NYC Commission Changes: Understanding Buyer's Agent Agreements

Mandatory Agreements for Buyers

One of the most direct impacts of the recent NAR settlement on NYC buyers is the requirement to sign a buyer's agency agreement before their agent can show them properties. This agreement formally establishes the relationship between the buyer and their agent.

Specifying Compensation

Crucially, this agreement must clearly state how the buyer's agent will be compensated. This increases transparency, ensuring buyers understand the cost of their agent's services from the outset.

Negotiating Compensation

While the agreement specifies the commission, buyers can still negotiate for the seller to contribute towards or cover this cost as part of the overall offer negotiation. The key difference now is that the amount is flexible and explicitly discussed, rather than being a predetermined split funded solely by the seller's listing commission.