Average Real Estate Commission in New York | Updated for 2023

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  Written by Lindsay Stefan

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  Edited by Kristy Snyder

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  Reviewed by Omar Harper

In this guide: Realtor fees in NY | How NY agents set rates | How to save on commission in NY | FAQ | Research methodology

The average total real estate commission in New York is 4.97%. This includes a 2.61% listing commission and a 2.36% buyer’s agent commission. In New York, sellers typically cover the real estate commission fees for both agents out of their sale proceeds at closing. 

On the average New York home price of $411,304, you’d pay $20,442 in real estate commission fees as a seller.

Realtor commission rates vary considerably by region, city, or even neighborhood. The agent and brokerage you choose, as well as the specifics of your sale — like your home’s value, location, and condition — are also factors.

This guide breaks down how much commission sellers can expect to pay in New York. We’ll also explain why NY commissions are what they are (and offer up some tips that could help you save). 

New York real estate commission: How much will you pay?

Here’s what you can expect to pay in realtor commission based on the average New York home price of $411,304.

	Average rate	Cost
Listing fee	2.61%	$10,735
Buyer’s agent commission	2.36%	$9,707
Total realtor fees	4.97%	$20,442

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How much is real estate commission in New York?

The average seller pays 4.97% in total realtor fees in New York, which is on the low side compared to the national average of 5.37%. This includes both the buyer’s agent and listing agent commission.

Realtor fees can also vary widely by city. While New York’s statewide average is low, New York City has a higher-than-average commission rate at 5.75%. Ask around to realtors in the area you want to sell to get a sense of what’s common. 

No matter the New York market you’re in, real estate commission isn’t stagnant — it can flex with market conditions. For example, average realtor fees in New York have decreased since 2021 from 5.10% to 4.97%. This is likely due to the hot pandemic-driven market, which made it easy and low-cost for realtors to sell homes.

“When the market was crazy, my job required less,” said broker Omar Harper of Harper & Associates in Beacon, New York. “I could list a property and just sit back.” 

In 2023, that craziness isn’t the reality anymore. New York housing market experts expect 16% fewer home sales in 2023 compared to 2022, meaning it’ll take more time and effort for realtors to break even. This could result in slightly higher commission rates.

On the other hand, as agents scramble to find more seller clients in a slow market, they might be more willing to negotiate lower commission fees.

How real New York agents and brokers set commission rates

The New York real estate agent we spoke to said his rates were somewhat flexible. Agents typically set commission rates based on what’s competitive in their area and what level of work a property will require to sell. 

For example, Harper — whose brokerage serves lower Dutchess County and the Hudson River Valley — said he typically charges 3-4% as a listing fee and 2–2.5% as a buyer’s agent commission. 

“I provide a menu of services sellers can choose from,” Harper said. “The more services they want, the higher the commission,” Harper said. 

The total realtor commission can be split among as many as four different parties: the listing agent, the buyer’s agent, and each of their brokers. So while it feels like a lot of money, everyone involved in the transaction gets a small slice of the earnings.

Another reason realtor fees are expensive is because agents have lots of overhead costs. In New York, these include:

• Taxes: Most real estate brokers and agents are considered self-employed and must pay taxes on their transaction earnings each year
• Association dues: $150–300
• Multiple Listing Service (MLS) fees: $45–200 monthly
• State license fees: $65–185 annually
• Administrative staff: Assistants can help with bookkeeping, scheduling, and other day-to-day operations
• Marketing costs: Professional photos, advertising, open houses, and staging

Finally, selling a house takes expertise and a lot of work. If it was easy, everyone would do it on their own.

How can I save on realtor fees in New York?

While it may take some outside-the-box thinking, there are a few ways you can save on realtor fees:

• Negotiate with a traditional real estate agent or broker
• Work with a discount real estate broker
• Sell without a realtor

Negotiate with a traditional realtor

“Commissions are on a case-by-case basis,” Harper said. “I’ll tailor the commission if it’s beneficial to the person. But it mainly depends on how much work I expect it to take to sell a particular house.”

For example, if you’re looking to sell your mega mansion along the Hudson in Westchester, your pool of eligible buyers is much smaller than average. This means more work and more expenses for your listing agent. Even though they’ll be making a strong commission, they may not be open to negotiating realtor fees.

But if you’ve got a (relatively) affordable condo in the heart of Brooklyn, the place just might sell itself. That means less risk for your real estate agent and potentially more wiggle room on commission.

Negotiating can be awkward and uncomfortable, if you’d rather avoid it, you can find an agent through Clever Real Estate. They’ve already pre-negotiated a 1.5% listing fee with experienced agents in New York, so you don’t have to. Find a New York agent for less.

Work with a discount real estate broker

Some brokerages offer discounted realtor fees up front. These companies can help you save money, but some come with risks or worse-than-average customer service. Do your research to understand what you’ll get for the discounted fee. See how we ranked discount real estate brokers in your area based on savings, customer reviews, and our experience mystery shopping with each company.

To save an average of $9,000 on your listing fee without sacrificing service, Clever Real Estate is your best option.

Sell without a realtor

The ultimate way to save on realtor fees is to sell without a realtor — though we don’t recommend this to most NY sellers.

You’ll avoid paying a listing commission, but you’ll have to do all of the work of a listing agent on your own. Plus, you’ll still want to pay a full buyer’s agent commission to incentivize other agents to show your home to their buyers.

Learn more about how to sell a house without a realtor in New York.

Other FAQs about New York real estate commissions

Research methodology

We regularly survey our pool of 14,000 partner agents nationwide on the commission rates they use for buying and selling. These data points are averages based on responses we’ve received from 18 agents across New York State. 

We also interviewed Omar Harper, a real estate agent based in Beacon, New York. 

Sources

• Zillow Home Value Data
• A Housing Market Hangover, The New York Times
• Tax Tips for Real Estate Agents and Brokers, Turbo Tax
• New York State, Department of State