What is the Real Estate Commission in New York City?

Real estate transactions can be complicated and intimidating, especially in a large, fast-paced city like New York. If you are planning to buy or sell real estate in the Big Apple, you may be wondering about real estate fees. What is it? How does it work? And how much will you pay?

What is the real estate commission?

Simply put, a real estate commission is a fee paid to a broker or agent who helps you buy or sell real estate. Commissions are usually a percentage of the total selling price and are split between the Buyer's Agent and the Seller's Agent.

In New York City, the standard commission rate is 6% of the sale price. This means that if you sell your property for $1 million, you will pay a total commission of $60,000. The buyer's agent and seller's agent will each receive $30,000, or 3% of the sale price.

However, the commission rate is not always fixed. Some agents may be willing to negotiate a lower rate, especially if you are selling a high end property or if you use the same agent to both buy and sell your property. 

Who pays the commission? 

The commission is typically paid by the seller and It's worth noting that the commission is only paid if the sale goes through. If the deal falls through for any reason, the seller will not be required to pay the commission.

Conclusion

In summary, New York City real estate fees are typically 6% of the sale price, split between the buyer's agent and the seller's agent. However, the commission rate is not fixed and can vary depending on a variety factors. If you are planning to buy or sell real estate in New York City, it is important to understand how commissions work and work with a reputable and experienced real estate agent. 

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