Real Estate Commission Calculator
The NYC real estate market changed significantly on January 1st, 2024. Traditionally, sellers covered the entire commission, co-brokered between the listing and buyer’s agents. Now, sellers can choose to separate the buyer’s agent commission. This empowers them to decide on buyer agent compensation, placing the responsibility on the buyer if they choose not to pay one.
Despite this shift, many NYC sellers offer a buyer’s agent commission. This strategic move incentivizes a broader range of agents to bring qualified buyers, potentially speeding up and smoothing the sales process. Buyers retain the freedom to hire an agent even if the seller doesn’t offer a commission. In such cases, the buyer compensates their agent directly.
Commission Calculator
Our commission calculator, provided below, offers valuable assistance in understanding and estimating the potential costs of selling your home. For a comprehensive breakdown of all potential closing costs, visit our seller closing cost calculator.
ELIKA New York: Real Estate Calculators
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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