When buying a home in Westchester County, NY, every dollar counts. One little-known strategy can save buyers money, reduce appraisal risks, and make offers more attractive: don’t have sellers pay the buyers’ commissions.
Traditionally, sellers pay the buyer’s agent commission as part of the transaction. While this is common, it often inflates the purchase price, increases cash needed to close, and can even affect future property taxes. But there’s a smarter alternative that benefits both buyers and sellers — and it’s simpler than you think.
This guide explains the strategy in three parts, including step-by-step math, so Westchester buyers can retain more cash, reduce costs, and improve their chances of winning in competitive markets.
Part 1 – Why Buyers Should Avoid Seller-Paid Commissions
The typical approach has sellers covering the buyers’ commissions, but this creates several hidden costs:
Hidden Costs of Seller-Paid Commissions
- Higher purchase price (commissions get built into the pricing)
- More cash needed to close (because down payments are percentage-based)
- Inflated closing costs and potential future property taxes
Instead, buyers can pay their agents directly — and this strategy offers major advantages.
Benefits of Buyers Paying Their Own Commissions
- Lower purchase price
- Reduced down payment by financing the commission
- Transparency and control
- Lower cash needed at closing
- Stronger offers in competitive markets
Bottom line: Buyers retain more money, even though they are technically paying their agent themselves.
Part 2 – How the Strategy Works (The Basics)
Here’s the simplified step-by-step process for implementing this in Westchester County:
Step-by-Step Structure
- Reduce the purchase price by the commission amount.
- Increase the financed amount accordingly, lowering the down payment.
- Pay your buyer’s agent directly using the retained cash.
- Mortgage payment difference stays minimal.
- PMI (if required) is small and often removed quickly as equity grows.
Benefits of Shifting Commission Responsibility
- Lower upfront cash requirement
- Reduced appraisal risk
- More attractive offers for sellers
This is a win-win scenario that saves money and reduces risk for both buyers and sellers.
Part 3 – The Detailed Math Behind the Strategy
Understanding the numbers makes the strategy crystal clear.
How the Math Works
- Start with total cash on hand
- Reduce the purchase price by the commission amount
- Adjust the financed percentage (e.g., 20% → 17.5%)
- Pay the buy-side commission using the retained cash
- Monthly payment change stays extremely small
- PMI (if any) is minimal and removable
Results You Can Expect
- Lower cash needed at closing
- Reduced appraisal risk
- More competitive and appealing offers for sellers
In short: Buyers keep more money, pay less upfront, and strengthen their bargaining position.
Why This Strategy Works Specifically in Westchester County
Westchester is a competitive real estate market where every advantage matters:
- Sellers want offers with fewer expenses
- Buyers want reduced cash out-of-pocket
- Financing commissions directly creates mutual alignment
At the Mark Seiden Real Estate Team, we guide clients through advanced buying strategies like this to maximize savings and help them win in bidding wars.
Ready to Buy Smarter in Westchester County, NY?
If you’re looking to buy a home in Westchester, Rockland, Putnam, Dutchess, Orange County NY or Fairfield County CT, our team can help you implement strategies like this and more.