What is the average real estate commission in New York?
Navigating real estate commissions in New York's diverse market, from the bustling streets of Manhattan to the serene landscapes of the Adirondacks, requires a strategic approach. Commission rates can fluctuate based on location, property type, and the level of service offered by agents. The competitive landscape means sellers have choices, but understanding the value a top agent brings is paramount. The 2024 NAR settlement is reshaping buyer agent compensation, making it crucial for New York sellers to proactively discuss commission structures with their listing agents to ensure a mutually beneficial agreement. Sellers should be prepared to evaluate various commission models and understand how these changes might impact their net proceeds.
Key Statistics
New York — Real Estate Commission Overview
New York Real Estate
Commission Rates & How to Save
In New York's fast-paced market, negotiating real estate commissions requires a deep understanding of local inventory levels and buyer demand. Discount brokerages and limited-service options are gaining traction, particularly in areas with high sales volume. However, sellers should carefully weigh the upfront savings against the potential for a higher sale price and a smoother transaction facilitated by a full-service agent. Consider focusing on agent experience and marketing strategies specific to your property type and location when assessing value versus cost.
New York Real Estate Commission at a Glance
New York Commission Breakdown: Who Pays What
Real estate commission in New York is typically paid by the seller at closing and split between the listing agent and buyer's agent. Here's how it works.
Listing Agent Commission
The listing agent in New York typically earns 2.25-2.75% of the sale price. This covers marketing, photography, MLS listing, open houses, negotiations, and guiding the sale to closing.
Buyer's Agent Commission
The buyer's agent in New York typically earns 2.25-2.75%. Post-NAR settlement, this is now negotiated directly between the buyer and their agent, not set by the seller.
Brokerage Split
Agents don't keep their full commission — they split it with their brokerage (typically 50/50 to 70/30). The actual split depends on the agent's experience and brokerage agreement.
Always Negotiable
Commission rates in New York are never fixed by law. You can negotiate lower rates, especially on higher-priced properties, repeat transactions, or when using a discount brokerage.
How the 2024 NAR Settlement Affects New York Commissions
New York's high-value market amplifies the impact of commission changes; buyer rebates and fee transparency have increased significantly post-settlement.
No More MLS Commission Offers
Sellers can no longer advertise buyer agent compensation through the MLS. This means buyer agent fees are negotiated separately.
Written Buyer Agreements Required
Buyers must sign a representation agreement with their agent before touring homes. This agreement specifies the agent's compensation.
More Room to Negotiate
Both sellers and buyers now have more flexibility to negotiate commission rates. The settlement has created a more competitive landscape for agent fees in New York.
6 Ways to Save on Real Estate Commission in New York
Negotiate Your Listing Agent Rate
Don't accept the first commission rate offered. In New York, listing agent rates of 2.25-2.75% are average — but many agents will negotiate, especially on higher-priced homes or if you're also buying.
Use a Discount Brokerage
Consider discount options like Redfin, Clever Real Estate, Houzeo, Prevu. These brokerages offer lower commission rates (often 1-1.5% listing fee) while still providing MLS access and core services.
List on Flat-Fee MLS
A flat-fee MLS service ($300-$500) gets your home on the MLS without a traditional listing agent. You handle showings and negotiations yourself, saving 2.25-2.75% on the listing side. Flat-fee MLS is well-established in your market.
Virtual Stage Your Listing Photos
Professional-looking photos are the #1 factor in attracting buyers online. Virtual staging at $0.10/photo gives your listing magazine-quality visuals — helping FSBO and discount listings compete with full-service agents.
Offer Competitive Buyer Agent Pay
While you can now choose what to offer the buyer's agent, offering competitive compensation (around 2.25-2.75%) ensures maximum buyer exposure. Lowballing here may reduce the pool of interested buyers.
Sell When Demand Is High
In a hot New York market, agents may accept lower rates because homes sell faster with less effort. Time your listing strategically — spring and early summer typically see the most buyer activity.
