When you sell a house in New York, one line on the settlement statement often dwarfs everything else: the real estate commission. On a $500,000 sale, a typical commission adds up to more than $23,000 — more than the transfer taxes, attorney fees, and title costs combined. And the way that money gets split up changed significantly in August 2024, when new industry rules took effect nationwide.
This guide explains how real estate commissions work for New York sellers in 2026: what the fees are, who gets paid, how the national commission settlement reshaped the process, current rates in New York City and Long Island, and how to keep more of your equity.
What Is a Real Estate Commission?
A real estate commission is a fee paid to licensed agents for their role in a home sale. It is calculated as a percentage of the final sale price and is paid at closing, deducted from the seller’s proceeds — you don’t write a check upfront.
Traditionally, two agents were involved in most sales: a listing agent (who represents you, the seller) and a buyer’s agent (who represents the buyer). Historically, the seller paid the full commission, which was then split between the two sides through an arrangement advertised on the Multiple Listing Service (MLS). That long-standing default is what the 2024 settlement dismantled, so it helps to understand exactly what changed.
How the NAR Settlement Changed Commissions
In 2024, the National Association of Realtors (NAR) agreed to pay $418 million to settle class-action lawsuits alleging that its rules artificially inflated commission costs for home sellers. Final court approval came in November 2024, but the two key practice changes took effect on August 17, 2024:
- Buyer-agent compensation can no longer be advertised on the MLS. The field where listing agents used to state what the buyer’s agent would be paid is gone. Any offer to contribute to the buyer’s agent must now be negotiated off the MLS or written directly into the purchase contract.
- Buyers must sign a written agreement with their agent before touring homes. That agreement spells out the agent’s fee, states that fees are negotiable, and identifies who is expected to pay it.
There is a New York wrinkle worth knowing: many brokerages in New York City and the surrounding region operate under REBNY (the Real Estate Board of New York) rather than NAR, and REBNY implemented its own parallel rule changes, as a Long Island brokerage’s explanation of how the settlement applies locally notes. The principle is the same — buyer compensation is now separately negotiated and documented, not bundled invisibly into a seller-side split.
Average Real Estate Commission Rates in New York in 2026
According to a 2026 survey of commission rates by state, New York’s average total commission is about 4.62% of the sale price — among the lowest in the country and below the national average of 5.46%. That breaks down to roughly 2.41% for the listing agent and 2.21% for the buyer’s agent.
What that means in dollars:
- On a $395,000 sale — about $18,250 in commission
- On a $527,000 sale (roughly the New York median) — about $24,300
- On a $1,316,800 sale — about $60,800
Keep in mind these are averages. In practice, rates vary by market, price point, and how much leverage you have when negotiating. There is no law in New York setting commission rates — any agent who tells you a rate is “standard” is describing a local norm, not a legal requirement.
New York City and the five boroughs
Within the city, Clever Real Estate’s NYC commission survey found an average listing commission of 2.57%, with most listing rates falling between 2.00% and 4.00%. When sellers also offer a concession toward the buyer’s agent, the total averages about 4.95%. On New York City prices, small percentage differences translate into big money — the gap between 2% and 3% on an $800,000 sale is $8,000.
Long Island, upstate, and the rest of the state
Outside the five boroughs, rates broadly track the state average of 4.62% total, though they can run a bit higher in slower or lower-priced markets where agents handle fewer transactions. Nassau and Suffolk counties sit close to the New York City metro pattern, while some upstate markets skew toward the higher end of the national range.
Who Pays the Commission When You Sell in New York?
The seller is always responsible for paying their own listing agent, as agreed in the listing contract you sign. Whether you also pay anything toward the buyer’s agent is now a genuine choice rather than an automatic term.
Before the settlement, sellers routinely covered both sides and buyers rarely thought about what their agent cost. Now buyers negotiate their agent’s compensation directly in their written agreement. As a seller, you can still choose to offer a concession toward the buyer’s agent — and many listing agents recommend it, since some buyers can’t easily afford to pay their agent on top of a down payment and closing costs — but you are no longer obligated to do so. If you don’t offer a concession, the buyer pays their agent separately, typically out of pocket at closing.
This is the single most consequential change for sellers: the buyer’s side is no longer bundled into your bill by default. Whatever you offer (or don’t offer) toward the buyer’s agent is negotiated property by property, not set by the MLS.
How and When Commission Gets Paid
Commission is paid at closing, taken directly from your sale proceeds before you receive your check. The title or closing company disburses the agreed amounts to each brokerage, and each agent then splits their share with their brokerage under a separate agreement — so the “listing commission” you negotiate isn’t the full amount your individual agent keeps.
