Your real estate agent does a lot of work to earn their commission. If you’re a seller, they prepare a comparative market analysis to help you pick the best price, measure and photograph rooms, write up your listing, schedule showings, and more. An agent doesn’t get paid until after the sale has been completed. Their commission represents their entire paycheck for all that work.
What are Average Real Estate Commissions?
Nationwide, the average real estate commission is 6%. It’s split between the buyer’s agent and the seller’s agent, so your agent only receives 3%. The entire commission, however, is typically paid by the seller.
Because this 6% is an average, there are parts of the country where home sellers pay more or less in commission. In Syracuse, you could pay as little as 4.50% to 4.99%.
What are Average Real Estate Commissions In New York?
The typical range of real estate commissions in New York goes as low as 4.5% and as high as 6%. Within New York City they rarely dip below 6% as most of the major brokerages will not allow their agents to sign contracts for less than this percent.
When asking your realtor about typical commissions they may not give you a straight answer, but this isn’t to be deceptive. There are prohibitions against price fixing and price collusion which could get them in hot water so they must be careful when discussing a commission.
When you sign an exclusive right to sell agreement with a New York agent they will receive their commission if the home is sold at any point during the contract. This is true even if you wind up making the sale to your yoga partner.
Who gets all the Money?
A typical home in New York City has a median value of $677,000. A 6% commission would be $40,620. The buyer’s agent gets half, or $20,310, and then the seller’s agent gets the other half.
However, your agent doesn’t get to keep this entire portion. Unless they have a broker’s license and can operate as a broker they must split some of their commission with their brokerage. Newer agents might have to give them 60% of their commission, whereas more experienced agents can negotiate to keep more. They could only make $8,124 for months of work.
Can I save Money on Commissions?
Real estate commissions are always negotiable, and while there are averages and industry standards, there are no rules and regulations governing them. If you want to save money on commission, use a low-commission Clever Partner Agent.
Discount agents or flat-fee agents charge less for their services. A flat-fee agent charges you a fee to list your home on the MLS. And that’s all they do, they provide no marketing services, they don’t show your house, and they don’t help with the closing paperwork.
Discount agents charge less but offer reduced service, unless you are hiring an agent through the Clever Partner Network. Most discount agents agree to work for less commission because getting referrals through a network saves them time and marketing fees finding customers. But Partner Agents offer full-service and give you everything that you would receive from a traditional agent.
If you’re ready to sell your New York house but don’t want to pay 6% in commission, reach out to Clever today. One of our representatives can put you in touch with an experienced, local agent to help you sell your New York house for top dollar.