What Buyers and Sellers Need to Know Today
When you sell a home in New York City, you pay your listing agent. Whether you also pay the buyer’s agent is now your decision, made in writing, and most Brooklyn sellers still make it. When you buy, your agent’s pay is set out in a written agreement you sign before you start, and in most Brooklyn deals the seller still covers it.
That’s the short version. The rest explains how it got here, what commission runs in Brooklyn, and what you can negotiate.
Who Pays the Agents in New York
The seller pays the listing agent. That part hasn’t changed.
The buyer’s agent is paid one of two ways. The seller can offer compensation in writing, directly to the buyer’s agent’s brokerage, paid at closing. If the seller doesn’t, the buyer’s agreement with their agent decides what happens next: the buyer pays, or the agent negotiates for it as part of the offer.
In Brooklyn, the first path is still the most common one. I rarely have a buyer pay my commission out of pocket.
What Changed, and When
New York City moved before the rest of the country. Four dates matter.
January 1, 2024. Under rules set by REBNY, the Real Estate Board of New York, listing brokers can no longer offer or pay compensation to buyer’s agents. Any offer has to come from the seller, directly.
August 17, 2024. The national NAR settlement took effect. Compensation offers came off the MLS, and buyers working with agents on those listings must sign a written agreement before touring.
January 13, 2025. REBNY began requiring written buyer agreements on every transaction through its listing service. Those agreements must state that commissions are not set by law and are fully negotiable.
August 1, 2025. REBNY set this as the date compensation fields would come off its listing service. What a seller offers is now something a buyer’s agent asks about, not something they read on the listing.
What hasn’t happened is a new state law. As of November 2026, two bills in Albany, S9564 and A8910, would write the buyer agreement requirement into New York law. Neither has left committee.
How Much Commission Runs in Brooklyn
For decades, the standard in New York City was 5 to 6% of the sale price, paid by the seller and split between the two agents. The total hasn’t moved much. What changed is that each half is now its own negotiation.
In my practice, I typically agree to 2.5 to 3% as the listing agent. I encourage sellers to offer the buyer’s agent something similar, because listings that do draw more buyers and close more reliably. If no buyer’s agent is involved and I represent both sides, the fee goes up to reflect the added work. All of it is set before the listing goes live.
Yes, It’s Negotiable
Commission in New York is not set by law, and every buyer agreement on REBNY’s listing service now has to say so. That was always true. The difference is that it’s now in writing at the start of every deal.
The rate is rarely the number that matters most. On a $1.5 million sale, half a point of commission is $7,500. Pricing the same home $50,000 too low costs more than six times that. What a commission pays for is pricing, presentation, and how offers are handled.
If You’re Selling in Brooklyn
Offering buyer-agent compensation is now part of your pricing strategy. It isn’t required. Most Brooklyn sellers still offer it, because most serious buyers here are working with an agent, and those agents are more likely to show homes where their pay is settled.
The offer comes from you, in writing. It can be a percentage or a flat amount. My Seller’s Guide covers the full cost of a sale, or you can start with a free home valuation.
If You’re Buying in Brooklyn
Before your agent shows you a home, you’ll sign a written agreement. It says who represents you, what your agent is paid, and who pays it. Read it like any other contract, and ask what happens if a seller doesn’t offer to pay your agent.
In most Brooklyn deals, the seller does. When one doesn’t, your agent should tell you before you fall for the apartment, not after. My Buyer’s Guide covers the rest of the process.
Common Questions
Does the seller pay the realtor fees in New York?
The seller pays the listing agent’s commission. Most Brooklyn sellers also choose to pay the buyer’s agent, through a written offer made directly to the buyer’s agent’s brokerage and paid at closing. Since 2024, that second payment is a choice, not a default.
Who pays the buyer’s agent commission in NYC?
Usually the seller, if the seller has offered compensation in writing. If not, the buyer’s written agreement with their agent decides it: the buyer pays, or the agent negotiates for it as part of the offer. I have yet to have a buyer pay my commission out of pocket.
What is the average real estate commission in New York?
Historically, 5 to 6% of the sale price in total, split between the listing agent and the buyer’s agent. In my practice, listing commissions typically run 2.5 to 3%, buyer’s agent compensation is usually offered at a similar level, and every rate is negotiated before the listing goes live.
Can I negotiate real estate commission in NYC?
Yes. Commission is not set by law, and buyer agreements on REBNY’s listing service must say it is fully negotiable. For sellers, the better question is what the commission pays for: pricing, presentation, and how offers are handled.
Can a real estate agent get a commission after the listing agreement expires?
Sometimes. Many exclusive listing agreements include a protection period: if a buyer who saw the home during the listing buys it within a set window after it ends, the agent may still be owed the commission. Whether that applies depends on the wording of your agreement, so read that clause before you sign.
Is there a new New York State law on real estate commissions?
Not yet. As of November 2026, two bills in Albany (S9564 and A8910) would require written buyer agreements statewide, but neither has left committee. The rules in place in New York City come from REBNY and the national NAR settlement.
Do the new commission rules apply to rentals?
No. These rules cover sales. Rentals fall under the FARE Act, a New York City law in effect since June 11, 2025, which requires whoever hires the broker to pay the broker’s fee. In most cases, that is the landlord.
Work With Craig
If you're buying or selling in Brooklyn and want a clear picture of how commissions work in the current environment, I'm happy to walk you through it.
