"Challenges and Changes in Real Estate Commissions: What Home Sellers Need to Know"

Recent legal settlements in the real estate industry are changing the way commissions are paid, but the impact may be slow. In New York City, most agents are affiliated with the Real Estate Board of New York, which has changed its policies regarding commission payments to buyer's agents. If the agreement was signed after Jan. 1, the seller can dictate the offer of compensation for the buyer's agent. While the recent legal developments could provide an opportunity to renegotiate commission rates, there is currently no requirement to reduce commissions payable to brokers in New York or elsewhere.