3% Commission
Explained
At 3%NY, we prioritize transparency in our commission policy, adapting it to align with recent developments in commission lawsuits.
We are committed to keeping our sellers fully informed about how their commissions are used, including how much is being paid to the Buyer's Agent, if any.
Traditional
Commission Structure
Traditionally, it's been common practice for a seller to pay the commission, which is then typically divided between the seller's agent (listing agent) and the buyer's agent.
Historically, this commission was often set at 6%, with each agent receiving 3%.
Fair and Equitable Approach
At 3%NY, we believe in a fair and equitable approach to commissions. When we act as a seller's broker, we charge a flat 3% commission. If the buyer has a broker, we typically split this commission evenly at 1.5% for each agent.
This split is usually agreed upon through negotiations between the two brokers involved in the transaction. At 3%NY, we adhere to a policy of compensating the buyer's broker only with the explicit permission of the seller. This ensures transparency and aligns with our commitment to keeping sellers in control of such decisions.
Challenges with Lower Commissions
However, it's essential to note a critical aspect of this process. Some buyer's agents in New York City may be hesitant about the 1.5% commission, which is lower than what they might be accustomed to. While it's important to highlight that steering clients away from properties based on commission is neither ethical nor professional (and can in fact be investigated by the New York Attorney General's Office), we rely on the intelligence and discernment of buyers in today's real estate market.
We don’t believe our clients have anything to worry about. Should we become aware of any sort of discriminatory practices like this from potential buyer's agents, we will refer the matter to the NYS AG's office.
Further, steering away prospective buyers due to the low commission constitutes prohibited practice that is an antitrust law violation.
Seller's Commission
How the Commission Process Works, using 3%NY as your Listing Agent
01
Seller's Broker Commission (3%)
When you choose 3%NY as your seller's broker, we charge a flat 3% commission.
This commission is paid by the seller and is typically deducted from the final sale price at the closing.
02
Buyer's Broker Commission
(1.5% - if applicable)
If the buyer decides to work with a broker, the 3% commission we charge is evenly split between us, the seller's agent, and the buyer's agent, typically at 1.5% each.
This split is often negotiated between the two brokers involved in the transaction.
03
Payment at Closing
The commission fees are paid at the closing of the real estate transaction.
While the buyer typically brings a check to the closing table, the purchase price is adjusted to account for the broker's commission.
The commission should be proportionate to services rendered.
At 3%NY, given our ability to maintain a low overhead, we believe that the commission should be proportionate to the services rendered, which allows us to bring fairness back to the real estate transaction.
We know that today's informed buyers are more focused on finding the right property rather than being swayed by commission rates, ensuring a fair and ethical real estate experience for all parties involved.
Buyer's Commission
How the Commission Process works, using 3% as your Buyer's Agent
We understand that many of our clients who are selling their homes are also in the market for a new one. If your purchase is in New York City, we're happy to serve as your buyer's agent.
In fact, for this service, we rebate back to you up to 50% of the commission 3%NY receives at closing. In other words, if 3%NY receives a 3% commission on your purchase, we would rebate back to you 1.5% of the purchase price at closing (50% of the commission we receive).
While Our Services for Buyers are More Limited in Scope,
They Encompass What's Truly Essential:
01
Expert Assistance in Negotiations
02
Assisting in Crafting and
Submitting Offers
03
Helping You Assemble a Board Package (if needed)
The majority of the workload is typically handled by your real estate attorney and your lender (if any). Just as we bring equitable compensation to the selling process, we're committed to fairness in the buying process as well.
