What Long Island Homebuyers Must Know About the 2024 NAR Commission Rule Changes and Buyer Agent Agreements

If you’re planning to buy a home on Long Island, the rules of the game have officially changed — and understanding those changes could save you from costly surprises. In 2024, the National Association of Realtors® (NAR) rolled out landmark policy changes that reshaped how buyer agents are hired, disclosed, and compensated across the country. Whether you’re a first-time buyer in Massapequa or a move-up buyer eyeing the North Shore, here’s what you need to know before you start touring homes.

What Sparked the NAR Settlement?

In 2024, the National Association of Realtors agreed to a $418 million settlement in a class action case alleging antitrust violations related to residential real estate commissions. The findings concluded that NAR’s cooperative compensation policies incentivized buyers’ agents to steer clients toward homes with higher commissions and resulted in sellers paying inflated buyer’s agent fees. The result? A sweeping overhaul of how buyer representation works — nationwide, and right here on Long Island.

The Two Major Rule Changes That Took Effect August 17, 2024

The two major rule changes from the August 2024 implementation are: no more buyer agent commissions on MLS — sellers and listing agents can no longer advertise compensation offers for buyer agents on the MLS — and written buyer agreements are now required, meaning buyers must sign a written agreement outlining compensation and services before touring homes with an agent.

1. No More Commission Offers on the MLS

Effective August 17, 2024, home sellers are no longer automatically responsible for paying commissions to both their own agent and the buyer’s agent, and a seller’s agent can no longer specify on a Multiple Listing Service (MLS) how much the buyer’s agent will be paid. Buyers and their agents will now not formally know ahead of putting in an offer if, or how much, a seller will be willing to pay toward their buyer agent commission. Who and how much each party pays will now become part of the offer and negotiated in the final terms of the purchase and sale agreement.

This is a significant shift for Long Island buyers. In the past, the seller’s listing agent would post an automatic commission split on the MLS, and buyers rarely had to think about their agent’s compensation. That era is over.

2. Written Buyer Agent Agreements Are Now Mandatory

Written buyer agreements benefit consumers because they clearly and transparently outline the services an MLS Participant will provide and how they will be compensated. As of August 17, 2024, an MLS Participant “working with” a buyer is required to enter into a written agreement with the buyer prior to touring a home, including both in-person and live virtual tours.

Without a signed agreement, agents won’t be able to tour homes with potential buyers, which could lead to delays or missed opportunities in a competitive market. On Long Island — where inventory can be tight and bidding wars are common — being prepared with a signed buyer agreement before you start your search is more important than ever.

What Must Be Included in a Buyer Agent Agreement?

Under the new rules, a buyer agency agreement is not just a formality — it’s a legally binding contract with specific required provisions. The written agreement with the buyer must include: (i) the specific disclosure of the amount or rate of compensation the broker will receive and how this amount is determined; (ii) the compensation cannot be open-ended and shall be objective, examples being a flat fee, a percentage or hourly rate; (iii) terms that prohibit the agent from receiving any compensation that exceeds the amount agreed to; and (iv) an obvious statement that all fees and commissions are negotiable and not set by law.

The buyer’s agency agreement will outline what services buyer agency provides, the commission that they charge for those services, the length of the agreement, and that the buyer is ultimately responsible to ensure that the agent is compensated for their services. Importantly, the settlement changed how compensation is disclosed, negotiated, and documented during a real estate transaction — it did not eliminate commissions altogether.

What This Means for Long Island Buyers Specifically

Long Island’s real estate market is uniquely complex. The Gold Coast communities of the North Shore — Great Neck, Manhasset, Old Westbury, Oyster Bay, Locust Valley, Cold Spring Harbor — operate on entirely different dynamics than the South Shore waterfront towns like Massapequa, Merrick, and Long Beach. Navigating these hyperlocal nuances requires an experienced professional who understands not just the new rules, but the specific neighborhoods, school district premiums, and pricing trends that define Long Island real estate.

Under the new rules, buyers on Long Island should be prepared to discuss compensation openly with their agent before the first showing. Sellers may still choose to offer a buyer agent concession as part of negotiations, but it is no longer guaranteed or visible on the MLS. This means your agent’s ability to negotiate on your behalf — both for the home price and for commission concessions — matters more than ever.

Tips for Long Island Buyers Navigating the New Rules

• Sign your agreement before you tour: Don’t wait until you’ve found a home you love. Have your buyer agreement reviewed and signed before your first showing to avoid delays.
• Know what you’re agreeing to: The agreement must include a conspicuous statement that clarifies broker fees and commissions are not set by law, emphasizing the client’s right to negotiate the terms of compensation.
• Understand seller concessions are still possible: Seller commissions only cover the listing agent by default. Buyer agent compensation is a separate negotiation between the buyer and their agent, though sellers can still choose to offer it.
• Choose a certified, experienced buyer’s agent: The new landscape rewards buyers who work with knowledgeable professionals who can advocate effectively in negotiations.

Work With a Certified Buyer’s Agent Who Knows Long Island

Navigating these new rules is far easier with the right expert by your side. Lisa Caputo, a Licensed Broker Associate based in Massapequa Park, is a certified buyer’s agent who has earned multiple real estate awards, including Rookie of the Year and Top Salesperson. Her focus isn’t on the number of homes she’s sold, but on the value she can bring to her clients. She takes pride in delivering a personalized, client-centered approach because your goals are her priority — there is no “one size fits all” in real estate.

She takes pride in advising her clients through the home buying and selling process. Buying a home can be a very overwhelming and stressful experience, but the right guidance from Lisa will empower you with the appropriate information and make the process as easy as possible with the least stress possible.

If you’re ready to start your home search and want a trusted professional who understands both the new NAR rules and the unique dynamics of the Long Island market, connect with a dedicated Buyer Agent on Long Island, NY who will walk you through every step — from signing your buyer agreement to closing on your dream home.

The rules have changed, but the goal remains the same: finding the right home at the right price, with someone firmly in your corner. Don’t navigate this new landscape alone — reach out to Lisa Caputo today at (516) 695-9512 and take the first step toward homeownership with confidence.

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