How REBNY's new rules affect New York Home Sellers?

Will NAR Settlement and REBNY rules changes result in more transparency in Staten Island real estate transactions?  Let’s hope so!  The NAR settlement may be confusing to buyers, sellers and even Realtors, but behind every cloud is a silver lining.  The new rules will likely stop the “stranglehold” on buyer’s agent compensation here on Staten Island. This was a bad practice that not only made trusting client’s listings less attractive, but it also potentially reduced competition by being a factor in keeping out big NYC firms such as Corcoran and Elliman. 

What's REBNY and What Are the New Rules?

REBNY plays a significant role in the real estate landscape of New York City. Now, they've introduced new rules aimed at enhancing transparency and fairness in the market updated in the R.L.S. Universal Co-Brokerage Agreement. 

Enhanced Transparency in Pricing

One of the key changes revolves around pricing transparency. REBNY has implemented measures to ensure that listings are presented more accurately. Sellers will now have to provide comprehensive information about their property, including any renovations or updates, to ensure potential buyers have a clear understanding of what's on offer.

Improved Communication Channels

Communication plays a large part in any real estate transaction and REBNY's new rules emphasize this aspect. Sellers can expect more open and timely communication from their real estate agents, ensuring that they are kept informed at every step of the way.  Clear offers of compensation can make the negotiation process smoother for all parties involved.

Impact on Marketing Strategies

With the new rules in place, sellers may need to adjust their marketing strategies accordingly. The focus is now on providing accurate and detailed information to potential buyers, rather than relying solely on flashy marketing tactics. This shift could lead to more qualified leads and ultimately result in faster sales. 

Policy Changes

Participants of the Residential Listing Service (RLS) are now prohibited from utilizing listing management technologies that allow users to search listings based on compensation levels. This change aims to assist agents in fulfilling their fiduciary duties to their clients by ensuring that they are presented with properties that align with their preferences, rather than properties offering the highest compensation rates.

What is the difference between REBNY and N.A.R.?

REBNY, established during the 1990s, while N.A.R. was established in 1896. This organization, responsible for overseeing licensing prerequisites and establishing regulations within New York City's real estate sector, represents a vast community of over 15,000 local real estate experts and more than 800 brokerage firms. Additionally, REBNY manages the Residential Listing Service (R.L.S.), granting members exclusive access to property listings.

However, the N.A.R. ruling still holds significance for REBNY and its members. According to Sonia Gilbukh, an assistant professor of real estate at CUNY Baruch College, Zicklin School of Business, "Everyone is going to be affected by the ruling because they’re going to be worried about being sued in the same way."

Effects of N.A.R. in the Real Estate community

Experts predict that New York City's real estate market might not see the same sweeping changes as other regions. Even if new regulations prevent sellers' agents from offering commissions to their counterparts, 'in practice, the money still comes from the seller,' says Ms. Gilbukh. Historically, buyers' agents earned half of a standard 3 percent commission. 'Anything less than that would jeopardize your sale, so most sellers would still offer the standard,' explains Ms. Gilbukh. 'Lowering the commission on the buyer's side could deter potential buyers, impacting both the sale price and time on the market.