Spring is springing across NYC, and in real estate, we are hopeful that April will finally fulfill the promise we had going into 2024. While the market seemed to fizzle in March, the real estate topic dominating headlines here and nationwide has been broker commissions. If you haven't heard by now, the National Association of Realtors and several of the mega-brokerages (including Compass) just recently settled class action suits alleging collusion in setting broker commissions. The settlements provide that MLS's can no longer advertise buyer broker commissions, though such commissions can continue to be offered by sellers or advertised elsewhere, and buyer's agents will need to have signed buyer contracts at the onset of their representation.

 

While many agents have been outspoken about the merits of these cases and what impact they will have on the industry, I'm not an antitrust expert nor do I have a crystal ball. If approved, these settlements will go into effect in July and only then can we begin to understand the implications for the industry. I continue to believe in the tremendous value of an experienced and ethical buyer's agent, particularly in a market like New York where the stakes are higher and the process is complicated. Good agents will not only survive but may ultimately benefit from raising of the bar.

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