NYC Real Estate Commission After the NAR Settlement: What Changed and What Did Not

The average real estate commission in New York City held at 5.7% in 2026, nearly unchanged despite the National Association of Realtors settlement that took effect in August 2024. The settlement created mandatory buyer representation agreements and decoupled buyer-agent compensation from the MLS, but in NYC the effect has been more procedural than financial. In my 25+ years as a Licensed Real Estate Associate Broker in New York, I have seen commission structures shift before, and this shift moved the paperwork more than the percentage.

How NYC Commissions Are Structured

In a typical NYC transaction, the seller pays a total commission of 5% to 6% of the sale price at closing. That total is split between the listing broker and the buyer's broker, usually 50/50 but not always. On a $1.2 million sale with a 5.7% commission, the total fee is $68,400, split roughly $34,200 to each side.

Sellers negotiate commission with the listing broker before signing the listing agreement. Buyers negotiate with their agent before the first showing, through a buyer representation agreement. Under the new REBNY rules, the two negotiations are separate.

What Changed After the NAR Settlement

Three changes took effect in New York after August 2024.

Buyer representation agreements are required. Since 2025, a buyer's agent in New York must have a signed buyer representation agreement before showing any property. REBNY added this to its rules for member brokers. The agreement must specify the buyer's agent compensation, expressed as a dollar amount or percentage.

Seller's offers of compensation are no longer posted in the MLS. Listing brokers used to post a co-broke offer in the MLS, so buyer's agents knew the compensation before showing. Now it is negotiated separately.

Buyers can negotiate who pays their agent. If the seller agrees to cover the buyer's agent fee, it is paid through the transaction. If not, the buyer pays their agent directly. Most NYC sellers still offer buyer-agent compensation through the listing broker, but it is now negotiable rather than presumed.

How to Negotiate Commission as a Seller

The listing commission is always negotiable. Negotiating room grows with a higher price (the math works differently at $3 million than at $600,000) and with strong demand likely to produce multiple offers.

One thing has not changed: cutting the buyer-agent co-broke offer tends to shrink the buyer pool, because buyer's agents are more likely to show properties offering full compensation. A seller saving 0.5% on co-broke might lose bidders and net less than the saving.

Flat-fee listing services exist in NYC, but reaching the full buyer-broker market requires REBNY membership and RLS (REBNY Listing Service) access. A flat-fee service without RLS access limits a listing's exposure. The NYC home selling checklist covers the rest of that decision.

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How to Negotiate as a Buyer

Buyers can negotiate their agent's compensation before signing the buyer representation agreement. Ask any buyer's agent directly: what is your commission, and what happens if the seller offers less?

Fee transparency is now a baseline obligation under REBNY rules, so an agent who will not discuss compensation before you sign is worth reconsidering.

Buyers can also ask for a seller closing cost credit that includes buyer-agent compensation; the agent and attorney can structure it.

What "Dual Agency" Means for Commission

Dual agency, where one agent or one brokerage represents both buyer and seller, is permitted in New York with written consent from both parties. It can affect how commission is split and creates a conflict of interest the agent must disclose. The agent red flags guide explains how to spot undisclosed dual agency.

For the full process, see the NYC seller guide or the NYC buyer guide.