Realtor fees in New York typically range from 5% to 6% of the sale price, though the statewide average has compressed to roughly 4.62% to 5.69% in 2026 depending on the region and market conditions. Fees are fully negotiable by law, and several alternatives now let sellers pay far less or nothing in traditional commission.
On a $650,000 home (close to the 2026 New York statewide median), a 5.5% commission equals $35,750 taken off the top at closing. That figure varies by region: Manhattan sellers often see commission compressed to 5% to 6% on complex co-op deals, Brooklyn typically runs 3% to 4%, while upstate markets like Buffalo, Syracuse, or Albany tend to see the full 5% to 6% range. Long Island falls in between, with most transactions settling at 5% to 5.5%.
This guide covers how commission is calculated and split, what New York sellers actually receive for the fee, how the August 2024 NAR settlement changed the rules, and how to negotiate or eliminate commission costs in 2026.
How Real Estate Commission Works in New York
A real estate commission is the fee paid to licensed agents for facilitating a home sale. It is calculated as a percentage of the final sale price, agreed upon before the property is listed, and deducted from the seller’s proceeds at closing. The seller pays nothing upfront.
The total commission is typically split between two agents: the listing agent (representing the seller) and the buyer’s agent (representing the buyer). Each agent then shares their cut with their brokerage. A 5.5% total commission on a $500,000 sale produces $27,500 in total fees, roughly $13,750 to each side before brokerage splits.
For a full breakdown of selling costs beyond commission, see the guide to New York seller closing costs.
Who pays real estate commission in New York?
In most New York transactions, the seller pays the full commission. It is deducted from sale proceeds at closing, so the seller never writes a separate check. The title company or attorney handles the disbursement.
Buyers are not entirely unaffected. Commission is typically factored into the listing price, meaning buyers often contribute indirectly through the price they pay. This is changing as a result of the 2024 NAR settlement, which took effect in August 2024. Buyers in New York must now sign a written compensation agreement with their agent before touring homes. That means buyer-agent fees must be disclosed and agreed to in writing upfront, rather than assumed to be covered by the seller.
For a closer look at closing costs in New York beyond agent fees, that guide covers transfer taxes, title fees, and attorney costs. For seller obligations beyond commission, the guide to taxes on selling a house in New York covers transfer taxes and other closing line items.
Average Realtor Fees in New York in 2026
Real estate commission rates in New York are not uniform. They vary by market, property price, and negotiation. The tables below show typical ranges by region and what those rates mean in actual dollars.
New York commission rates by region (2026)
| Region | Typical total commission | Notes |
|---|---|---|
| Manhattan | 5.0% to 6.0% | Co-op complexity and premium marketing support higher rates |
| Brooklyn | 3.0% to 4.0% | More competitive, tech-savvy market; rates compressed |
| Long Island | 5.0% to 5.5% | Competitive market; some room to negotiate |
| Westchester County | 5.0% to 5.5% | Strong demand; agents may hold closer to 5.5% |
| Upstate (Buffalo, Syracuse, Albany, Rochester) | 5.0% to 6.0% | Lower median prices; full rates more common |
| Hudson Valley / Capital Region | 5.0% to 5.5% | Growing market; rates similar to Long Island |
Regional ranges are estimates based on typical market practice in 2026. Verify rates with local agents before signing any listing agreement.
Dollar cost of commission at common New York sale prices
| Sale price | 5.0% commission | 5.5% commission | 6.0% commission |
|---|---|---|---|
| $300,000 | $15,000 | $16,500 | $18,000 |
| $500,000 | $25,000 | $27,500 | $30,000 |
| $650,000 | $32,500 | $35,750 | $39,000 |
| $900,000 | $45,000 | $49,500 | $54,000 |
| $1,500,000 | $75,000 | $82,500 | $90,000 |
Based on standard commission rate tiers. Verify current rates before transacting.
To calculate your specific net proceeds after commission and other selling costs, the seller net proceeds calculator in New York walks through the full numbers.
What Do New York Sellers Get for the Commission?
