The New York real estate market in 2025 is a minefield for the unprepared. Limited housing in Queens and Brooklyn continues to drive up prices, but high interest rates force buyers to calculate every dollar. However, the real shock comes from new regulations that have turned the rules of working with agents upside down. If you plan a transaction this year, you must know these rules.
In this dynamic environment, “it’ll be fine” no longer works. Professional and, above all, transparent advice becomes crucial.
The Most Important Change: The End of “Automatic” Commissions
As of August 17, 2024, new, stringent rules regarding real estate agent compensation are in effect across the United States. This is the result of nationwide reforms aimed at increasing market transparency. What does this mean for your wallet?
Agent compensation is now fully negotiable. Gone are the days when commissions were “rigidly” suggested by local associations or MLS (Multiple Listing Service) systems. Today, every rate is the result of an individual agreement.
- MLS is silent on money: The MLS system no longer publishes information about the commission a seller offers to a buyer’s agent. All arrangements are made outside the system, through direct negotiations.
- You decide: The client hiring the agent (both seller and buyer) is responsible for determining the terms of their compensation.
What does this mean for you in practice?
These changes give you greater control but also impose a new obligation: the need to fully understand the agreements you sign.
For Sellers – Greater Power: You now have full control over the transaction budget. You decide:
- Do you pay only your agent?
- Do you choose to also cover the buyer’s agent’s compensation (which may attract more offers)?
- Or do you leave this issue open for negotiation at the table? This flexibility allows for better management of your sales strategy but requires conscious planning.
For Buyers – No More “Just Looking”: Here, the change is most noticeable. You are required to sign an agreement with an agent (Buyer Representation Agreement) before you start viewing homes. You must clearly know how much your agent’s service costs and who will pay for it. This ends ambiguity but also demands greater responsibility.
In this chaos, you need a guide
In the new legal environment, an agent’s experience and ethics are more important than ever before. Errors in interpreting new regulations can cost thousands of dollars or lead to a transaction falling through.
Jarosław Kaszuba Licensed Real Estate Broker | Certified Real Estate Agent EXIT All Seasons Realty
Thanks to his excellent knowledge of the local Queens and Brooklyn market and proficiency in current legal regulations, Jarosław Kaszuba ensures security at every stage – from valuation, through complex commission negotiations, to finalization with the notary.
At EXIT All Seasons Realty, we guarantee:
- Absolute compliance with Department of State regulations.
- Full transparency of compensation (no hidden costs).
- Client education – we explain the new law in simple language.
- Professional representation of your interests, whether you are buying or selling.
Summary: Don’t risk it on your own
New York is still an excellent place to invest, but the market has become more legally demanding. The changes from August 2024 did not eliminate commissions – they streamlined them. Now you have the right to decide, and the agent has an obligation to advise honestly.
Don’t let unfamiliarity with new regulations affect your transaction.
PLANNING A MOVE IN THE REAL ESTATE MARKET? Consult a licensed broker who operates in accordance with the new guidelines.
