Real Estate Commission Calculator
In New York City, the seller of a home is responsible for paying the real estate broker’s commission for both the listing agent and the buyer’s agent. It’s important to note that the buyer’s agent doesn’t receive any commission directly from the buyer. If a home is for sale by the owner, the buyer may be asked to pay a commission if the seller is not paying one.
To help you understand the potential commission on a sale, we’ve created a calculator below. This can be useful information to consider when budgeting for a real estate transaction in NYC.
ELIKA New York: Real Estate Calculators
Table of Contents
Real Estate Commission Explained
- Commissions paid to the real estate agents and brokers are typically between 4% – 6% when selling a property in New York City.
- The seller pays the commission for both the listing agent and the buyer’s agent at closing time.
- In New York City, real estate agents are members of REBNY and thus participate in the Universal Co-Broke Agreement; this means the total commission is typically split 50% – 50% between the seller agent, the buyer’s agent, and their respective brokerage companies.
- Real estate agents and brokers share a percentage of their commission earned with the sponsored brokerage.
How the Commission is Co-Brokered in NYC
Most transactions in New York City are represented by a listing and a buyer’s agent; however, in this case, the listing agent is to see the property directly to a buyer; without an agent, they would collect the entire 5-6%. Below is an example of a typical transaction with two agents involved in the deal.
Broker Commission Split Example
Property for Sale: $1,000,000
Commission payable: $60,000
The $60,000 commission paid at closing and co-brokered between the
Seller’s Side 3%: $30,000 / Buyer’s Side 3%: $30,000
The Seller’s Agent and Buyer’s Agent 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