If you have bought or sold a home before, you may assume you understand how real estate commissions work. However, major changes went into effect in August 2024 following the NAR settlement, and those changes directly impact both buyers and sellers in Westchester County and the Bronx.

This blog breaks down what changed, what stayed the same, and what these updates mean for your bottom line.

How Real Estate Commissions Worked Before

Before the settlement, sellers typically agreed to a total commission that was split between the listing agent and the buyer’s agent. The buyer’s agent compensation was usually offered through the MLS, and buyers rarely had to pay their agent directly.

This system made it easier for buyers to work with an agent and ensured that qualified buyers could access most homes on the market.

The Two Major Changes After August 2024

The settlement introduced two important changes. First, buyer agent compensation is no longer advertised through the MLS in the same way. Second, buyers are now required to sign an agreement outlining how their agent will be compensated before touring homes.

These changes shifted more responsibility onto buyers while also forcing sellers to think carefully about how they structure their listings.

What This Means for Sellers

Sellers now have more flexibility, but also more decisions to make. While offering buyer agent compensation is no longer required, choosing not to do so can limit the number of qualified buyers who can afford your home.

In many cases, buyers simply do not have extra cash available to pay their agent out of pocket. When that happens, fewer buyers compete for your property, which can reduce your final sale price.

Why Offering Buyer Agent Compensation Can Help You Net More

One of the biggest misconceptions is that not offering buyer agent compensation saves money. In reality, limiting buyer access can cost far more than the commission itself.

A real cost analysis often shows that paying a buyer agent commission may cost fifteen thousand dollars upfront, but not offering it can lead to thirty to forty thousand dollars in lost value due to reduced demand and weaker offers.

What Is Negotiable and What Is Not

Commissions have always been negotiable, and that has not changed. What matters most is how the overall strategy is structured. Every home, price point, and market condition is different.

A strong strategy considers buyer affordability, competition, and current market behavior rather than focusing on commission alone.

What I Charge and Why Transparency Matters

I believe in being upfront about commissions and explaining exactly what services are included. Clear communication helps sellers make informed decisions and avoid surprises later in the process.

My goal is not just to list a home, but to negotiate the strongest possible outcome based on data, experience, and market conditions.

Get a Personalized Breakdown for Your Home

If you are thinking about selling or just want to understand how these changes affect you, I offer a free home valuation and market analysis. This includes a clear explanation of commission options and how each choice may impact your final results.
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