NYC Commission Changes - What Sellers Need to Know

The Old Way vs. The New Way

Following a major settlement by the National Association of Realtors (NAR), the rules around real estate commissions in NYC changed significantly in August 2024. Previously, sellers typically paid a 5-6% commission, automatically split between their agent and the buyer's agent.

No More Automatic Splits

The biggest change is the elimination of this automatic split. Now, sellers negotiate their listing agent's commission separately. They also decide whether to offer compensation to a buyer's agent and how much. This offers sellers more control and flexibility over costs.

Considerations for Sellers

While sellers gain negotiation power, they must consider the potential impact of not offering a buyer's agent commission. It might influence the number of buyers who view their property, as buyers may need to pay their agents directly if no compensation is offered by the seller. Discussing strategy with your listing agent is crucial in this new landscape.