Home Buying in New York>Question Details

Yeprem P. Da…, Other/Just Looking in Encino, TX

From Los Angeles with Care: What is the average commission in the state of New York for Brokers/Realtors?

Asked by Yeprem P. Davoodian, M.A., Encino, TX Thu Jan 10, 2013

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Christine Gordon’s answer
Yeprem,

I concur with Anna & suggest you delete your question as well as those others who have offered specific replies. This is a recipe for price-fixing going on here & not only is it illegal but it's also bad for business :-(

Looking forward,

Christine Gordon
Licensed Real Estate Salesperson
Cell: 917.881.2924
Fax: 347.328.9352
Apartment updates available at http://www.christinegordon.postlets.com
"Home is where the heart is."
5 votes Thank Flag Link Fri Jan 11, 2013
Careful. I hope you are you also an attorney because it sounds as if you are giving a legal opinion (in which case--- yikes). If you're not, it would behoove you to not just take what was regurgitated to you in a licensing course as gospel. Read up on the Act as well as cases involving interpretations of the Act--- and then carefully reread the OP's question as well as others' responses. Do you come across one even on case where a licensed broker or agent is successfully charged with violating Sherman/Clayton for asking about average commissions in a particular geographic area? Or another agent for sharing their historical experiences? I doubt it. Why? Because there is a HUGE difference between one agent saying to another "I have usually received X percent of commission on a deal" and two agents having a discussion wherein it is proffered "I'm thinking of charging X percent" or agreed "we are only going to charge X percent".
Flag Thu Jan 17, 2013
Bravo to you and thumbs up - it's amazing and upsetting as to how ignorant many agents are on this topic!
Flag Fri Jan 11, 2013
Not sure why such a question, nor why the replies below; as an agent/broker you really should be aware that commission discussions outside your broker owner's confines are a no-no; be aware that it is a Federal offense under the Sherman/Clayton Antitrust Act; hefty penalties do apply. Commissions are always negotiable between the seller and his/her broker, no matter the location.....you may wish to remove the question....
4 votes Thank Flag Link Fri Jan 11, 2013
Umm, the Sherman/Clayton Antitrust Act is wholly inapplicable here. What are you smoking?
Flag Thu Jan 17, 2013
The Ladies got it right. The guys, not so much. As the lady said, and I paraphrase, "commissions are negotiable no matter what the state..." Now, I won't assume for other states but in NY the is no set limit of compensation either.

Of course after all is said and done, it still falls on the shoulders of all agents/brokers to be able to justify any commission to a prospective client (if need be) during the listing presentation and that is where the rubber meets the road.
1 vote Thank Flag Link Mon Jan 14, 2013
You need to read up on the federal anti trust laws - quickly!

You also need to speak to your Broker so he or she can educate you as to why this kind of question is inappropriate..

Any agents who took the time to answer this question with specifci numers need to review the laws, too.

The only proper and legal response to a question on commissions is......"ALL commissions are negotiable. Speak to a local agent to discuss what they might charge."

The Dept. of Justice doesn't take kindly to any hint of price fixing!
1 vote Thank Flag Link Fri Jan 11, 2013
thanks Christine - too many agents seem to be clueless as to the anti trust laws......and when it's brought up - they still refuse to pay attention! Oh well, what can you do!
Flag Sat Jan 12, 2013
Thumbs up to you Debbie... I see one agent deleted her reply, hopefully the others will follow suit & have learned a valuable lesson.
Flag Sat Jan 12, 2013
Jaymes - pssst.... "everyone" (I guess except you) knew he was asking about buying because - look up at the top of the page - it says "Home BUYING in New York", not "renting" which is an option!




And.you might want to read up on the anti trust laws in regard to discussing commissions, average or otherwise.

Glad you love us all...
0 votes Thank Flag Link Sat Jan 19, 2013
Well gosh darn! Thank you Debra for pointing out that "Home Buying in New York" Well you are probably correct in assertion, though certain words tend to be used differently in NY, yet perhaps my mistake. Thanks for the tip regarding the anti-trust laws, but I quite well versed in them. Thanks for the love! :-)
Flag Sun Jan 20, 2013
Commission are negotiable, 10% sounds like a good fee for both Brokers and Realtors.

Josh Barnett, Realtor
Metro First Realty
Web Reference: http://www.GetSoldOKC.com
0 votes Thank Flag Link Sat Jan 19, 2013
10% "sounds" like a good fee! Josh, I'm sorry to interrupt as you answer questions directed specifically to the New York market; but I am curious as to whether or not there are inquires that are more local you might want to respond to? Just saying!
Flag Sat Jan 19, 2013
Hi Yeprem,

Some of these responses slay me...but I love you all! Actually Yeprem - I think it's a very good, reasonable and fair question to ask. Afterall, you did say "average". But once again, how everyone knew automatically that you were speaking of purchasing or selling and not renting - is beyond me! So, so, so intuit!

But once again- just for grins - say you are asking about renting (because in NY, NY - you pretty much need an agent to assist in even renting an apartment). Most often you will find that fee to be 15% of the annual rent. Although, along with that fee being negotiable as well, there are several scenarios in which that fee is lessened without even any negotiation.

In the case that you are buying or selling a home, the average commission is most often either 6% or 7%. And again, as always - that fee is negotiable (but always up to the closing table- uhmmm, not so much!)

If you would like more explanation or clarity, please don't hesitate to reach out.

All the Best,
Jaymes
0 votes Thank Flag Link Sat Jan 19, 2013
Hello Yeprem it all depends on the agent and client its whatever they agree on. Everything anywhere is allways negotiable.
0 votes Thank Flag Link Sat Jan 19, 2013
Yes, this is all true but the commission is negotiable all the way up to the closing table.
0 votes Thank Flag Link Wed Jan 16, 2013
Its technically negotatible but mostly 6% is the standard.. Some higher priced stuff can be 5% ..Some have contracts setup where if you are selling and buying broker than its 4% or 5%.

Its pretty much a fixed price market..especially in manhattan.

i'm not a broker so no issue for me to say heh heh ;)
0 votes Thank Flag Link Wed Jan 16, 2013
It would depend if it is residential or commercial. Please give me a
call and I will try to answer all you questions.
Fajardo Delacruz
Licensed Real Estate Agent
Century Homes Realty Group llc
347-932-0609
0 votes Thank Flag Link Fri Jan 11, 2013
Maximum of 6% on a sale with a 50/50 co broke. Some agents collect 4% if not co broking.
0 votes Thank Flag Link Thu Jan 10, 2013
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