New NYC Real Estate Commission Rules Explained
What Buyers and Sellers Need to Know Today
Real estate commissions in New York City look different than they did just a few years ago. While the headlines were loud when the rules first changed in 2024, the bigger shift has been quieter and more practical. How buyers hire agents, how sellers structure deals, and how commissions are discussed are all more transparent now.
Here’s what the current commission rules actually mean, without the noise.
What Changed and What Did Not
Historically, sellers paid a single commission that was split between the listing agent and the buyer’s agent. That structure is no longer assumed.
Today, commissions are fully negotiable and must be clearly disclosed. Sellers are no longer required to offer compensation to a buyer’s agent, and buyers must have a written agreement in place with their agent outlining how that agent will be paid.
What did not change is this: good representation still matters, and the best outcomes still come from thoughtful strategy, not shortcuts.
What This Means for Buyers
Buyers now must sign a representation agreement before working with an agent. That agreement explains the scope of representation and how compensation works.
In practice, this creates clarity. Buyers know exactly who represents them and what they are paying for. In most transactions, sellers still choose to offer compensation to a buyer’s agent because it expands the buyer pool, brings in higher offers, and keeps deals moving smoothly. In others, buyers and agents structure compensation differently depending on the property and the negotiation.
The key shift is awareness and flexibility. Buyers are more engaged in the process, and conversations that used to happen quietly are now upfront and transparent.
What This Means for Sellers
Sellers now decide whether to offer compensation to a buyer’s agent, and if so, how much. This flexibility can be an advantage when used strategically.
In Brooklyn, we see that listings offering clear and competitive buyer agent compensation tend to attract more qualified buyers and move more efficiently. Listings that do not offer compensation often narrow the pool, which can affect demand and leverage.
The takeaway is not that one approach is right for every seller. It is that commission structure is now part of the pricing and marketing strategy, not an afterthought.
My Take as a Brooklyn Agent
Buyers still want and need representation. Most prefer to build that cost into the transaction rather than pay it out of pocket. Sellers, in turn, tend to achieve stronger results when their listing appeals to buyers who are working with an agent. Those buyers are typically more prepared, better advised, and more comfortable competing.
As a result, many sellers continue to offer buyer agent compensation. Not because they have to, but because it broadens the buyer pool and supports higher pricing. In most Brooklyn transactions, this structure still works well for everyone involved.
What has changed is transparency. Compensation is discussed earlier. Agreements are documented. There is more clarity around who represents whom and how everyone gets paid.
The process is largely the same. The paperwork is heavier. The conversations are more upfront. And for buyers and sellers who understand how the market actually functions, the outcomes have not suffered.
Work With Craig
If you are buying or selling in Brooklyn, the goal is not to focus on commission headlines. It is to understand how the rules work today and use them to your advantage.
If you want to talk through how these changes affect your specific situation, I am always happy to have that conversation.
