Realtor Fees And Real Estate Commissions in New York

Traditionally, selling your home involved paying the commission of both your own real estate agent as well as the buyer’s agent, which could run as high as 6 percent of the home’s sale price.

As a result, New York sellers faced a steep commission bill when it came time to close on a deal, given the state’s high housing prices. For example, Redfin data shows that the median sale price for a home in the Empire State was $576,400 in February 2025 — a full 6 percent commission on a sale of that price amounts to more than $34,000.

However, that standard changed in 2024 after a federal lawsuit, and now, buyers and sellers may each be required to pay their own agents directly. While this might cost homebuyers more, sellers may now be able to retain a greater share of their proceeds. Let’s look more closely at Realtor fees in New York state and what parties on both sides of a real estate deal can expect to pay.

How much are real estate commissions in New York?

The combined cost of commissions for a real estate transaction in New York is 5.36 percent, according to the most recent data from Clever Real Estate. To see what that really means for your bottom line, let’s apply it to a median-priced $576,400 home in the state: 5.36 percent on that selling price would be a total commission of $30,895.

But that’s the cost for both agent’s commissions combined. If you’re just paying just your own agent, the cost would be far less. Per Clever, listing agents in New York (who represent the seller) earn an average of 2.72 percent, while buyer’s agents earn about 2.64 percent. On a median-priced home, that comes to $15,678 and $15,217, respectively.

Another important factor to consider is that home prices vary a great deal throughout New York, especially when comparing New York City to the rest of the state. Here’s what the cost of commissions might amount to in a few very different locations, assuming the commission percentages above.

SOURCES: Clever, Redfin

What’s included in a real estate agent’s commission?

Real estate agents provide a range of services to both buyers and sellers, up to and including guiding their clients through the closing process.

If you’re selling your home, your agent helps with developing a competitive list price based on local real estate market dynamics and research into the selling prices of comparable homes. An agent will also professionally market your home, host open houses, field offers and negotiate the best possible deal on your behalf.

If you’re buying a home in New York, a local agent will find listings that align with your location, budget and lifestyle needs, and arrange for you to see them. Your agent can also offer advice regarding how much to bid when you’re ready to make an offer and help negotiate a deal with sellers. In addition, they will help make sure all your paperwork is in order for the closing (there’s a lot!).

Who pays agent commissions in New York?

Responsibility for covering the cost of agent commissions really boils down the pre-negotiated details of each specific deal. This is in contrast to historic practice nationwide, which saw home sellers covering the cost of both agent’s commissions, with the amount typically being deducted from sale proceeds.

Following a landmark lawsuit settlement in 2024, who pays which commission is now negotiated in advance. Still, buyers can always request some of their closing costs to be covered as a seller concession, including the cost of commissions. The seller doesn’t have to agree, but many do in the interest of keeping the deal alive. In a highly competitive real estate market, though, sellers may be less likely to grant such concessions.

Are New York real estate agents worth it?

You certainly don’t have to work with an agent if you don’t want to — there’s no law requiring you to do so, in New York or any state. But doing so is typically the best way to get the best price on your sale, or the home that best meets your needs if you’re buying. And in New York City specifically, an agent who is already familiar with your building or complex can be singularly useful, particularly if there’s a co-op board.

Agents are licensed pros who know the local market inside-out. They are ace negotiators and understand the details of making a deal in a way most laypeople don’t — they will be able to guide you through the entire transaction process and smooth over any bumps on the way. Yes, they get paid for their services, but the price is often worth it for the expertise they bring.

Saving on fees

That being said, a real estate agent’s commission is a costly part of a New York home purchase or sale. If you’d like to cut down on that cost, here are some options.

• Negotiate your agent’s commission: Negotiation is a key part of the real estate industry, and that extends to an agent’s commission. Ask if there’s any flexibility surrounding their rate. It’s possible that an agent may be willing to lower it to land your business, and even a slight discount can translate to big savings.
• Consider discount agents: You might also seek out a low-commision agent with companies like Redfin and Clever, who can charge commissions as low as 1 or 1.5 percent. Working with an agent that charges a flat fee is yet another option. These agents charges a fixed rate for their services, as opposed to a percentage of the home’s sale price.
• Go it alone: If you have the time and wherewithal, and want to avoid paying a seller’s agent commission, you could choose to handle the process on your own with a “for sale by owner” listing. This approach means you must do all of the work that’s typically handled by a real estate agent, including marketing, scheduling and hosting showings, negotiating a deal and managing the closing. It’s a lot, but it saves you a listing agent’s commission fee.
• Cash homebuyers: Are you in a hurry to sell your home? If so, you can expedite the process and forego an agent by selling directly to a local cash-homebuyer instead of opting for a traditional market sale. These companies are known for purchasing properties in nearly any condition, no matter how rough, and closing the deal very quickly, often in a few weeks or less. There’s a downside to all of this convenience, however: While you’ll save on commissions, you’ll also give up some potential profit. Cash homebuyers are in business to make a profit and this means they generally do not pay market value for the homes they buy.

Find a New York real estate agent

If you’re ready to hire a local agent, take the time to interview a few candidates before you decide on one. Start by seeing if friends, family or work colleagues can make recommendations. Don’t be afraid to ask questions: It’s best to find someone you can communicate with easily and that you feel you can trust, as well as someone who knows your local area well. And before making a final decision, be sure to check the agent’s online presence and reviews from past customers.