How commission works | Commission calculator | Best ways to save | Methodology
📊 The data:
Our December 2023 survey of local agents found that the average real estate commission in New York is 5.39%, which is less than the national average of 5.49%. Calculate your estimated commission in New York.
The average total real estate agent commission rate in New York is 5.39% of the final sale price. Based on the latest median home sale price in New York ($627,944), that translates to a total cost of roughly $33,846.
Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In New York, the average listing agent fee is 3.00%, while the average buyer’s agent fee is 2.39%.
Real estate agent commissions make up a significant portion of the closing costs for New York home sellers. But you don't have to pay the full 5.39% to a traditional agent. If you're selling a home in New York, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 37% on realtor fees, or about $12,559 on average.
⚡ Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.
How real estate commission works in New York
| Average listing commission | 3.00% |
| Average buyer's agent commission | 2.39% |
| Total average commission | 5.39% |
There are usually two real estate agents involved in the real estate transactions of a home sale:
- The seller's agent (also called the listing agent), who represents the home seller
- The buyer's agent, who represents the person buying the home
Based on our research, the average real estate commission paid in New York for listing agents is 3.00% of the final home price and 2.39% for buyer's agents, for a total of 5.39%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for New York
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in New York. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
Looking to keep more money in your pocket from the sale? Clever can help by pairing you with a leading local listing agent who offers a competitive 1.5% commission rate. This strategy can significantly increase the amount of sale proceeds you retain.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Who pays realtor fees in New York?
When you decide to sell your home in New York, remember that the realtor commissions for both your listing agent and the buyer's agent come directly from the home's final sale price. You won't need to worry about paying these fees upfront as a seller.
Your listing agent earns their commission through services like conducting a thorough market analysis and managing the closing process efficiently. On the other side, the buyer's agent earns their commission by finding a qualified buyer who agrees to the purchase terms and successfully closes the deal.
As a seller, these commissions won't require any out-of-pocket expenses. Instead, the agents' fees are simply subtracted from the proceeds of the sale once everything is finalized.
Why do sellers pay the buyer's real estate agent commission?
Covering the buyer's agent commission can significantly enhance the appeal of your listing to prospective buyers. By taking on this fee, you make your home a more enticing option, as buyers won't need to worry about paying their agent's commission on top of the already hefty expenses of a down payment and closing costs —financial hurdles that many buyers find challenging.
Offer a competitive buyer's agent commission, and you'll find that real estate agents are more eager to bring your property to the attention of their clients. This strategy can lead to a higher likelihood of receiving multiple offers on your home. To stay competitive, experts suggest setting the buyer's agent commission within 0.5% of the local average, which currently stands at 2.39% in New York.
Will the NAR lawsuit change how real estate commission works?
On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023.
While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need.
The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.
» READ MORE:
How to save on realtor fees in New York
Commission rates are not set in stone. In fact, we found that while 3.00% is the average listing commission in New York, rates typically fall between 2.00% and 4.00%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 2.00%– 4.00% |
| Buyer's agent commission | 1.00%– 3.00% |
| Total commission range | 3.00%– 7.00% |
» LEARN: What's the commission on a $1 million home?
Can I negotiate realtor commission in New York?
Real estate commission is always negotiable. In New York, the 16 agents we surveyed said these were their most common reasons for agreeing to lower their commission.
| Would you lower your commission for…? | Agents who answered yes |
|---|---|
| Homeowners who also plan to buy with you | 63% |
| Homeowners with more than one property to sell | 56% |
| Homeowners who are repeat clients | 50% |
| Higher property values | 44% |
| Seller’s situation (e.g. divorce or death in the family) | 44% |
| High competition for clients | 38% |
| Homes expected to sell quickly | 19% |
| Periods of low housing inventory | 13% |
| High buyer demand in the area | 6% |
| Highly experienced home sellers | 6% |
| Houses in excellent condition | 6% |
Negotiating realtor fees in New York depends on two main factors: your situation and the housing market.
| Factor | You may have an easier time negotiating low rates if... |
|---|---|
| Your situation |
|
| The New York housing market |
|
Your situation will be unique, but the real estate dynamics in New York affect every seller in the region.
In a seller's market, where you hold more bargaining power, listing agents often find homes easier to sell and might be more open to cutting their commissions. Conversely, in a buyer's market, agents are less likely to budge on their fees.
Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.
To gauge the temperature of your local housing market, consider these key indicators:
- Inventory Months
- Sales Price to List Price Ratio
- Home Value Trends
Should the signs point to New York being a strong seller's market, you could have the upper hand to negotiate a reduced commission. On the flip side, if the market leans towards buyers, convincing an agent to lower their fee might be more challenging.
The current state of the New York real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 1.96 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 81.89% of their listing price | Buyer's market |
| Home values | Home values have risen 9.40% year over year | Seller's market |
» LEARN: See state-by-state average commission rates. How does your state compare?
Low commission real estate companies in New York
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: For those looking to sell their homes in New York, NY, and aiming to cut down on realtor fees without losing out on quality service, Clever stands out as a great option.
✅ Benefits and features: Clever secures you substantial savings with rates that are up to half off compared to traditional realtors. Its acclaimed matching service is also at your disposal for free, with no strings attached.
🏠 How it works: Clever pairs you with elite local real estate agents from well-known firms such as RE/MAX and Compass. You have the liberty to evaluate your choices to ensure an ideal match, all while enjoying a special listing fee of just 1.5% (on par with Redfin), irrespective of the agent you select.
Pros
- Partner with a conventional agent from a reputable brokerage (this is not a discount agent scenario)
- Agents offer their services at up to a 50% reduced rate via Clever
- Unmatched selection of agents — a wide array of top-tier New York City realtors at your fingertips
Cons
- No guarantee you’ll be able to work with a specific agent or brokerage you have in mind
- Additional services such as professional staging, aerial drone imagery, and 3D home tours might incur extra fees (agents will clarify the scope of services included in their listing pitch)
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Redfin presents a reasonably good deal for most property sellers in New York City, striking a balance between cost and service.
✅ Benefits and features: With Redfin, you stand to save a fair amount with their 1.5% listing fee. If you're both selling and buying within a year through Redfin, you could see even more savings with a reduced 0.5% listing fee. As a sizable and established entity, Redfin offers a broader selection of discount realtors compared to other local discount brokers.
🚩 Potential red flags: Redfin employs a tech-driven, team-based model for selling homes, which might not suit everyone's taste. The selling process is largely managed online, with a Lead Agent coordinating with a support team. Redfin also has a minimum $6,000 fee in New York. So if your home is below $400,000, you’ll pay slightly more than the advertised 1.5% rate.
Pros
- Noteworthy savings on listing fees
- Reputable brand with a reasonable choice of agents
- Tech-savvy methods could be attractive to certain sellers
Cons
- Minimum fee is higher compared to other options in New York City
- The high-volume, team-based service model may not appeal to all
- Fewer agent options than Clever
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: NestApple stands out for its enticingly low listing fee, starting at just 1%, which is particularly beneficial for sellers aiming to cut down on commission expenses.
✅ Benefits and features: The potential for considerable cost savings is a major draw with NestApple's 1% listing fee. For instance, selling a home at $400,000 could mean keeping an extra $8,000 in your pocket compared to the standard 3% fee.
🚩 Potential red flags: The advertised "as low as 1%" listing fee suggests that the actual rate might exceed 1% under certain conditions.
Pros
- Potential for substantial commission savings with the 1% fee
- Customer feedback is overwhelmingly positive
Cons
- The listing fee might surpass 1% for some properties
- A sparse portfolio of recent transactions in New York
» LEARN: How do discount real estate brokers offer lower fees?
Next steps
Thinking of selling your home but don't know where to start? Here are some next steps.
Start interviewing local agents
Set up some listing appointments, where an agent visits your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.
Here's why it's smart to sit down with a few agents before signing with one:
It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business, and will try to sell you on their service.
You can compare pricing and features: Shopping around helps you find the best fit for your specific needs – in terms of fees, experience, and services provided.
Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.
To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).
Clever has pre-negotiated low commission rates of only 1.5%, with New York's top agents. Contact Clever today to find out how much you can save on commission!
Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).
You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.
Ready to learn more? Click below to take our simple quiz and see your agent matches!
Methodology
We gathered our commission rate data from a survey of 630 of our partner agents. The survey asked about standard local rates for both listing and buying agents. We also asked agents about when and why they're willing to negotiate real estate commissions.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of January 2024
- Sale-to-list ratios: Based on Zillow data as of January 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of February 2024