Listing agent services (seller’s side)
A listing agent earns their share of commission by managing the seller’s side of the transaction from pricing through closing. Core services typically include:
- Comparative market analysis (CMA): determining the right list price based on recent comparable sales in the local New York market
- Professional marketing: photography, MLS listing, and syndication to Zillow, Realtor.com, and other platforms
- Showings and open houses: coordinating access and presenting the property to buyers
- Offer negotiation: advising on price, contingencies, and terms
- Transaction management: coordinating with attorneys, inspectors, appraisers, and the title company through closing
In New York, sellers are required by law to complete a Property Condition Disclosure Statement or pay a $500 credit to the buyer in lieu of disclosure on certain residential properties. A listing agent typically helps manage this requirement.
Buyer’s agent services
A buyer’s agent helps clients identify properties, assess value, negotiate terms, and navigate New York’s attorney-driven closing process. Their services include:
- Property search and filtering based on buyer criteria and budget
- Scheduling and attending showings
- Analyzing comparable sales to evaluate offer price
- Drafting and submitting offers
- Coordinating inspections, appraisals, and attorney review through closing
In New York, real estate attorneys handle contract preparation and closing. Buyer’s agents work alongside legal counsel rather than replacing it.
Is the commission worth it in 2026?
For sellers in competitive New York markets with well-priced, move-in-ready homes, a skilled listing agent can accelerate the sale and improve net proceeds through stronger negotiation. For sellers with distressed properties, tight timelines, or homes in slower markets, the commission cost may outweigh the benefit, particularly when cash buyer and iBuyer alternatives are available.
Despite expectations that the August 2024 NAR settlement would compress rates, a February 2026 survey of 533 agents found average total commission at 5.70%, a five-year high, suggesting sellers still need to negotiate actively rather than assume rates have fallen.
The value depends on your specific situation. The next two sections cover how to evaluate whether a rate is fair and how to push back.
Are Real Estate Fees Negotiable in New York?
Yes, real estate fees in New York are fully negotiable. No state law sets a minimum or standard commission rate, and the 2024 NAR settlement reinforced that agents and sellers must agree on compensation in writing before any listing agreement is signed.
Sellers are most likely to negotiate successfully when:
- The home is high-value. Agents on a $1.5M sale earn more in absolute dollars at 4.5% than on a $400,000 sale at 6%, so there is more room to negotiate the percentage down on larger transactions.
- The market is competitive. In a seller’s market, homes sell faster with less agent effort, which can justify a lower rate.
- The seller is listing multiple properties. Investors or developers with several units often negotiate package rates.
- The home is market-ready. A reduced agent workload supports a lower fee conversation.
A useful starting point is to interview at least three agents, ask each for their proposed commission in writing, and use competing proposals as leverage. The guide on negotiating realtor fees covers specific scripts and tactics.
One important caution: a lower listing commission does not automatically mean a lower buyer’s agent commission. Under post-NAR settlement rules in effect since August 2024, buyer compensation is negotiated separately. Offering a below-market buyer’s agent fee can reduce buyer interest, since agents may prioritize showing homes with more competitive offers. This trade-off is worth discussing explicitly with any agent you hire.
What the 2024 NAR Settlement Means for New York Sellers
The August 2024 National Association of Realtors (NAR) settlement introduced two structural changes that directly affect how New York sellers handle commission:
- MLS platforms can no longer display offers of buyer-agent compensation. Sellers are not prohibited from offering to cover the buyer’s agent, but that offer cannot be advertised on the MLS. Any agreement to cover buyer-agent fees must be handled through separate negotiation.
- Buyers must sign a written buyer-broker agreement before touring homes. This agreement specifies how the buyer’s agent will be compensated. If the seller does not agree to cover this fee, the buyer pays it directly. For a full explanation of what these agreements require, see What Is a Buyer Broker Agreement?
For New York sellers, the practical effect in 2026 is increased complexity at the offer stage. Buyers may ask sellers to contribute to buyer-agent fees as part of a purchase offer. This has become a common workaround since the MLS restriction took effect. Sellers should expect this as a negotiated line item in offers and should consult their listing agent or real estate attorney before agreeing.
The settlement does not cap or regulate commission rates. It addresses disclosure and payment structure, not the amounts themselves.
