Track Record Proves Traditional Brokers Work with Rebate Brokers and Discount Brokers
At Digs Realty, we have been offering rebates and discounts to our clients since 2014. Our track record of closing over 150 deals proves that traditional brokers have no issues working with good rebate brokers and discount brokers.
At the end of the day, all brokers want to close a transaction properly, professionally and efficiently, and get paid. As long as the rebate broker is professional, thorough, knowledgeable, and knows how to move a transaction forward, it is in the traditional agent’s best interests to work with that rebate broker to get the best possible deal for his or her clients. Many real estate agents will tell you they prefer to work with an agent on the other side of the deal. Typically, those deals are much more likely to get to the closing table than otherwise. This may not make sense to most people outside of the brokerage industry. Why wouldn’t a broker welcome the opportunity to make a double commission, right? But it is absolutely true.
Buyers who are represented by brokers are far more organized, responsive and prepared to proceed with a transaction, compared to those who do not have a broker. Those without a broker are generally more difficult to work with and more likely to bail on a deal. Most buyers and sellers working on their own don’t know the residential real estate buying and selling process. They aren’t familiar with the nuances, and have no idea how to put a board package together that will get accepted by management.
You Will Not Be at a Disadvantage Working with a Rebate Broker or Discount Broker
When Digs Realty formed in 2014, we thought perhaps some brokers would not want to work with us because they would not be fond of our model. However, we have seen over the years that this is never the case. Brokers always welcome our participation because they know that we are good at what we do and effective partners in managing transactions.
In the New York City real estate market, the vast majority of transactions are co-broked, with one broker representing the seller and one representing the buyer. A seller’s broker wants to sell their client’s apartments for the best price possible. A buyer’s broker wants to get their buyer client the home they want for the best price. The business model of the agent on the other side of the deal has zero effect on the economics of a transaction. They are still getting paid the same regardless of whether we share our commission with our clients. We still offer the same level of service to our clients and, as a result, achieve smooth transactions with happy agents on the other side of the table.
Additionally, we are part of REBNY (the Real Estate Board of New York), the trade group that most NYC brokers belong to. All members of REBNY are required to sign the Universal Co-Brokerage Agreement. This agreement, among other things, obligates all REBNY brokers to work with all other REBNY brokers and share commissions 50-50.