Broker compensation · Scenario planning
Model the commission before you price the deal.
Test a sale price and agreed compensation scenario, then evaluate the services, representation structure and written terms behind the number.
New York CityEstimate · Compare · Confirm
Interactive planning tool
Calculate a brokerage-compensation scenario.
Broker compensation is not set by law and is fully negotiable. Use the calculator to model an agreed percentage—not to assume a required or standard rate.
Understanding Real Estate Commissions in New York City
In New York City, real estate transactions typically involve commissions paid to the listing and buyer brokers, totaling between 4% and 6% of the property’s sale price.
The Seller’s Responsibility
Traditionally, the seller was responsible for paying commissions to both the listing agent and the buyer’s agent at closing. Although the new regulations allow the seller to decide whether to pay a buyer’s agent, most home sellers also continue to see the value in paying the buyer’s agent for broader home marketing.
Co-Brokering Commission in NYC
Most New York City transactions involve a listing agent and a buyer’s agent. However, in cases where the listing agent directly sells the property to a buyer without the involvement of a buyer’s agent, the listing agent would receive the full commission.
Example Transaction Breakdown
Here’s a typical breakdown of a transaction involving both a listing and a buyer’s agent:
- Listing Agent Commission: 2% to 3%
- Buyer’s Agent Commission: 2% to 3%
This structure ensures fair compensation for both the listing and buyer’s agents involved in facilitating the sale.
Real Estate Broker Commission Split Example
Property for Sale: $1,000,000
Commission payable: $60,000
The $60,000 commission was paid at closing and co-brokered between the
Seller’s Side 3%: $30,000 / Buyer’s Side 3%: $30,000
The Seller’s and Buyer’s agents then split the commission with their brokerage.
Seller’s Side: Agent 1.5% = $15,000 and Brokerage 1.5% = $15,000
Buyer’s Side: Agent 1.5% = $15,000 and Brokerage 1.5% = $15,000
Frequently asked questions
Use the estimate with the right context.
Are NYC real estate commissions fixed by law?
No. New York’s Department of State states that the amount and terms of broker compensation are negotiable. They should be agreed in the applicable written representation agreement.
How does the commission calculator work?
It multiplies the entered sale price by the selected percentage. The result is a scenario and does not establish what any client must agree to pay.
Can compensation be structured as something other than a percentage?
Depending on the services, parties and applicable rules, compensation may be discussed in different objectively ascertainable forms. The written agreement should state the amount or method clearly.
Does the calculator show the seller’s complete closing cost?
No. Transfer taxes, legal fees, building charges, payoff expenses, credits and other closing items are separate. Use the seller closing-cost calculator for a broader estimate.
Terms should follow the service
Choose the strategy, scope and representation before choosing the number.
Discuss a property saleCompensation planning
Brokerage compensation belongs in the net sheet—not in a fixed assumption.
Real-estate compensation is negotiable and should be modeled using the actual written agreement and transaction structure rather than relying on a universal percentage.
Start with the signed engagement.
The listing or representation agreement should state the services, compensation structure and obligations that apply to the transaction.
Model more than one outcome.
Different sale prices, compensation structures and negotiated credits can materially change the seller’s estimated proceeds.
Evaluate scope, not percentage alone.
Preparation, marketing, valuation, negotiation, showing management and transaction coordination can differ materially among engagements.
Do not assume how another broker is compensated.
Any compensation offered or requested in a transaction should be disclosed and documented according to the applicable agreements and current rules.
Combine compensation with all other selling costs.
Transfer taxes, legal fees, payoff, building charges and adjustments should be modeled alongside brokerage compensation.
Use current documents for the final number.
The calculator is for planning. The executed agreements and closing statement control the actual transaction amounts.