Why Do Real Estate Agents Not Give Commission Rebates in NYC: https://www.hauseit.com/why-do-real-estate-agents-not-give-commission-rebates-nyc/
Save Money with a Hauseit Buyer Closing Credit:
https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Buyers Can Fire Their Agent Anytime
It’s well known that home buyers never have to sign exclusivity agreements in NYC, meaning that they can switch agents or simply fire their agent at almost any time. This can be extremely frustrating for agents if they’ve already sunk a lot of time into showing apartments to the buyer or simply have spent a ton of time speaking with them.
However, for agents who aren’t providing discounts or rebates, they’ll at least have the chance to earn a full buyer agent commission on at least some of the deals that go through. But if agents are giving a commission rebate it can be extremely frustrating for a client to back out or cancel at a late stage.
That’s because the rebate agent has spent just as much time on the client as a full commission agent, yet the upside was limited to begin with. So it can be even more frustrating for a customer to cancel despite having limited the buyer agent’s upside from the outset.
Therefore, the customer’s ability to cancel at virtually any time really discourages most agents from providing commission rebates to buyers.
Commission Rebate Customers Are More Demanding
While the majority of Hauseit Buyer Closing Credit customers in our experience are quite reasonable and a pleasure to deal with, we’ve also encountered the occasional buyer who doesn’t quite appreciate the fact that they are getting a significant rebate of the buyer agent’s commission.
As with any business, the Pareto Principle, otherwise known as the 80/20 rule, seems to apply. There will always be extremely unreasonable customers in any business, but it does seem that buyers who seek rebates are statistically more likely to be extremely demanding vs regular buyers who aren’t seeking a rebate.
The vast majority of real estate agents do not provide commission rebates to buyers for this exact reason. Why would they bother doing so when they can make several times as much money with much easier going clients? Why would they bother being harassed, insulted, and called late at night just so they can earn a fraction of what their colleagues are making on each deal?
For the vast majority of full-time real estate agents who traditionally rely on referrals and networking for new clients, providing a rebate simply does not make sense from a simple cost-benefit perspective.
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
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