How Does the NAR Settlement Affect NYC Home Sellers and Buyers?

The changes engendered by the NAR (the National Association of Realtors) went into effect on Saturday. To cut through the confusion caused by sensationalist headlines, here in a nutshell, is how they affect consumers:

Sellers: It's been made clear that sellers can negotiate the fees they pay their agents, and specify whether or not (and how much) they pay the agents for their homes' buyers. FYI, this has been in effect in NYC since Jan. 1. The vast majority of sellers are still paying buyers' agents, and at similar percentages to before.

Buyers: Buyers' agents will be asking for their clients to sign Buyer Agent Agreements. These agreements state that if the seller is not paying the buyers' agent's commission (or if it's not at a certain rate) the buyer will pay their agent's commission (or make up the difference).

As we've mentioned in the past, New York city real estate agents aren't members of or governed by NAR. We belong to REBNY, the Real Estate Board of New York. Still, these new rules are influencing how we do business here. While right now REBNY isn't requiring signed Buyer Agent Agreements, that could change. Many brokerages (like Compass) are encouraging their agents to start using them now, in preparation.