Whether you’re entering the housing market to buy or sell, it’s essential to understand how real estate commissions work in New York. With changes introduced in 2024, real estate transactions now offer more transparency and communication regarding commission fees. These updates aim to give both buyers and sellers greater control over the costs involved.
This guide will walk you through the fundamental aspects of real estate commissions in New York and how they might affect your upcoming transaction, whether you’re new to the market or have prior experience.
Current state of the New York housing market
Before diving into the specifics of real estate commissions, it’s helpful to get a snapshot of the state of the New York housing market:
| Median Home Sale Price | $549,000 |
| Housing Supply | 48,576 (-2.2% YoY) |
| Homes Sold Above List Price | 46.7% (+0.5 pts YoY) |
Understanding real estate commissions in New York
What are real estate commissions?
Real estate commissions are fees paid to agents for facilitating the purchase or sale of a home. These fees are usually calculated as a percentage of the final sale price and are paid at the time of closing.
Who pays the commission?
Traditionally, the seller has covered both their agent’s commission and the buyer’s agent’s fee. However, starting on August 17, 2024, buyers must now sign an agreement specifying their agent’s commission before viewing properties.
Although buyers can still negotiate for the seller to cover these fees, the amount is now more flexible and open to negotiation throughout the offer process.
Average real estate commission rates in New York
In New York, commission rates can vary depending on the deal. Factors like the property’s location, market conditions, and the services provided by the agent play a role in determining the commission. Here’s a breakdown of typical commission costs in some of New York’s largest cities:
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| New York City | $820,000 | $12,300 | $24,600 | $41,000 |
| Buffalo | $195,000 | $2,925 | $5,850 | $9,750 |
| Yonkers | $545,000 | $8,175 | $16,350 | $27,250 |
At Redfin, we offer competitive listing fees for sellers starting at just 1%*. While buyer fees can vary by location, we work to keep our rates affordable and ensure your offer stands out in the market.
Can you negotiate real estate commissions in New York?
Yes, real estate commissions in New York are completely negotiable. Agents are often open to adjusting their rates based on the details of the transaction, the services they’re providing, and the appeal of the property.
When negotiating, consider factors like the agent’s local market expertise, their marketing strategies, and the condition of your home. If an agent is working as a dual agent (representing both buyer and seller), there may be more room to negotiate lower fees.
Tips for a successful negotiation
- Consult several agents: Speak with multiple agents to compare their services and commission rates.
- Offer incentives: You can include performance bonuses for agents based on how fast they sell your home or if they secure offers above the listing price.
- Use property appeal: Homes in desirable locations or with strong demand may give you more leverage to negotiate lower commission fees.
New York real estate commission FAQs
What are the changes to real estate commission? In 2024, two significant changes were introduced:
- Buyers are now required to sign a document outlining their agent’s fee before viewing homes.
- In many markets, buyer agent commissions are no longer visible in MLS listings.
Learn more about the real estate commission changes here.
How do the changes impact buyers in New York? Buyers must now agree to their agent’s commission in writing before beginning home tours. However, they can still negotiate with the seller to cover part or all of these fees during the offer process.
How do the changes impact sellers in New York? Sellers now need to determine, in consultation with their agent, how much they are willing to contribute toward the buyer’s agent’s fee. This contribution will be negotiated when offers are submitted.
How do you find a real estate agent in New York? Whether you’re buying or selling a property, Redfin agents are available to guide you through each step of the transaction and ensure you fully understand the process.
How can you avoid fees? Selling a home without an agent, commonly known as a For Sale By Owner (FSBO) sale, allows you to bypass agent commissions. However, you’ll be responsible for all aspects of the sale, from marketing the property to managing negotiations and paperwork.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.
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