W
hether you're buying or selling in New York's housing market, understanding real estate commissions is crucial. Recent changes aim to increase transparency and communication regarding commission fees, giving both buyers and sellers greater control over costs.

    The current state of the New York housing market shows a median home sale price of $549,000, with 48,576 homes available (-2.2% YoY) and 46.7% sold above list price (+0.5 pts YoY).

    Real estate commissions are fees paid to agents for facilitating transactions, usually calculated as a percentage of the final sale price. Traditionally, sellers covered both their agent's commission and the buyer's agent fee. However, starting August 17, 2024, buyers must sign an agreement specifying their agent's commission before viewing properties.

    Average real estate commission rates in New York vary depending on location, market conditions, and services provided by agents. In major cities like New York City, Buffalo, and Yonkers, typical commission costs range from $8,175 to $41,000 for a 1.5% to 3% commission rate.

    Real estate commissions in New York are negotiable, with agents often open to adjusting rates based on transaction details, services provided, and property appeal. When negotiating, consider factors like an agent's local market expertise, marketing strategies, and home condition.

    Tips for successful negotiation include consulting multiple agents, offering incentives, and using property appeal to leverage lower commission fees.

    Recent changes to real estate commissions in New York include:

    * Buyers must sign a document outlining their agent's fee before viewing homes.

    * Buyer agent commissions are no longer visible in MLS listings in many markets.

    These changes impact buyers by requiring them to agree to their agent's commission in writing before home tours, while sellers now need to determine how much they're willing to contribute toward the buyer's agent fee. To find a real estate agent in New York, consider working with Redfin agents who can guide you through each step of the transaction.

    To avoid fees, selling a home without an agent (FSBO) allows you to bypass commission costs, but you'll be responsible for all aspects of the sale.