Sellers Have More Power Over Commissions Now — But Don't Outfox Yourself 🤝

Sellers Have More Power Over Commissions Now — But Don't Outfox Yourself 🤝

The real estate industry went through one of its biggest changes in decades in 2024 — and if you're thinking about selling your Long Island home, this directly affects you. Most sellers we talk to haven't heard about it yet. That's a problem, because misunderstanding this change can end up costing you more than the commission you were trying to avoid.

Here's what happened, and what it actually means for your bottom line.

The Old Rules Are Gone 📋

For decades, the standard practice in real estate required sellers to offer compensation to a buyer's agent upfront through the MLS — before a single offer came in. It was baked into the system and largely non-negotiable. Sellers paid both sides of the commission almost automatically, whether they fully understood it or not.

That changed in 2024 following a landmark legal settlement that reshaped how buyer's agent compensation works nationwide.

What the New Rules Actually Mean 💡

Under the new rules, sellers can no longer advertise or offer buyer's agent compensation through the MLS listing. That door is closed. However, buyer's agent compensation can still be negotiated — it simply has to happen as part of the offer and contract process, not upfront as a listing term.

In practice, this means a buyer or their agent may include a request for seller-paid compensation as part of their offer, and the seller can choose to accept, counter, or decline it — just like any other contract term. You have more control than before, but the conversation now happens at the negotiating table, not before the home even hits the market.

Here's What Many Sellers Get Wrong ⚠️

When sellers hear they no longer have to advertise a buyer's agent commission, a lot of them immediately think: great, I'll just refuse it entirely and pocket the savings. It sounds logical. In practice, it often backfires — sometimes badly.

Here's why. Most buyers working with an agent are factoring the total cost of their purchase into what they can offer. If a buyer has to cover their agent's fee entirely out of pocket on top of a down payment and closing costs, they may simply offer less — or walk away from your listing altogether in favor of a seller who's willing to negotiate that term.

In a market with other available inventory, your home gets skipped. Or you get an offer, but it's lower than it would have been. Either way, the commission you "saved" comes right back out of your net.

The Math That Actually Matters 💰

The only number that matters is what ends up in your pocket at closing — after all fees, contributions, and costs are accounted for. That calculation is almost never as simple as "I didn't pay the buyer's agent, therefore I kept that money."

A home that attracts multiple competing offers because it was negotiated correctly will almost always net more than a home that sat on the market because buyers and their agents steered toward easier opportunities. Competition drives your price up. Friction drives it down.

We've seen sellers leave more money on the table trying to avoid a buyer's agent contribution than they ever would have paid.

When It Does Make Sense to Push Back 🎯

This isn't an argument that you should automatically agree to every buyer's agent compensation request without question. Every offer is different, and there are absolutely situations where it makes sense to negotiate that term or structure it differently.

A cash buyer with no agent? Different conversation. A situation where the buyer is willing to cover their own agent in exchange for a price adjustment? That can work too. The point is that each offer needs to be evaluated on its full merits — not approached with a blanket policy of never contributing to the buyer's side.

Turning down a buyer's agent request might feel like a win — but if it costs you the deal or drives the price down, it wasn't.

That's exactly the kind of analysis we provide on every offer. We look at the complete picture and tell you what you're actually walking away with — not just the headline number.

Why an Experienced Broker Matters More Now 🏡

Before these changes, the commission structure was largely standardized and settled before negotiations even began. Today, it's a live negotiating variable on every single transaction. The ability to evaluate offers holistically and advise sellers on their true net across different compensation structures is a skill that directly impacts your outcome.

At Vintage American Realty, we walk you through every offer line by line and focus on one thing: maximizing what you actually take home.

The Bottom Line ✅

Sellers on Long Island have more flexibility over commission structures than at any point in recent history. That flexibility is genuinely valuable — but only when it's used strategically, not reflexively. Don't let the idea of "not paying the buyer's agent" become a negotiating blind spot that ends up costing you a deal or thousands of dollars in net proceeds.

The goal was never to pay less commission. The goal is to walk away with more money. Those aren't always the same thing.

Ready to Talk? 📞

We'd love to walk you through how commissions work in today's market and what it means for your bottom line — no pressure, no obligation.

Thomas Brady SFR, e-PRO, SRES, BPOR, C-REPS Licensed Associate Real Estate Broker / Director of Operations Notary Public | Retired N.Y.P.D. Lt. | U.S. Air Force Veteran 🇺🇸

Vintage American Realty LLC 1551 Montauk Hwy, Suite E • Oakdale, NY 11769 📞 631-682-8660 ✉️ TomBradyHomes@Gmail.com 🌐 VintageAmericanRealty.com