Average Real Estate Commission in New York

By 

Bailey Peterson

Updated 

February 11th, 2021

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How commission works | Getting low rates | Low commission companies | Methodology

📊 The data: We polled local agents and found that the average real estate commission in New York is 5.29%, which is less than the national average of 5.45%.

For a house sold for $346,328, this rate translates to $18,321 in real estate agent commission costs.

Realtor commission is usually the largest cost that home sellers face, but the upside is that it also represents the biggest potential for savings.

» MORE: Learn how Clever can help you save on commission.

Below, we cover everything you need to know commission costs in New York and also give you tips for getting low rates.

How real estate agent commission works in New York

There are two real estate agents involved in a typical home sale:

  • The seller's agent (also called the listing agent), representing the home seller
  • The buyer's agent, who represents the person buying the home

The seller's and buyer's agent get paid a percentage of the home's final price when the sale is finalized. This payment is called real estate agent commission, and is baked into the sale price of a home and split between the two agents.

» LEARN: More about how real estate commissions work.

Based on our research, the average commission split in New York has 54.93% of the commission going to the listing agent and 45.07% going to the buyer's agent.

Who pays for real estate commissions?

Home sellers are responsible for paying the real estate commission of both the agent representing them, as well as the agent representing whoever buys their home.

However, since the realtor commission is baked into the sales price you could say that the home buyer is paying — at least in-part — through a higher sales price.

» MORE: Who pays realtor commission.

How to save on real estate commission in New York

💰Best ways to save

While there are a number of options for home sellers looking to save on commission, good options for most home sellers include:
  • Negotiating rates with a traditional realtor
  • Working with a low commission real estate company

» MORE: Options for saving on realtor commission

Houses in New York are selling quickly, with an average listing time of just six weeks.

Sellers can be confident of a quick sale with favorable conditions like this, so now might be a good time to negotiate a lower commission with your real estate agent.

Agents are more likely to be flexible on their commission in a seller’s market like New York because closing a deal will require less effort than it might in a slower-moving market.

Below we cover how you can negotiate lower rates, and list some of our recommendations of low commission real estate companies that you should consider.

With Clever you can save on commission without negotiating… AND work with top agents!

Clever has pre-negotiated low commission rates, with top local agents across the country.

The result is that you can save thousands of dollars when you sell your home, without having to haggle over commission rates!

With a Clever agent, you get full service and only pay a listing commission of $3,000 or 1%.

Tips for negotiating realtor commission in New York

Successfully negotiating commission rates depends mainly on two factors: your situation and the housing market.

Factor
You may have an easier time negotiating low rates if...
Your situation
  • You're selling a high-value home
  • You have a personal relationship with a realtor
  • You can offer a realtor repeat business
The New York housing market
  • Homes are selling quickly
  • There are relatively few homes listed for sale
  • Home values are rising

» LEARN: How you can negotiate lower commission rates.

While the personal factors that affect your ability to negotiate commission rates are unique to you, the local real estate market conditions will affect all home sellers in New York.

In a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more inclined to offer lower commission rates. The opposite is true in a buyer's market.

📖Definitions

Months of inventory, is measured by dividing the homes listed for sale in the most recent month by the number of homes actually sold in that month. It is a key indicator of how much supply and demand there is for houses in a market.

Sale-to-list is calculated by dividing the median sale price by the median listing price in a given area. If homes in your area are generally selling for more than their listing price, that is a good indication that you are in a seller's market.

Home values rising in your area indicate that demand is growing. Whereas if this figure is falling, then it's more likely that homes in your area are becoming less desirable.

To judge the current state of the real estate market, you can look at three factors: months of inventory, sale to list price, and home value trends. Below, we've included a current breakdown of these factors in New York.

Stats and facts: The current state of the New York real estate market

Factor
Trends
Indication
Months of inventory
There's 1.5 months of housing inventory on the market
Seller's market
Sale-to-list price
Homes are selling for 99.60% of their listing price
Seller's market
Home value
Home values have risen/fallen 4.05% year over year
Seller's market

Low commission real estate companies in New York

Home sellers looking to save money when selling their home should consider a low commission real estate company. To help you out, Clever has picked some of the top discount and flat-fee MLS services across the state:

Discount real estate brokers in New York

Discount real estate brokers are companies that will list your home for a reduced commission percentage or flat rate. The catch is that the service might not be on-par with what you'd get from a top local agent.