The commission is calculated on the final sale price, not on your profit. If you sell for $500,000 and still owe $380,000 on the mortgage, a 4.62% commission still comes out to $23,100. That is why commission belongs in your closing costs for sellers in New York math from the very start.
Are Commissions Negotiable in New York?
Yes — every commission rate in New York is negotiable. Pre-closing disclosure forms must now include a clear, conspicuous notice that commissions are negotiable, and written buyer agreements state the same.
Negotiation works best when you treat it like any other contract term:
- Interview multiple agents. Compare listing rates, marketing plans, and recent sale records side by side.
- Tie the rate to the work. An agent listing a turnkey home in a hot Queens neighborhood with multiple expected offers may earn a lower rate than one taking on a difficult, long-marketing-period sale.
- Ask about tiered or flat-fee options. Some brokerages offer reduced listing fees, flat fees, or sliding scales tied to the sale price.
- Negotiate the buyer-side concession separately. Decide deliberately how much, if anything, you’ll contribute toward the buyer’s agent — don’t let it ride along silently with the listing rate.
How New York Sellers Can Cut or Avoid Commission Costs
If commissions are your biggest selling expense, they’re also your biggest potential savings. New York sellers have a few legitimate paths:
Negotiate a lower listing rate. In a competitive market like New York City, agents routinely accept rates below the 2.57% average, and discount brokerages advertise full-service listing fees well below that.
Decline or reduce the buyer-agent concession. You can choose to offer the buyer’s agent nothing, a reduced percentage, or a flat dollar amount. Weigh this against your home’s price point — in competitive seller’s markets, low concessions cost you less; in buyer’s markets, they can shrink your buyer pool.
Consider flat-fee or limited-service listings. Some services list your home on the MLS for a fixed fee, leaving you to handle showings and negotiations yourself. This works best if you’re comfortable with contracts and pricing strategy.
Sell without an agent entirely. Going the FSBO route eliminates commission on both sides, but it means managing pricing, marketing, buyer vetting, and legal paperwork yourself. Our guide to selling your house without a realtor in New York walks through what that takes.
Sell directly to a cash buyer. When you sell your house fast in New York through a direct cash sale, there is no listing agent and typically no buyer’s agent — which means no commissions at all. That alone can save you the full 4.62% or more. It’s worth comparing that saving against how much cash buyers pay for houses in New York to see the complete picture of your net proceeds.
Frequently Asked Questions
What is the average real estate commission in New York in 2026?
About 4.62% of the sale price in total — roughly 2.41% to the listing agent and 2.21% to the buyer’s agent — according to a 2026 state-by-state survey. In New York City, the average listing commission alone is about 2.57%.
Do New York sellers still have to pay the buyer’s agent?
No. Since August 2024, sellers are not obligated to pay the buyer’s agent. You may still offer a concession to attract buyers, but it is a negotiated choice, not a default.
Are real estate commissions negotiable in New York?
Yes. There is no law setting commission rates in New York, and disclosure rules now require agents to state that fees are negotiable. You can negotiate both your listing rate and any buyer-agent concession separately.
When do I pay the commission when selling my house?
At closing. The commission is deducted from your sale proceeds before you receive your funds — you don’t pay anything upfront.
How can I avoid paying commission when selling my New York home?
You can negotiate a lower rate, skip the buyer-agent concession, use a flat-fee listing service, sell FSBO, or sell directly to a cash buyer — which typically involves no agents and therefore no commissions. To see how a commission-free offer compares, you can get a free cash offer for your property.
The Bottom Line: What New York Commissions Mean for Your Sale
Real estate commission is almost always the largest single cost of selling a home in New York — often $20,000 or more on a typical sale. The post-2024 rules give you more control than ever: the buyer’s side is no longer bundled into your bill by default, every rate is negotiable, and everything must be disclosed in writing. Run the numbers on your own sale price before you sign anything, negotiate both sides of the fee separately, and compare your net proceeds across every selling path — because on a New York home, a single percentage point of commission is real money.
Jeff is part of the team at Cash Buyers NY, a cash home-buying company serving New York City and Long Island from Bellerose, Queens. The company buys houses as-is in any condition — no repairs, no agents, no commissions, and no financing contingencies — through a straightforward cash-offer process. Jeff covers the questions New York homeowners actually ask: how long a cash sale takes, what it costs, how co-op boards and inheritance work, and when selling as-is makes sense.