Physical Staging vs Virtual Staging: Impact on Your Commission Savings
Spending thousands on physical staging eats into the savings you get from negotiating lower commissions. Virtual staging delivers the same buyer appeal at a fraction of the cost.
Physical Staging
- Cost: $2,000-$5,000+/month
- ROI: Eats into commission savings
- Timeline: Days to set up
Virtual Staging
Best Value- Cost: $0.10 per photo
- ROI: Maximizes your savings
- Timeline: Under 60 seconds
Understanding Real Estate Commission in New York
Understanding the landscape of the **new york real estate commission** is to understand a tale of two, or even ten, distinct markets. In the vertical canyons of Manhattan, where co-op board approvals add a labyrinthine layer of complexity, an agent's expertise and connections command a premium. The commission structure here reflects the sheer difficulty and high stakes of navigating these transactions. Contrast this with the rolling hills of the Hudson Valley or the lakeside communities near Syracuse, where market dynamics are different. Here, seasonality plays a huge role; a home listed in the vibrant fall foliage season may have different negotiation leverage than one listed in the deep snows of February. Sellers must recognize that what an agent charges to sell a Hamptons waterfront estate is fundamentally different from the fee structure for a starter home in Buffalo, reflecting not just price but the required marketing sophistication, network, and negotiation prowess.
Following the landmark NAR settlement, the mechanics of compensation have been irrevocably altered, and New York's market is adapting with characteristic speed. The most significant shift is the uncoupling of commissions; sellers no longer advertise a cooperative compensation offer to buyer agents on the Multiple Listing Service (MLS). This has forced a major behavioral change. Top brokerages like Corcoran and Douglas Elliman have been proactively training their agents on articulating their value directly to buyers and securing exclusive buyer-broker agreements. For sellers, this means conversations about the **real estate agent commission new york** professionals earn are now more nuanced. While you are primarily negotiating the **listing agent commission**, you must also strategically consider whether to offer concessions to a buyer's agent to attract the largest possible audience for your property, a critical decision in both hyper-competitive and slower-moving sub-markets.
Not all brokerage models are created equal, and the service you receive is directly tied to the fee structure. Premier, full-service brokerages in New York City—think Brown Harris Stevens or Sotheby's International Realty—justify their rates with an arsenal of resources: dedicated marketing departments, global affiliate networks for reaching international buyers, and in-house legal counsel to navigate complex deals. Their approach to determining **realtor fees New York** agents charge is based on this comprehensive, hands-on service. In contrast, you'll find flat-fee or discount models that may offer a la carte services. While tempting, a seller must question what is being sacrificed. For a high-value asset, like a Park Slope brownstone, the lack of a robust, international marketing campaign or expert staging consultation could leave significant money on the table, far outweighing the initial savings on commission.
Approaching negotiation with your potential listing agent requires finesse, not a sledgehammer. The most successful sellers in New York frame the conversation around a shared goal: maximizing the net proceeds. Instead of opening with an aggressive demand to lower their fee, consider proposing a performance-based incentive. You might suggest a tiered **listing agent commission** structure, where the agent earns a higher rate only if they achieve a sale price above a pre-agreed-upon benchmark. This aligns your interests perfectly. It signals that you value their expertise and are willing to reward exceptional results, a far more productive approach than simply asking "**how much do realtors charge new york**" and trying to grind them down. This collaborative tone ensures your agent is motivated and enthusiastic, not demoralized before the sign even goes in the yard.
Ultimately, the value of a real estate agent's service is measured by the final number on your closing statement. A top agent's commission is an investment, not just an expense. What does that investment buy you in New York's demanding market? It's the professional architectural photographer who knows how to capture the light in a West Village apartment. It's the drone footage soaring over a Westchester estate, the virtual staging that transforms an empty new development in Long Island City into a warm home, and the targeted social media campaigns reaching qualified buyers in specific financial districts around the world. The best agents, from Compass to local boutique firms, provide meticulous market analysis to justify their pricing strategy and possess the steely negotiation skills to defend it, ensuring the **realtor fees new york** sellers pay are returned through a higher, faster, and smoother sale.
