likely to do the purchase in the future or would recommend the same agent if someone in his circle going to purchase a property.

Another reason for doing it is that technology has made the whole system quite efficient. Brokers incorporate modern channels to conduct the whole process and in the end, keep their fair share and return the rest to the buyers out of sheer dignity.

One more reason which makes sense is that agents are the experts in the market and know where and how to save unnecessary expenses. That portion of savings they return in the end as a buyer’s agent commission rebate.

How Does the Rebate Work?

Though, you can ask any broker to come to terms with the rebate with you. But sometimes, it cringes the agent as they take it personally and mind for undermining their worth. It can be cumbersome for you as well.

To avoid such situations, the best way to go at it is to find the agent who is offering a commission rebate to every client and you do not have to do the difficult task of asking for a rebate.

Note: you shall bring all the commission details in the paperwork to avoid any misunderstanding at the end.

A Win-Win Situation for Everyone:

  • Since we have discussed both sides of the story, it reflects that it is a win-win situation for both parties: the agent and the buyer. For agents is that they win over the heart of their client and establish a strong referral base by keep offering commission rebate which makes up for every loss of a penny in the big picture.
  • For agents, it is quite a lucrative offer as buyers feel exhausted towards the closing since taxes and down payment put a big figure for them to arrange. So any deduction in the closing cost, no matter how small is that, feels like a fresh breath of air.


We have tried to shed light on every aspect of the agent’s buyer commission rebate. And you must be having a fair idea of ins and outs of it. So now it is your turn to see how much benefit you can take from it. With it, good luck with your home shopping.

Related Article:

About The Commission Of A Real Estate Agent
Common Myths About Estate Agent Commission