T
he Real Estate Commission Conundrum in New York

    In the Empire State, selling a home has long been a costly affair, with sellers footing the bill for both their own agent's commission and that of the buyer's agent. This meant that when a median-priced home sold for $576,400, as it did in February 2025, the combined commission of up to 6 percent could translate to a whopping $34,000.

    However, a landmark lawsuit settlement in 2024 shook things up, allowing buyers and sellers to negotiate their own agent commissions. While this may put more pressure on homebuyers, sellers now have the potential to retain a larger share of their proceeds.

    So, how much do real estate commissions really cost in New York? According to Clever Real Estate, the combined commission for both agents is 5.36 percent. On a median-priced home, that's $30,895. But if you're only paying your own agent, the cost drops significantly – listing agents earn an average of 2.72 percent, while buyer's agents take around 2.64 percent.

    Commission costs vary wildly across New York, with Manhattan sellers facing a whopping $68,152 in combined commissions on a median-priced home sale. In contrast, Albany sellers might pay just $13,346. Here are some examples:

    * Manhattan: $1,271,498 (median home-sale price), $68,152 (combined commission), $34,585 (listing agent commission only), $33,568 (buyer's agent commission only)

    * Hempstead: $634,000 (median home-sale price), $33,982 (combined commission), $17,245 (listing agent commission only), $16,738 (buyer's agent commission only)

    * Albany: $249,000 (median home-sale price), $13,346 (combined commission), $6,773 (listing agent commission only), $6,574 (buyer's agent commission only)

    * Buffalo: $178,750 (median home-sale price), $9,581 (combined commission), $4,862 (listing agent commission only), $4,719 (buyer's agent commission only)

    What do you get for your money? Real estate agents provide a range of services, from pricing and marketing to negotiating deals. They'll help you navigate the complex world of real estate, ensuring that all paperwork is in order and that you get the best possible deal.

    But who pays these commissions? In New York, it's now up to buyers and sellers to negotiate their own agent fees. While buyers can request concessions from sellers, including commission costs, sellers aren't obligated to agree. In a competitive market, however, they may be more willing to grant such requests.

    Are real estate agents worth the cost? Absolutely – they bring expertise and negotiation skills that can make all the difference in getting the best price for your home or finding the perfect property. But if you're looking to save on fees, there are options available:

    * Negotiate with your agent: Ask if they'll lower their commission rate.

    * Consider discount agents: Companies like Redfin and Clever offer reduced commissions – sometimes as low as 1 percent.

    * Go it alone: If you have the time and expertise, consider a "for sale by owner" listing to avoid paying a seller's agent commission.

    * Cash homebuyers: Expedite the process with a cash buyer, but be aware that you'll likely sacrifice some profit.

    When searching for an agent, ask friends and family for recommendations, interview potential candidates, and check online reviews. Trust your instincts – finding someone who knows your local area well and can communicate effectively is key to a successful transaction.