How NYC real estate commissions work in 2026
April 22, 2026 · 8 min read
The short answer: residential commissions in NYC still cluster at 6% total, split 3% to the listing side and 3% to the buyer's side, paid by the seller at closing. The longer answer is that the 2024 NAR settlement changed how that 3% co-broke gets disclosed and advertised, and in 2026 sellers have meaningfully more leverage to negotiate. Here's how it actually works on the ground.
The standard structure
| Role | Typical cut | Paid by |
|---|---|---|
| Seller's listing agent | 3% (half of total) | Seller at closing |
| Buyer's agent (co-broke) | 3% (half of total) | Seller at closing (traditionally) |
| Listing firm's split of its agent's 3% | 30–50% of the 3% | Flows through brokerage |
| Buyer's firm split of its agent's 3% | 30–50% of the 3% | Flows through brokerage |
On a $2M sale, the seller writes a $120,000 check at closing — $60,000 to the listing side, $60,000 to the buyer's side. After firm splits, each individual agent takes home $30,000–$42,000 of their $60,000.
What the NAR settlement changed
In 2024, the National Association of Realtors settled a class action that forced several concrete changes, all live by mid-2024 and fully shaken out by 2026:
- Buyer-broker agreements are now mandatory. A buyer must sign a written agreement with their agent before that agent shows them a property. The agreement spells out the buyer-side fee.
- MLS no longer advertises co-broke commissions. In NYC, REBNY RLS removed the advertised co-broke field. The fee is still almost always paid — it just isn't broadcast on the listing.
- Who pays the buyer-broker fee is more flexible. The seller can still offer a co-broke; the buyer can agree to pay their own agent directly; or the parties can negotiate any split at contract.
What actually happens in NYC practice
Despite the settlement, the market in 2026 looks mostly like the pre-2024 market. Sellers still offer 2.5–3% to the buyer side in roughly 85% of NYC residential transactions. Three reasons:
- Buyer's agents will not show a property that isn't paying a co-broke. A seller who refuses to offer one dramatically shrinks the buyer pool.
- NYC buyers typically cannot roll a broker fee into their mortgage, so asking them to pay 2.5% out of pocket on top of the down payment is a deal-killer for most.
- Listing agents still advise clients to offer a co-broke because it meaningfully raises the final sale price.
Where negotiation actually happens
| Scenario | Common negotiated commission |
|---|---|
| Standard $1M–$3M condo/co-op sale | 5–6% (3/3 or 2.5/2.5) |
| Off-market or FSBO-adjacent deal | 3–4% total, buyer-side only |
| Luxury townhouse $10M+ | 4–5% total (tighter margins in percentage terms) |
| New-development sponsor sale | Sponsor pays 3% co-broke, no listing-side fee |
| Insider/repeat client deal | 3–4% negotiated flat |
| Dual agency with one agent | 4–5% total, sometimes 3.5% |
Luxury compresses on percentage because the absolute dollar amount is already high. A 4% commission on a $15M sale is $600,000 — you don't need 6% to motivate the agents.
Rentals are a different structure
NYC rentals historically used the broker fee of one month's rent to 15% of annual rent, paid by the tenant. The 2025 FARE Act flipped that: the fee is now the responsibility of whichever party actually hired the broker. In most cases that's the landlord, which has shifted the commission to landlord-paid. Agents focused on rentals have adjusted pricing: the broker still gets paid, but listings now advertise “no broker fee” because the landlord is covering it.
What it means for sponsors and sellers
Three practical takeaways for 2026:
- Sellers can negotiate more openly than before. A 5% total commission is now a reasonable ask in most market segments. Below that, expect reduced agent effort.
- Sponsors still set co-broke aggressively. 3% is standard for new-development launches; 3.5%+ for slower buildings. See the new-development marketing playbook for how this shapes launches.
- Buyer agreements are non-negotiable. Any buyer working with an agent must have a signed agreement. The fee amount is separately negotiable, but the paper is not.
Who has the most commission leverage
Luxury producers at Elliman, Sotheby's, and the townhouse boutiques negotiate the most. They have the inventory and the buyer network to command standard 3% co-broke even in a softer market. See top NYC luxury agents for who actually commands the $5M+ segment.
The BrokerList.ai dataset tags agents by closed-deal price band — helpful when your product is priced for high-commission producers specifically. See /data for the full field list.
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