Realtor Commission in NY: What You Actually Pay (2026)

How Realtor Commission Works in New York

Real estate agent commission is the fee paid for professional representation in a home sale. In New York, commission has historically been paid by the seller from the sale proceeds and split between the listing agent's brokerage and the buyer's agent's brokerage. I am Ethan Harris, a licensed agent with Empire Real Estate Firm in the Capital Region, and I believe every client deserves a clear, honest explanation of how commission works — before they sign anything.

Typical Commission Rates in the Capital Region

In the Albany, Saratoga, Schenectady, and Rensselaer County markets, total commission typically ranges from 5% to 6% of the sale price. This is split between the listing side and the buyer's side — usually evenly, though the split can vary. On a $300,000 sale at 5.5% total commission:

• Total commission: $16,500
• Listing agent's brokerage: $8,250 (2.75%)
• Buyer's agent's brokerage: $8,250 (2.75%)

It is important to understand that the agent does not keep the full commission. The brokerage takes a split — typically 20%–40% — and the agent covers their own expenses (marketing, licensing, insurance, technology, continuing education). The agent's actual take-home on a $300,000 sale at 2.75% might be $4,000–$6,000 before taxes.

What Changed After the NAR Settlement (2024)

The National Association of Realtors (NAR) settled a major class-action lawsuit in 2024, which changed several industry practices nationwide:

Key Changes

• No more blanket offers of buyer agent compensation on MLS — Sellers are no longer required to offer compensation to buyer's agents through the MLS system
• Buyer representation agreements required — Buyers must now sign a written agreement with their agent before touring homes, specifying the agent's compensation
• Commission is explicitly negotiable — It always was, but the settlement reinforced this

What This Means in Practice in the Capital Region

Despite the settlement's changes, the day-to-day reality of commission in the Capital Region has not shifted as dramatically as some predicted. Here is what I am seeing:

• Most sellers still choose to offer buyer agent compensation because it attracts the widest pool of buyers and typically results in a higher sale price
• Buyer representation agreements are now standard — buyers should read them carefully and understand the compensation terms before signing
• Some sellers are offering reduced buyer agent compensation (2%–2.5% instead of 2.75%–3%) and buyers may need to negotiate their agent's compensation separately
• In competitive listings with multiple offers, seller-offered buyer agent compensation remains the norm

The bottom line: commission structures have become more transparent and more negotiable, but the total cost of representation has not fundamentally changed in this market.

Who Pays the Commission?

Traditionally in New York, the seller pays the total commission, which is deducted from the sale proceeds at closing. After the NAR settlement, there are now several possible scenarios:

• Seller pays both sides — Still the most common arrangement in the Capital Region
• Seller pays listing agent; buyer pays buyer's agent separately — Possible, but less common because it adds to the buyer's out-of-pocket costs
• Seller offers partial buyer agent compensation; buyer covers the difference — An emerging middle ground
• Buyer negotiates seller concession to cover buyer agent fee — Effectively, the seller still pays, but through a different mechanism

As a listing agent, I discuss all these options with sellers and recommend the approach most likely to produce the best net result. As a buyer's agent, I explain the compensation structure clearly before showing any properties.

What You Get for the Commission

Commission is not just a fee for unlocking doors and writing paperwork. Here is what a full-service agent provides:

For Sellers

• Pricing strategy — A comparative market analysis to determine the optimal list price
• Professional marketing — Photography, virtual tours, social media advertising, MLS listing, agent networking
• Showing management — Coordinating, scheduling, and providing feedback from all showings
• Offer negotiation — Evaluating offers, structuring counteroffers, handling multiple-offer situations
• Transaction management — Coordinating inspections, appraisals, attorney review, and closing
• Problem solving — Handling the unexpected: appraisal shortfalls, inspection issues, financing delays, title problems

For Buyers

• Market expertise — Identifying properties, neighborhoods, and opportunities that match your criteria
• Access and scheduling — Arranging showings on your timeline, often on short notice
• Offer strategy — Advising on price, contingencies, and terms to make your offer competitive
• Negotiation — Representing your interests in price negotiations, inspection response, and closing terms
• Due diligence coordination — Overseeing inspections, reviewing disclosures, flagging concerns
• Transaction support — Coordinating with your lender, attorney, and the listing agent through closing

Dual Agency in New York

Dual agency occurs when one agent (or one brokerage) represents both the buyer and the seller in the same transaction. In New York, dual agency is legal but requires written consent from both parties. I generally advise against dual agency because it creates an inherent conflict of interest — one agent cannot fully advocate for both a buyer wanting the lowest price and a seller wanting the highest price. If you are considering dual agency, understand the limitations and make sure you are comfortable with them.

Discount Brokers: Pros and Cons

Discount brokerages offer reduced commission rates — sometimes as low as 1%–2% for the listing side. Here is an honest assessment:

Potential Benefits

• Lower commission cost, obviously
• May be appropriate for straightforward transactions in hot markets where homes sell quickly

Potential Drawbacks

• Reduced or no marketing beyond MLS listing
• Limited availability — many discount agents handle high volumes and may not be responsive
• Minimal negotiation support — you may be largely on your own
• No staging guidance, repair recommendations, or strategic pricing support
• If the buyer's agent is not compensated adequately, some agents may steer their clients away from your listing

Discount brokers can work for sellers in extreme seller's markets where homes sell themselves. In more balanced conditions — or for complex transactions — the difference between a skilled full-service agent and a discount listing can easily exceed the commission savings.

My Perspective on Commission

I will be direct: I believe in earning my commission on every transaction. My clients know exactly what they are paying, why they are paying it, and what they are getting in return. I do not hide behind industry jargon or get defensive about the conversation. Commission is a business expense — like any expense, it should deliver value that justifies the cost.

If you would like a transparent conversation about commission and what working together looks like, call or text me at (518) 588-1122. I would rather answer tough questions upfront than have a client who does not fully understand the arrangement.

Questions About Commission?

Ethan Harris at Empire Real Estate Firm is happy to walk you through commission in detail — no sales pitch, just straight answers. Call or text (518) 588-1122 or email Ethan@EmpireRealEstateFirm.com.

Where Commissions Stand Heading Into Late 2026

As of June 2026, nearly two years after the NAR settlement rules took effect, the practical picture in the Capital Region has settled into a routine. Buyer representation agreements are no longer a novelty. Every buyer I work with signs one before we tour a home, and most buyers now arrive expecting that conversation. Because the agreement puts the agent's compensation in writing, the fee discussion happens earlier and more openly than it did under the old system.

Compensation is negotiated deal by deal. There is no blanket offer sitting on the MLS, so buyers and their agents confirm what, if anything, a seller is offering on each individual listing before writing an offer. It is usually a quick conversation between agents. Sellers, for their part, decide with their listing agent whether to offer buyer-agent compensation, how much, and whether to state it upfront or respond to concession requests as offers come in.

Seller-offered buyer-agent compensation is still common in this market. Most Capital Region sellers I talk with conclude that covering the buyer's side keeps their listing accessible to the widest pool of financed buyers, many of whom cannot easily add an agent fee on top of a down payment and closing costs. The difference from a few years ago is the framing: it is a deliberate choice made listing by listing, not an assumption baked into the system, and it shows up in the purchase contract rather than in an MLS field.

The practical advice has not changed much since this post was first published. Sellers should have their listing agent model the net result of a full offer, a partial offer, and a no-offer approach before the sign goes in the yard. Buyers should read their representation agreement closely, know exactly what their agent is owed, and plan how that fee gets covered before falling in love with a house. The earlier those conversations happen, the fewer surprises at the closing table.

Frequently Asked Questions

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