Frequently Asked Questions

Although the way residential real estate commissions are paid has been recently upended nationally in connection with industry settlements of landmark class action litigation, the way commissions are calculated and handled in New York City has not really changed. In New York City residential real estate deals, the seller typically pays 2.5% or 3% 6% of the purchase price to each of the listing agent and the buyer’s agent.

Digs provides high-level representation and consultation to its buyer clients on every transaction. We bring to the table deep market knowledge, years of industry experience as well as a comprehensive understanding of all aspects of the deal. We add significant value, even to our most sophisticated clients, will shepherd your transaction over the finish line, and, on top of all that, we will write you a check for up to 2% of your purchase price after closing.

No. There are absolutely no hidden fees. All potential costs will be disclosed to you up front before you decide to work with Digs. In nearly every transaction that we have done since 2014, with the exception of one or two FSBOs, the buyer’s broker’s commission has been paid by the seller at the closing. Not only will you get full-service buyer representation, but Digs will pay you up to two thirds of the commission that it earns at the closing.

Yes. Every buyer who works with Digs receives a full service experience. One of the differences between working with Digs and a conventional broker is that Digs will tailor its services during the client’s search phase to cater to the client’s specific needs. Digs has clients who are completely independent during the search phase, those who need much more hand-holding from the beginning and dozens more in between those two extremes. Regardless of what a client wants during the search phase, every Digs client receives the same top tier professional service from and after the point at which a unit is targeted for bidding (including a pricing analysis, bidding advice, expert negotiation, etc.). Click here to view the Services we offer buyers.

Absolutely! We do a ton of new construction deals – we have helped people buy in every type of new development the City has to offer, from 8-figure purchases in supertalls on Billionaire’s Row to 6 figure purchases in small 4-unit brownstone conversions in Bed Stuy, and everything in between. In a rising market, since the price of most of the City’s new construction will not be negotiable, working with Digs will often be the only way a buyer can obtain a discount on the purchase price.

Yes, commission rebates are unambiguously legal in New York State. In April 2015, Section 442 of New York’s Real Property Law was amended to carve out commission rebates from the provision which otherwise prohibits splitting commissions with an unlicensed broker. This amendment codified what was already deemed a legal practice by the Department of State and the Attorney General’s office, which had each previously issued opinions, letters and/or decisions agreeing that a licensed broker could offer rebates to their clients as an incentive for using its services. The operative section reads as follows (with the new amended language in underline):

“Except when permitted pursuant to the foregoing provisions of this Section, no real estate broker shall pay or agree to pay any part of a fee, commission or other compensation received by the broker, or due, or to become due to the broker to any person, firm or corporation who or which is or is to be a party to the transaction in which such fee, commission or other compensation shall be or become due to the broker; provided, however, that nothing in this section shall prohibit a real estate broker from offering any part of a fee, commission, or other compensation received by the broker to the seller, buyer, landlord or tenant who is buying, selling, exchanging, leasing, renting or negotiating a loan upon any real estate including the resale of a condominium or cooperative apartment. Such fee, commission or other compensation must not be made to the seller, buyer, landlord or tenant for performing any activity requiring a license under this Article.”

In a private letter ruling issued in connection with a case brought by a national brokerage firm to specifically address whether commission rebates are taxable, the IRS determined that commission rebates are generally not taxable as ordinary income, but rather reduce the buyer’s cost basis in the property. For example, if a buyer receives a $20,000 rebate on a $1,000,000 purchase, then in the eyes of the IRS, the buyer would have only paid $980,000 for the property. Although private letter rulings are only binding on the party to whom the ruling is issued, Digs operates pursuant to the IRS’s guidance in this ruling and does not issue clients a 1099 in connection with the rebate. Since we are not accountants or tax professionals, we always advise clients to consult with a tax professional with respect to the tax implications of the rebate. 

Yes. We represent clients all over New York City and have worked on dozens of townhouses purchases in deep Brooklyn and Queens. 

