Do Real Estate Agents Split Commission in NYC?

Do Real Estate Agents Split Commission in NYC? https://www.hauseit.com/do-real-estate-agents-split-commission-nyc/
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Do real estate agents split commission in New York City? We demystify this topic in this following video. I'm Chris at Hauseit. In case you're not familiar with the platform, Hauseit is the largest For Sale by Owner and Buyer Commission Rebate company in New York City established in 2014. If you have any questions about buying and selling real estate in New York City and want to learn how you can save money on closing costs and broker commission, please check us out at https://www.hauseit.com.

So do real estate agents have to split commission? Well the answer depends on whether there is a pre-existing co-brokerage agreement in place. For most transactions, this co-brokerage agreement takes form in the shape of a universal co-brokerage agreement sent by the MLS. In New York City, the default MLS is the REBNY RLS which has a universal code brokerage agreement which is signed by all member firms before they join. If there isn't a pre-existing co-brokerage agreement in place then the buyer's agent may simply be out of luck if he or she is not a member of the same MLS organization as the listing agent.

To be clear, even though the listing agent does not have the split commission unless there is a pre-existing co-brokerage agreement in place, the listing agent still must respect the buyers right to work with the agent of his or her choice. This could conceivably mean that the buyer will work with an agent who will not be compensated by the listing agent because the buyer's agent does not have an existing co-brokerage agreement in place with the listing agent.

How commissions are actually split vary depending on the MLS and the specific nature of the agreement. For example, in New York City, the Real Estate Board of New York requires per its co brokerage agreement that commissions are split at least equally in favor of the buyer's agent. In the Hudson Valley, the HGMLS, otherwise known as the Hudson Gateway Multiple Listing Service, only requires that the amount of the coke Brokerage or their commission offered to the buyer's agent is positive.

This means that a single dollar could be sufficient to offer as a buyer agent commission in the HGMLS. Similarly in the Brooklyn MLS, commissions do not need to be split equally or at least equally in favor of the buyer's agent. We've heard from many agents that are members of the Brooklyn MLS that buyer agents are typically offered only 1% commission. This does not mean that the listing agent will also make only 1%.

As discussed co-broking does not necessarily need to be equal depending on the specific MLS rules. We hope you found this video to be helpful, and if you have any questions please feel free to leave a comment below and hit subscribe. If you like this content we do come out with content regularly and of course if you do wish to learn more about how to buy and sell real estate in New York City and how to save commission while doing so please don't hesitate to reach out. Thank you so much and have a great day!

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