Listing Fee

1% (minimum $3,000)

Clever Cash Back

0.5% on homes over $150,000

Avg. Customer Rating

4.8/5 (386 reviews)

Description
Locations
Pros & Cons
Reviews
  • Clever Real Estate is a nationwide, online concierge and agent matching service for sellers and buyers — learn more
  • Buyers and sellers are matched with multiple highly rated agents from major brands, such as Keller Williams, Century 21, Compass, RE/MAX, and more
  • Sellers choose a full-service agent and pay a flat, $3,000 fee — or just 1% for homes more than $350,000
  • Buyers may be eligible for 0.5% back after closing (in qualifying locations)

Clever has pre-negotiated lower commission rates with top agents in all 50 states, D.C., and Puerto Rico

Pros
  • Listing fee of $3,000 (or 1% on homes >$350K) for a full-service agent
  • Sellers only pay once their home is sold
  • Partner Agents are top, local realtors with at least 5 years experience
  • Agent matches are customized and based on your specific situation
  • Eligible buyers receive 0.5% in Clever Cash Back
Cons
  • Sellers may not be matched with an agent from their preferred brokerage
  • While homes are listed on the MLS, there's no independent Clever listing site.







As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.

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Prevu Real Estate

Prevu Real Estate

Listing Fee

1.5%

Buyer Rebate

Up to 2%

Avg. Customer Rating

4.9/5 (53 reviews)

Description
Locations
Pros & Cons
Reviews
  • Prevu is a real estate broker offering commission savings in New York City, Philadelphia, and Fairfield County, CT
  • If you're selling, get full service for a reduced 1.5% listing fee, vs the 2.5-3% rate typically charged by traditional, full-service agents
  • Expect to pay a buyer's agent commission as well — rates vary, but 2.5-3% is typical nationwide
  • Prevu agents don't work on commission, they're salaried. This has some implications buyers and sellers should be aware of
  • Qualifying buyers can get a commission rebate of up to 2% back at closing

New York

BronxManhattanStaten Island
BrooklynQueens


Connecticut

Fairfield County


Pennsylvania

Philadelphia
Pros
  • Sellers get full service for reduced 1.5% listing fee
  • Buyers can get up to a 2% commission rebate, which is substantial
  • 3D Virtual Tours included as a built-in service
Cons
  • Some companies offer comparable services for a lower listing fee
  • Limited availability/market coverage

As of May 20, 2020, Prevu's average customer rating is 4.9/5 based on 53 reviews across Google and Yelp. See the breakdown below.

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REX Real Estate

REX Real Estate

Listing Fee

2% ($9,000 min.)

Buyer Rebate

Up to 1-1.5%

Avg. Customer Rating

4.6/5 (536 reviews)

Description
Locations
Pros & Cons
Reviews
  • Sellers get full service (minus MLS access) for a 2% listing fee — $9,000 minimum fee for homes below $450,000
  • REX does not post listings on the MLS. Instead, it uses digital advertising to target unrepresented buyers and help you avoid paying a buyer’s agent commission (typically 2-3%)
  • This may significantly reduce your pool of prospective buyers (roughly 87% of buyers work with agents), making it harder to attract offers
  • Represented buyers must cover their agent's fee themselves, which could hinder their ability or desire to purchase your home
  • If you buy a non-REX home with a REX agent, you may qualify for a 1-1.5% commission rebate. If you buy a REX-listed home, you are not eligible for a rebate
Arizona
California
Colorado
New Jersey
New York
Florida
North Carolina
Georgia
Pennsylvania
Oregon
Illinois
Texas
Maryland
Vermont
Massachusetts
Virginia
Nevada
Washington, D.C.
Pros
  • Save up to 1% on listing fees
  • Potential to avoid buyer’s agent commission (2-3%)
  • Get full service (minus MLS access) and concierge support



Cons
  • $9,000 minimum may result in listings fees higher than advertised 2%
  • Not listing on the MLS significantly reduces your home's visibility
  • Not offering a buyer's agent commission puts you at a competitive disadvantage

As of May 20, 2020, REX Real Estate’s average customer rating is 4.6/5 based on 536 reviews across Zillow, Facebook, and Google. See the breakdown below.

>> VIEW REX’s Better Business Bureau profile here.


*These reviews are for REX's main California office. Reviews may vary by location. We recommend conducting your own research for customer reviews specific to your area.

