Whether you’re a new agent preparing to work in Buffalo or an aspiring agent dreaming of Manhattan listings, understanding NY real estate commission rates is one of the first steps toward a successful career. In New York’s dynamic property market, these figures can vary significantly depending on location, property type, and market conditions.
As an agent, mastering this knowledge is essential for setting clear expectations and confidently communicating your value to every client. This guide breaks down exactly how real estate commissions work in the Empire State, the average rates you can expect in 2026, and the industry standards for who typically covers these costs.
Key Takeaways
- Commissions Are Negotiable: Real estate commission rates are not set by law and can be negotiated between agents and their clients.
- Rates Vary by Region: Expect differences in average rates when comparing New York City to Upstate markets like Buffalo.
- Splits Are Common: The total commission is typically divided between the listing agent and the buyer’s agent (and their respective brokerage).
- Sellers Often Pay: Traditionally, sellers cover the commission, but regulations have shifted how buyer-agent compensation is handled.
Understanding Real Estate Commission
At its core, a real estate commission is a fee paid to real estate agents for their services in helping buyers and sellers navigate the complex process of a property transaction. Rather than a flat salary, agents typically earn a percentage of the property’s final sale price.
Historically, the total commission was often set at a standard percentage and split between the listing agent (who represents the seller) and the buyer’s agent. However, recent industry changes have brought more transparency and flexibility to these arrangements, emphasizing that commissions are always negotiable.
Average Commission Rates in New York
While there is no federally or state-mandated standard commission rate, market data provides a clear picture of what you can expect to see across New York.
Statewide average
Recent data indicate that the average real estate commission rate in New York hovers around 4.66% to 5.36%. This total is generally split between the listing agent and the buyer’s agent.
City-specific averages
New York is a state of contrasts, and real estate commissions are no exception. Rates in the high-density, complex market of New York City often differ from those in the rest of the state.
- Manhattan & NYC: In Manhattan and many parts of New York City, total commissions typically range from 5% to 6%. This is often split equally, with 2.5% to 3% going to the listing broker and 2.5% to 3% to the buyer’s broker.
- Upstate: In Upstate markets like Buffalo, recent surveys suggest an average total commission of approximately 4.66%.
- Brooklyn & Queens: These boroughs generally see rates between 3% and 6%, depending on the brokerage and property type.
Factors Affecting Commission Rates
Commission rates are not static; they fluctuate based on several factors.
Current trends
The real estate industry has seen significant shifts recently, particularly following the National Association of REALTORS (NAR) settlement in 2024. One of the biggest changes is the requirement for written buyer agreements before touring a home. Additionally, offers of compensation for buyer brokers can no longer be published on the Multiple Listing Service (MLS). These changes encourage more direct negotiation and transparency regarding fees.
Market conditions
The balance of power between buyers and sellers also plays a role.
- Seller’s Market: When inventory is low and demand is high (a seller’s market), homes sell quickly. Agents might be willing to accept a slightly lower commission rate because they know the property will require less marketing time and expense.
- Buyer’s Market: When there are many homes for sale and fewer buyers (a buyer’s market), selling a property takes more effort and marketing dollars. In these conditions, commission rates might hold steady or increase to incentivize agents to work harder to sell the listing.
The Mechanics of Real Estate Commission in New York
Understanding how the money moves is just as important as knowing the percentages.
Commission splits and distribution
The “total commission” discussed above isn’t a single check that goes into one person’s pocket.
- Role of Agents: The listing agent markets the property, arranges showings, and represents the seller’s interests. The buyer’s agent brings qualified buyers to the table, negotiates on their behalf, and guides them through the purchase.
- Commission Splitting: The total commission is usually divided between the listing brokerage and the buyer’s brokerage. From there, each brokerage takes a cut (the “broker split”) to cover overhead and resources, before paying the remaining amount to the individual real estate agent.
Who pays real estate commission?
- Typical Payment Structures: Traditionally, the seller pays the total commission fee at closing. This fee is then typically split between the listing agent and the buyer’s agent. This practice has been common because the seller receives the proceeds from the sale.
- Negotiability: It is crucial to remember that commissions are fully negotiable. Sellers can negotiate the rate with their listing agent. Furthermore, with recent NAR rule changes, buyers are now more directly involved in negotiating their agent’s fee, and sellers are not obligated to offer compensation to buyer agents (though many still do to attract more buyers).
Additional Considerations and FAQs
Navigating the legal and mathematical side of commissions ensures you aren’t caught off guard.
Legal and regulatory aspects
- Disclosure Laws: New York State law is strict about transparency. Agents are required to disclose who they represent and how they are paid. Per the Department of State, brokers must make it clear for which party they are acting and cannot receive compensation from more than one party without full knowledge and consent.
- Dual Agency Fees: “Dual agency” occurs when one agent (or brokerage) represents both the buyer and the seller in the same transaction. In New York, this is legal only with written informed consent from both parties. Because the agent handles both sides of the deal, the total commission may be negotiated down, though this varies by brokerage policy.
Practical calculations
To visualize what these percentages mean for your wallet, let’s look at a few examples based on average home prices and commission rates.
- Manhattan Apartment ($1,000,000 Sale Price)
- Rate: 6% Total Commission
- Calculation: $1,000,000 x 0.06 = $60,000
- Split: Typically $30,000 to the listing broker and $30,000 to the buyer’s broker. The brokerage then pays the agents their splits.
- Buffalo Home ($240,000 Sale Price)
- Rate: 4.66% Total Commission
- Calculation: $240,000 x 0.0466 = $11,184
- Split: Approximately $5,592 to the listing side and to the buyer’s side.
Are you ready to earn these impressive commissions? First, learn how to become a real estate agent in New York.
Your Future in Real Estate Starts Here
Understanding commission rates is just the beginning of a rewarding career in real estate. Whether you’re motivated by the potential for financial independence or the freedom to build your own schedule, the right education is the foundation of your success.
At Colibri Real Estate, we have spent over 25 years helping aspiring agents like you transform their lives.
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Disclaimer: This guide is for general informational purposes only, based on a September 2025 survey of Colibri Real Estate School alumni and publicly available industry sources. While Colibri Real Estate School strives for accuracy, we make no guarantees regarding the completeness, reliability, or applicability of the information. Earnings and outcomes vary widely based on factors like location, experience, and market conditions and should not be considered guarantees. This guide does not constitute professional advice. Users should consult additional sources for personalized guidance.