While we understand that websites like StreetEasy make it possible for everybody to be independent during the search phase, it is important to engage Digs as early in the search process as possible. We can add the most value if you get in touch with us early on in the process. If you find out about us later in your search, we are always happy to get your call at any stage and will step in if it is possible and appropriate. 

A lot! Click here to see how much you will actually save. To illustrate, if you buy a condo for a price in excess of $10,000,000 with 10% down, and the buy-side commission is 3%, your rebate will put 20% of your down payment back in your pocket at closing – that is real money.

Yes. Digs Realty is a member of REBNY. With such membership, all other REBNY brokers (virtually all brokers in Manhattan and brownstone Brooklyn) are contractually obligated to cooperate and work with us, and vice versa. As a result, buy-side brokers have no concerns bringing their clients to our sales listings, and we have never had a problem engaging a sell-side broker who is also a REBNY member.

That depends on the “discount broker” you hire. When you hire Digs, you will compromise on nothing. We pride ourselves on being the very best at what we do. Skeptical? Check out what some of our clients have said about us here.. We are also happy to connect you with current or former clients, who can share their experiences with you. The majority of our clients are referrals and repeat clients, which is a testament to our client satisfaction.

We designed our rebate and discounted commission model to address a need in the marketplace. Initially, Digs was just representing buyers, with the goal of making homeownership in NYC more affordable while still providing sophisticated high level representation (with 2% cash back at closing, our clients are able to buy apartments they might not otherwise be able to afford). After a few of our buy-side clients asked us if we would sell their current homes for them for less than a traditional broker would charge, we couldn’t ignore that the need was clearly there on the sell-side as well. While we think we’re awesome and are worth every penny we earn, we don’t think anyone should have to pay $240,000 to sell their $4,000,000 home. The prevailing commission structure may be necessary to support the immense overhead of the large brokerage entities that dominate the industry here in NYC, but we have proven that the cost of providing competent, effective and efficient brokerage that meets or exceeds the industry standard in all areas is not nearly as high as those companies charge.

We dislike a lot of brokers too, but not all. Some brokers are honest, hard-working, put the needs of their clients above everything else, and will go to unimaginable lengths to help close the right deal for their clients. We put ourselves in that category. A large number of our clients come to us, and the first thing they say is that they hate brokers, think we are useless and would prefer not to work with us, but they will just for the rebate or for the discount commission. They think they could do it themselves, and that we won’t add any value beyond the extra money in their pockets. While we would love it if all our clients came to us and embraced us with open arms, given our business model, this is not typically the case (we tend to attract the broker-hating community). However, while many of our clients begin our relationship together with a huge hurdle for us to surmount, without fail (if we can be so bold) we always do. When your deal closes, you will be glad you hired Digs, you will be grateful for the tangible and intangible value we add, and like many of our clients, you will (hopefully) consider us friends.

No. The prevailing etiquette in the market today is that listing brokers expect that buyers’ brokers handle all communication and scheduling and attend all appointments for private showings. Accordingly, if you want to work with Digs, it is important that you reach out to us as early as possible to commence the working relationship. Typical protocol is that you would send us a listing with a request for a private showing with several days and times that you are available and Digs will arrange and accompany you on the appointment. If you find Digs after having reached out directly to the listing broker, Digs will still be able to step in and represent you, but it is always best to get us
involved early.

Typically, the rebate calculation is very simple, as detailed in the YOUR REBATE section of this website. In rare instances, the rebate amount will be reduced when a buyer is referred to us through a third party who is entitled to receive a portion of our commission. Additionally, if you are referred to Digs via Streeteasy, Zillow or another source that charges a referral fee, you will not be entitled to a rebate.  2025 also saw class action lawsuits settled with the National Association of Realtors, as well as many of the largest residential real estate brokerage firms in the country.  As a result of these settlements, there are a number of new buy-side brokerage practices that have been implemented by REBNY, the trade group that sets rules for residential real estate brokers in New York City, including the mandatory decoupling of buy-side and sell-side commissions.  However, even though there have been a number of administrative changes in NYC, the vast majority of residential real estate brokerage commissions are still being paid by the seller and, to the extent that Digs is paid a commission by the seller on a transaction, you will be eligible for a rebate.