You may have heard about upcoming practice changes by the National Association of Realtors (NAR) that go into effect on August 17, 2024. What does it all mean? Let’s break it down.
There are two key changes:
1. Buyer Representation Agreements:
Every buyer represented by a NAR-affiliated agent will now be required to sign a Buyer Representation Agreement before touring properties—either virtually or in person. This formalizes the relationship between the buyer and the agent/broker.
2. Buyer Agent Compensation Off-MLS:
Buyer agent compensation can no longer be advertised on the MLS. Any offers of compensation must be handled outside of the MLS—through private marketing, emails, social media, direct communication, websites, etc.
What Does This Mean for Sellers?
Sellers still have the option to offer compensation to a buyer’s agent—this hasn’t changed. Doing so can still help attract more buyers and improve a property’s marketability.
However, compensation terms can’t appear in the MLS but can be shared in other ways. Sellers may also offer concessions to cover a buyer’s closing costs, which can still be listed in the MLS.
Bottom line for sellers: In practice, not much will change, and offering buyer-side compensation may continue to be in your best interest.
What Does This Mean for Buyers?
In New York, this is a new legal requirement. Starting August 17, buyers must sign a written agreement with an agent before touring homes. This doesn’t apply to initial conversations or casual questions—only when viewing properties.
Other states have already adopted this practice, so while it’s new here, it’s not unprecedented.
The Bottom Line
Agent compensation is still fully negotiable, as it always has been. While some buyers may technically need to pay their agent’s commission if a seller doesn’t offer it, in most cases—especially in Westchester County—I believe sellers will continue to pay buy-side compensation. Doing so attracts more buyers and maximizes the likelihood of achieving the best sale price.
If you’re a buyer or seller wondering how the NAR settlement may affect you, I’d be happy to talk through it with you. Reach out to Amie Pisano.
📧 Email: [email protected]
📞 Phone: 914-715-2632
