Real Estate Board of New York (REBNY) is implementing a rule change starting this year which is set to significantly alter the way in which buyer agents nationally are compensated for their services. Starting on January 1, instead of the listing broker paying the buyer agent, the seller must pay the commissioned directly.
This change is highly significant as it is set to offer a major shift in the real estate industry with regards to compensation of buyer agents. Moreover, it has major implications for both brokers and consumers alike. For the consumer, it means that sellers are now assuming the responsibility of compensating the agents, and the buyers may end up having to cover the costs associated with the services provided by the buyer agent. Additionally, it may cause a decrease in buyer agents willing to work with clients who are unwilling to pay high commission costs.
REBNY rule changes in 2021 include:
• Buyer Agents will be paid directly by Sellers: Buyers will no longer have to pay commissions to listing agents, rather the seller is set to responsible making commission payments
• Impact on Consumers: The new rule may eventually lead to higher commission costs for buyers and less buyer agents being available for individual clients due to high commission costs
• Major Implications for the Industry: This significant change has the potential to be a major game-changer for how buyer agents are compensated in the real estate industry. It will create a new set of dynamics between buyers and sellers and redefine how compensation works for buyer agents.
You can read this full article at: https://www.housingwire.com/articles/rebny-to-require-sellers-to-directly-pay-buyers-agent/(subscription required)
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