How to Reduce Realtor Fees in New York
Sellers have several practical options to lower or eliminate traditional commission costs in 2026:
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Negotiate the listing commission directly. Most listing agents will discuss their rate, especially on higher-priced properties or in competitive markets. Start by asking for a tiered structure. For example, 4.5% if the home sells within 30 days, 5% if it takes longer.
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Use a discount brokerage. Several brokerages in New York offer listing services for a flat fee or reduced commission, typically 1% to 2% on the listing side. The trade-off is often reduced marketing support or fewer included services.
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Sell by owner (FSBO). Selling without a listing agent eliminates the listing-side commission. In New York, this still requires a licensed real estate attorney to handle contracts and closing. The guide to selling without a Realtor in New York covers the full process and legal requirements.
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Sell directly to a cash buyer or iBuyer. These options involve no traditional listing commission. See the next section for how this works and what to expect.
Each strategy involves trade-offs between cost savings, effort, and sale outcome. The right choice depends on your timeline, property condition, and risk tolerance.
Cash Home Buyers and iBuyers: A Commission-Free Alternative
Selling directly to a cash buyer or iBuyer skips the traditional listing process entirely, and with it, the standard real estate commission. Instead of paying a 5% to 6% agent fee, sellers typically pay a service fee that varies by company and property.
| Factor | Traditional agent sale | Cash buyer / iBuyer sale |
|---|---|---|
| Commission | 5% to 6% of sale price | None (service fee instead, typically 3% to 8%) |
| Timeline | 60 to 90 days average in New York | 7 to 30 days in many cases |
| Showings | Multiple, coordinated | None or minimal |
| Repairs required | Often expected by financed buyers | Typically none |
| Offer certainty | Contingent on financing and inspection | Cash, fewer contingencies |
| Final price | Closer to full market value | Typically below market, reflecting speed and convenience |
Based on typical market practice in 2026. Service fees vary by company. Verify terms before accepting any offer.
For New York sellers who need to close quickly due to relocation, inherited property, financial pressure, or a property that needs significant work, the reduced offer price may be offset by the saved commission and avoided carrying costs.
iBuyer.com connects sellers with multiple vetted cash buyers competing for the same property, so sellers receive more than one offer and can compare before committing. For options in the New York market, the guide to cash home buyers in New York covers which companies operate in the state and what to expect from each.
Pros and Cons of Using a Traditional Realtor in New York
Advantages of using a listing agent
- Market expertise: experienced listing agents know local pricing, buyer behavior, and negotiation tactics specific to New York’s varied markets
- MLS exposure: listing on the MLS maximizes buyer reach and competitive offer potential
- Transaction management: agents coordinate with attorneys, inspectors, and lenders, reducing the administrative burden on sellers
- Stronger final price in some markets: a well-executed listing strategy can produce offers above asking in competitive New York markets
Disadvantages of using a listing agent
- High cost: 5% to 6% on a $700,000 home equals $35,000 to $42,000 in fees
- Timeline uncertainty: even well-priced homes in New York can take 60 to 90 days to close after contract
- Buyer financing risk: most listed sales involve financed buyers, whose deals can fall through due to appraisal gaps or loan denial
- Preparation costs: agents may recommend staging, repairs, or updates that add upfront expense
Should You Skip the Commission Entirely?
If your priority is keeping more of your proceeds rather than achieving the highest possible list price, skipping the traditional commission structure is worth evaluating seriously. On a $650,000 New York home, a 5.5% commission costs $35,750. A cash buyer offering 3% to 5% below market on that same home would cost you $19,500 to $32,500 in the price gap, with no commission on top.
The math does not always favor the listed sale, especially when you factor in carrying costs (typically $2,000 to $4,000 per month in mortgage, taxes, and insurance during a 60 to 90 day marketing period), any repairs or staging expenses, and the risk of a buyer’s financing falling through. For many New York sellers, comparing a cash offer directly against the projected net from a listed sale is the clearest way to make this decision.
For a complete view of all selling costs, the cost of selling a house in New York guide covers transfer taxes, attorney fees, title costs, and more alongside commission. For additional context, the selling a house in New York guide walks through the full transaction timeline.
If you want to see what you would net without paying a traditional commission, iBuyer.com lets you request competing cash offers from multiple vetted buyers for your New York home. There are no agent fees, no required repairs, and no obligation to accept any offer. Sellers compare offers side by side and close in as little as 7 to 30 days.