Commission Negotiation Tips
Commission Negotiation Opener
Instead of asking an agent to simply cut their fee, frame the discussion around your net goal. Say, "My primary objective is to net at least [Your Target Net Proceeds] from this sale. I want to structure a commission that incentivizes you to help me exceed that goal. What are your thoughts on a performance bonus if you bring in a final price over [Target Price]?" This collaborative approach fosters a partnership and focuses on mutual success, which is more effective in New York's competitive agent landscape.
Post-Settlement Buyer Agent Tip
As a seller in post-settlement New York, you are no longer advertising buyer agent compensation on the MLS. To remain competitive, especially for properties where buyers may be less liquid, discuss offering a seller concession with your listing agent. This can be communicated during negotiations and written into the contract as a credit towards the buyer's closing costs. This strategy keeps your home attractive to the widest possible audience without directly paying the buyer's agent fee in the traditional sense.
Brokerage Value Assessment
To truly gauge the value behind a brokerage's fee, demand specifics. Request a side-by-side comparison of their marketing plan for your property versus a competitor's. Ask to see the list-price-to-sale-price ratio for their last ten comparable sales in your neighborhood. For a Manhattan co-op, inquire about their specific experience and success rate with the building's board. The answers will reveal whether their **new york real estate commission** is justified by a track record of superior results.
Discount Brokerage Reality
A discount or flat-fee brokerage might save you money on a standard, cookie-cutter home in a hot seller's market like certain suburbs of Albany or Syracuse, where demand outstrips supply. However, if you own a unique property—a historic home in Saratoga Springs, a loft with a complex layout, or a luxury property needing a global reach—the limited marketing and personalized service will likely cost you far more in a lower final sale price than you save on the reduced commission.
Staging as Commission Justification
When an agent proposes professional staging, ask them to prove the ROI to justify their commission. A top agent will provide a portfolio of their own listings, showing before-and-after photos and the corresponding sales data. They should be able to demonstrate how their investment in staging—whether physical staging for a Hamptons beach house or virtual staging for a vacant Brooklyn condo—directly resulted in fewer days on market and a higher closing price compared to unstaged neighborhood comparables.
Sell Your New York Home for Less
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More New York Resources
New York Real Estate Commission FAQ
What is the average real estate commission in New York?
The average total real estate commission in New York is 4.5-5.5% of the home's sale price. This is typically split between the listing agent (2.25-2.75%) and the buyer's agent (2.25-2.75%). On the median New York home price of $340,600, that's approximately $15,327–$18,733 in total commission fees.
Can you negotiate real estate commission in New York?
Yes, real estate commissions in New York are always negotiable — they are not set by law. Since the 2024 NAR settlement, commission transparency has increased significantly. You can negotiate lower rates with your agent, use a discount brokerage (like Redfin, Clever Real Estate, Houzeo, Prevu), or consider a flat-fee MLS service, which is readily available in your market.
How has the NAR settlement changed commissions in New York?
New York's high-value market amplifies the impact of commission changes; buyer rebates and fee transparency have increased significantly post-settlement. The key change is that sellers are no longer required to offer compensation to buyer's agents through the MLS. Buyers must now sign a written representation agreement with their agent before touring homes, which includes agreeing on the agent's compensation upfront.
What are the cheapest alternatives to full-commission agents in New York?
New York sellers can save on commission by: (1) using a flat-fee MLS service ($300-$500 to list on MLS), (2) working with a discount brokerage like Redfin, Clever Real Estate, Houzeo, Prevu, (3) negotiating a lower listing agent rate (especially on higher-priced homes), or (4) selling FSBO (For Sale By Owner) and only paying the buyer's agent commission. Virtual staging ($0.10/photo) can help FSBO and discount listings compete with full-service agents.
Who pays the buyer's agent commission in New York?
After the 2024 NAR settlement, the buyer's agent commission in New York is no longer automatically paid by the seller through MLS. Buyers can negotiate who pays: the buyer directly, the seller as part of the deal, or a split. In practice, many New York sellers still offer buyer agent compensation to attract more buyers, but the amount is now negotiable rather than preset.
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