NYC Real Estate Commission Guide 2026: What Buyers and Sellers Pay

NYC sellers typically pay a total commission of 5% to 6% of the sale price, so a $1 million sale carries $50,000 to $60,000, usually split between the listing agent and the buyer's agent. No law sets that rate, and since the 2025 rule changes every listing agreement and buyer representation agreement must say in conspicuous language that commissions are fully negotiable. A co-op's flip tax is a separate fee, and the buyer's mansion tax is a separate tax.

I have negotiated deals for 25+ years across Manhattan, Brooklyn and Queens, and I am asked about commission more than almost any other topic.

What Sellers Pay

The seller pays the commission at closing. Of the typical 5% to 6%, each side commonly receives 2.5% to 3%, and each agent then splits their portion with their brokerage under their own agreement.

The arithmetic is mine; the 5% to 6% range is the rate commonly quoted for NYC. The commission is negotiable, and a seller who cuts the buyer's side should expect it to affect how many buyers' agents bring clients to the property.

What Buyers Pay

Before any showing, a REBNY member broker needs a written Buyer Representation Agreement, in force since January 2025. That agreement states how the buyer's broker is paid and the rate, and it carries the same conspicuous notice that commissions are negotiable. The RLS does not collect or display compensation, and any offer of compensation to the buyer's broker comes from the seller.

Read the compensation section before you sign, since agreements differ and some set the buyer's commission at zero. On new development, the sponsor sets the terms for buyers' brokers, so ask for them in writing before touring the sales gallery.

What the Commission Pays For

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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.

What Changed in 2025

Commissions for REBNY member brokers were decoupled in January 2025, an outcome of the National Association of Realtors' $418 million antitrust settlement. Four changes follow from it:

• Buyers sign a written agreement with their broker before any showing.
• Compensation is not shown on the RLS or in property descriptions.
• Listing and buyer agreements carry a conspicuous notice that commissions are negotiable.
• A broker cannot describe services as free unless they receive zero compensation from any source.

New York Rules That Protect Both Sides

Under New York's license law, net listings are illegal, and commission can be paid only to licensed individuals or firms. A broker cannot take compensation from more than one party without full knowledge and consent (19 NYCRR 175.7). On the RLS, a commission is earned and payable only at closing for registered prospects. Ask any broker, including me, to put the compensation terms in writing before you sign.

Costs That Are Not Commission

Co-op flip tax: a separate fee paid to the co-op corporation at closing, set by each building's rules and deducted from the seller's proceeds in addition to commission. The flip tax guide and the closing costs guide show the full list.

Mansion tax: on purchases of $1M or more, the buyer pays the mansion tax, from 1% to 3.9% depending on price. Budget for it next to any buyer's commission obligation.

Sources: REBNY RLS Uniform Co-Brokerage Agreement (2025 revisions); Brick Underground, buyer representation agreement checklist coverage; Hauseit, typical NYC commission.