Frequently Asked Questions
Realtor fees in New York typically run 5% to 6% of the sale price in 2026, though the statewide average has compressed to roughly 4.62% based on survey data. In Manhattan, total commission often reaches 5% to 6% due to co-op complexity, while Brooklyn typically runs 3% to 4%. On a $650,000 home, a 5.5% commission equals $35,750.
Yes, real estate fees in New York are fully negotiable by law. No statute sets a standard or minimum rate. Sellers on higher-priced homes, in competitive markets, or with market-ready properties are best positioned to negotiate a reduced rate. The 2024 NAR settlement reinforced that all commission agreements must be in writing before a listing is signed.
In most New York home sales, the seller pays the full commission, which is deducted from proceeds at closing. Since the August 2024 NAR settlement, buyer-agent compensation is negotiated separately and may be covered by the buyer, the seller, or split, depending on what is agreed in the purchase offer.
The settlement, which took effect in August 2024, removed buyer-agent commission offers from MLS listings and required buyers to sign written compensation agreements before touring homes. For New York sellers in 2026, buyer-agent fees are now a separately negotiated item and may appear as a line in the purchase offer rather than being assumed as part of the listing commission.
Buyers do not pay commission directly in most New York transactions, but this is changing. Under post-NAR settlement rules in effect in 2026, buyers must agree in writing to their agent’s compensation before touring homes. Whether the seller or buyer ultimately covers this fee is now a matter of negotiation at the offer stage.
New York sellers can reduce fees by negotiating the listing commission directly (especially on higher-priced homes), using a discount brokerage for a flat fee or 1% to 2% listing rate, selling FSBO, or selling directly to a cash buyer or iBuyer. Each option involves trade-offs between cost savings and the level of support and final sale price.
In a typical New York transaction, the total commission is split roughly equally between the listing agent and the buyer’s agent, each receiving about half before sharing with their brokerage. On a $500,000 sale with a 5.5% commission, that means approximately $13,750 to each side before brokerage splits. The exact split is negotiable.
iBuyers do not charge a traditional real estate commission. Instead, they apply a service fee, typically ranging from 3% to 8% depending on the company and property. Sellers also typically receive an offer below full market value, reflecting the speed and certainty the transaction provides.
Selling to a cash buyer is a strong option for New York sellers who need to close quickly, want to avoid showings and repairs, or own a property that would complicate a financed sale. The trade-off is an offer typically below full market value. For sellers who prioritize speed and certainty over maximum price, cash buyers can produce a better net outcome when commission costs and carrying time are factored in.
NYC realtor fees differ significantly by borough: Manhattan typically runs 5% to 6% due to co-op complexity, while Brooklyn runs 3% to 4% in a more competitive market. Upstate markets like Buffalo, Syracuse, and Rochester tend to see the full 5% to 6% range. Long Island and Westchester generally fall in the 5% to 5.5% range.
Yes, a seller in New York can choose to offer compensation to the buyer’s agent as part of a negotiated deal. Since August 2024, this offer can no longer be advertised on the MLS, but it can be included in the purchase offer or negotiated directly. Many sellers continue to offer buyer-agent compensation as a strategy to attract more buyers and competitive offers.
There is no legally set minimum commission in New York. In practice, most agents working a full-service listing will not go below 1% to 1.5% on the listing side, even on high-value properties. Discount brokerages may offer flat-fee or 1% listing packages, but these typically include fewer services than a full-commission arrangement.
The NYC FARE Act does not affect home sales or sales commissions. It applies only to rentals. Effective June 11, 2025, the FARE Act prohibits landlord-hired brokers from charging broker fees to tenants in New York City. Tenants only owe a broker fee when they hire a broker themselves. Violations can be reported through NYC311. Seller commission rates remain fully negotiable under separate rules.
Reilly Dzurick is a licensed real estate agent with over six years of experience and a member of the iBuyer.com Market Insights Team, covering national trends in home selling and the evolving iBuyer landscape. Her firsthand experience working with buyers and sellers gives her a practical perspective on how these platforms impact real homeowners. She holds a degree in Public Relations, Advertising, and Applied Communication.