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» MORE: About discount real estate brokers.

Flat-fee MLS listing services New York

Flat-fee MLS listing services offer to post your home on your local MLS for a low rate often around $100-300. The trade-off is that you'll have to handle almost the entire home-selling process yourself. If you're a real estate novice, this might not be a good option for you.

Flat Fee Realty

Flat Fee Realty

Price Range

$199

Number of Photos

Listing Term

6 months

Description
Pricing
Pros & Cons
Reviews
  • Flat Fee Realty is a nationwide flat-fee MLS referral service, licensed in Connecticut, that connects you with New York brokers and agents who will list your home on the MLS for a pre-negotiated rate
  • You set buyer’s agent commission
  • MLS photo upgrade available for $50
  • State disclosures and forms available
  • Unlimited listing changes
  • Buyer leads forwarded to you
  • Refund available within 30 days of purchase

$199 - MLS Listing package

  • 6-month listing on MLS
  • Syndicated to Realtor.com, Zillow, Trulia, and more
  • 6 Photos
  • Free state disclosures
  • Unlimited listing changes
  • No cancellation fee
  • Buyer leads forwarded to you


MLS photo upgrade available for $50

Pros

  • Unlimited listing changes
  • No cancellation fee
  • Free state disclosures
  • Buyer leads forwarded to you
  • Refund available within 30 days of purchase

Cons

  • No built-in home valuation or market analysis
  • Limited coverage in rural areas

As of August 11, 2020, no third-party reviews exist for Flat Fee Realty. We will update when this information becomes available.

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Hauseit

Hauseit

Price Range

$379-1,499

Number of Photos

Unlimited

Listing Term

6 months

Description
Pricing
Pros & Cons
Reviews
  • Hauseit is a New York-based flat-fee MLS referral service that connects you with local, traditional brokers and agents who will list your home on the MLS for a pre-negotiated rate
  • Services New York City, Hudson Valley, and Long Island
  • Free listing changes
  • Buyer and agent inquiries go through the partner broker’s office and then are passed to you — this keeps buyers from learning you’re saving on commission
  • Set your own buyer’s agent commission (Hauseit recommends 2.5-3%)
  • Pay no commission if you find an unrepresented buyer
  • Offers a variety of additional, a-la-carte options including broker consultations, professional photography, virtual staging, custom floor plans, open house assistance, appraisal services, and real estate attorney referrals
$379 - Agent Assisted FSBO
  • 6-month listing on MLS
  • Notable syndications - Syndicated to Realtor.com, The New York Times, Zillow, Trulia, and more
  • Max number of photos allowed by MLS
$499 - Agent Assisted FSBO+Pro Photos
  • Same as basic package, plus:
  • Min. of 7 professional, digitally edited photos




$599 - Agent Assisted FSBO+Pro Photos+Floor Plan
  • Same as Agent Assisted FSBO+Pro Photos package, plus:
  • Custom floor plan
$1,499 - Pro Package
  • Same as Agent Assisted FSBO+Pro Photos+Floor Plan package, plus:
  • 3, 1-hour broker consultations to get advice on negotiating, buyer screening, offer analysis, buyer’s agent and lead outreach, staging, pricing, open houses, and other general questions

A-la-carte services include: broker consultations, professional photography, virtual staging, custom floor plans, open house assistance, appraisal services, and real estate attorney referrals


Hauseit also offers a 1% full-service package. Check website for details.

Pros

  • Free listing changes
  • Buyer leads go through the listing broker’s main office (the buyer doesn’t know you’re saving on commission, which could lead to lower offers)
  • Pay no commission if you find an unrepresented buyer

Cons

  • No built-in home valuation or pricing assistance

As of August 1, 2020, Hauseit has an average rating of 4.9/5 based on 174 reviews across Google and Trustpilot.

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» MORE: About flat-fee MLS services.

Methodology

Data on commission rates is based on a survey of 554 of our partner agents, in which we asked them to indicate the typical rates for both buyer's and seller's agents in their area.

Additionally, we utilized the following data from Zillow and Realtor.com:

  • Home values, list prices, and sale prices: Based on Zillow data as of September, 2020
  • Sale prices and sale-to-list ratios: Based on Redfin data as of September, 2020 (unless specified otherwise)
  • Months of inventory: Based on Realtor.com data as of September, 2020

Additional resources for New York home sellers

Average real estate commission rates in New York cities

New York City