By Debra Danner
For Capital Region Independent Media
In the world of real estate, staying informed about industry regulations is crucial. Recently, the National Association of Realtors (NAR) implemented a ruling regarding co-broke listings on the Multiple Listing Service (MLS) in New York. This ruling has sparked discussions and raised questions among real estate professionals and clients alike.
The NAR ruling states that listings on the MLS in New York cannot be designated as “co-broke.” Co-broke, short for cooperative brokerage, refers to a practice where the listing agent offers to share a portion of their commission with a buyer’s agent. This practice has been common in real estate transactions, benefiting both agents and clients by encouraging cooperation and facilitating smoother transactions.
However, with the recent ruling, listings on the MLS in New York cannot explicitly state that they offer co-broke commissions. This means that buyers’ agents may not see these listings as immediately attractive since they might assume that no co-broke commission is offered.
So, what does this mean for buyers, sellers and real estate agents in New York? Firstly, it’s important for sellers to understand that while their listing won’t include a co-broke designation, it doesn’t mean they can’t offer a commission to a buyer’s agent. Sellers can still negotiate with their listing agent to include a buyer’s agent commission as part of their listing agreement.
For buyers, it’s essential to communicate with your agent about the commission structure. Your agent can reach out to the listing agent to clarify if a co-broke commission is available. In many cases, most sellers are still willing to offer a commission to the buyer’s agent, even if it’s not explicitly stated on the MLS.
Real estate agents need to be transparent with their clients about the changes in the co-broke listing rules. It’s crucial to explain to sellers that offering a commission to the buyer’s agent can attract more potential buyers and increase the likelihood of a successful sale. Similarly, agents need to inform buyers that they can still benefit from the expertise and services of a buyer’s agent, even if the co-broke commission is not explicitly listed.
In conclusion, while the NAR ruling regarding co-broke listings on the MLS in New York has changed how commissions are displayed, it hasn’t eliminated the practice of offering commissions to buyer’s agents.
By staying informed and communicating effectively, all parties involved in a real estate transaction can navigate these changes and continue to benefit from cooperative brokerage practices.
Debra Danner is an associate broker and Catskill regional manager for Coldwell Banker Prime Properties, based in Greenville.
