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. That settlement created mandatory buyer representation agreements and formally decoupled buyer-agent compensation from the MLS, but in NYC the practical effect has been more procedural than financial. Understanding the new rules matters whether you are buying, selling, or both.
In my 25+ years as a Licensed Real Estate Associate Broker in New York, I have seen commission structures shift before. The 2024 NAR changes are real and require attention, but the fundamentals of how compensation works in this market have not changed as dramatically as national headlines suggested.
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.
| Sale Price | Total at 5.7% | Listing Side (~50%) | Buyer Side (~50%) |
|---|---|---|---|
| $600,000 | $34,200 | $17,100 | $17,100 |
| $1,200,000 | $68,400 | $34,200 | $34,200 |
| $2,500,000 | $142,500 | $71,250 | $71,250 |
| $5,000,000 | $285,000 | $142,500 | $142,500 |
Sellers negotiate commission with the listing broker before signing the listing agreement. Buyers now negotiate compensation with their agent before the first showing through a buyer representation agreement. These two negotiations are legally separate under the new REBNY rules.
What Changed After the NAR Settlement
Three specific changes took effect in New York following the August 2024 NAR settlement implementation:
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. This is not optional, and REBNY has incorporated it into 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. Under the old system, listing brokers posted a co-broke offer in the MLS, and buyer's agents knew the compensation before showing. Now that offer is negotiated separately, either before or during the transaction.
Buyers can negotiate who pays their agent. If the seller agrees to cover the buyer's agent fee as part of the deal, it flows through the transaction. If the seller refuses, the buyer pays their agent directly. In practice, most sellers in NYC continue to offer buyer-agent compensation through the listing broker to maximize buyer pool. But it is now legally negotiable rather than presumed.
What Your Buyer Representation Agreement Must Include
- The agent's compensation, stated as a specific percentage or flat fee. Vague ranges are not acceptable under REBNY rules.
- The geographic area and property type covered by the agreement.
- The duration of the agreement (typically 3 to 6 months).
- A clear statement of what happens if the seller pays less than the agreed amount: does the buyer make up the difference, or does the agent accept less?
How to Negotiate Commission as a Seller
The listing commission is always negotiable. A few factors that give sellers more leverage: a high-priced property (the math works differently at $3 million than at $600,000), a property in strong demand with likely multiple offers, and a seller willing to handle some of the coordination work themselves.
What does not change: reducing the buyer-agent co-broke offer tends to shrink the buyer pool. Buyer's agents are more likely to show properties offering full co-broke compensation. A seller saving 0.5% on co-broke might lose multiple bidders and net less than they saved. This dynamic has not changed post-settlement.
Flat-fee listing services are available in NYC but come with limitations. REBNY membership and RLS (REBNY Listing Service) access are required to reach the full buyer-broker market. A flat-fee service that lacks RLS access limits your listing's exposure. Review the NYC home selling checklist before making this decision.
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Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
How to Negotiate as a Buyer
Buyers now have explicit leverage they did not formally have before: you can negotiate your 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?
The answer tells you a lot about the agent. A buyer's agent who refuses to discuss compensation before signing an agreement is worth reconsidering. Transparency about fees is now a baseline professional obligation under REBNY rules.
Buyers can also negotiate seller concessions that offset the buyer-agent fee. In a market where sellers are motivated, asking for a credit toward closing costs that includes buyer-agent compensation is a legitimate negotiating position. Your agent and attorney can structure this appropriately.
Questions About Commissions in Your Specific Transaction?
Talk to MiltonWhat "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 is worth knowing because dual agency can affect how commission is split and creates a conflict of interest that the agent must disclose. See the agent red flags guide for how to identify when dual agency is not being disclosed properly.
Commission is one of the largest line items in any real estate transaction. Understanding how it works before you are at the closing table puts you in a stronger negotiating position throughout the process. Review the full NYC seller guide or the NYC buyer guide depending on which side of the table you are on.
