NYC Commission Changes - Transparency and the MLS

A Key Change for Transparency

Another significant outcome of the NAR settlement impacting NYC real estate involves the Multiple Listing Service (MLS). As of August 2024, buyer agent commission offers are no longer displayed on MLS listings.

Why the Change?

This rule aims to prevent 'steering' – the practice where agents might subtly guide clients towards properties offering higher commissions, potentially limiting a buyer's choices based on the agent's potential earnings rather than the buyer's best interests.

Impact on Buyers and Agents

Buyers now need to have clear discussions with their agents about how they will be compensated, often through a formal buyer representation agreement. While this requires more upfront conversation, the goal is a more transparent process where buyers can be confident their agent is prioritizing their needs. Sellers still decide whether to offer buyer agent compensation, but this offer happens off the MLS.