Home Selling in Brooklyn>Question Details

Rob Garcia, Other/Just Looking in New York, NY

What percentage of the commission does the real estate agent get when a house is sold, In New York State?

Asked by Rob Garcia, New York, NY Sat Feb 14, 2009

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You already have some really good answers here. The bottom line is: not as much as most think! In most cases, not all..it is a multiple list situation, which means two companies share the total commission and then the agents each shares with their own broker. Remember, this IS a gross amount. We all have GREAT expenses to stay in the business...our required education, licenses, board memberships, board fees, advertising fees, marketing and mailing costs, open houses, luncheons, GAS, etc, etc, etc....if we work for a franchise, we pay franchise fees, if we work in Relocation, we pay relocation referralf ees, if we work with USAA buyers, we pay referral fees and company relo fees, if it's a referral from another broker, they get a cut too, if the company generates the lead, they pay us less....when it is all said an done...we probably work for less than minimum wage!!! If you are looking to get into the business...interview many companies and negotiate the best deal you can. Consider the costs involved to just be in the busness, before you make any money at all. If you are a buyer or seller..realize, your agent is working really hard for their money....and they are paying their expenses even when they are not making sales and closing deals... If you think sellers and houses are "upside down" right now..try being an agent!
1 vote Thank Flag Link Sat Feb 14, 2009
Commissions are neither standard nor may they be legallly discussed. Each Realtor charges should be based on what they believe their services are worth.
Web Reference: http://GailGladstone.com
1 vote Thank Flag Link Sat Feb 14, 2009
Who has to pay the percentage of commission, the buyer or seller?
0 votes Thank Flag Link Wed Apr 17, 2013
Hello, commission for an agent varies. Most likely it can be anywhere from 3% to 6% sometimes even higher in a market like today where it takes longer to sell a home due to the increase in competition and the tug of war with the price between buyer and seller.

Rhonda Holt
Licensed Agent - Specializing in Co-op & Home Sales
Awarded 1st Place in Sales for 2008 and 2009
Weichert Realtors, H.P Greenfield
Web Reference: http://www.KandHhomes.com
0 votes Thank Flag Link Wed Feb 18, 2009

why are you asking this question? i'm just curious.
Web Reference: http://www.2familyhomes.com
0 votes Thank Flag Link Mon Feb 16, 2009
It ranges from 3-6% residential, usually.

Their used to be a company that charged 2% called YHD or something like that but they went out of business a few years back. The other Realtors are talking about a law that prohibits price fixing, simple put you cant cooperate with other Realtors regarding charging a set amount for listings as its not fair to the consumer.
0 votes Thank Flag Link Mon Feb 16, 2009
Antitrust laws prohibit discussing commissions between realtors. It is seen as anticompetitive. However, commissions are always negotiable. The question is: why are you concerned? If you are selling, you will find that most realtors will tell you what their commission rate would be if you ask them one on one. If you are buying, the commission is built in to the sales price. Are you looking for a career in real estate? It's hard work but fun and you can make a decent living with flexible hours. Good luck.

Ralph Windschuh
Century 21 Princeton Properties
0 votes Thank Flag Link Sun Feb 15, 2009
It is my contention that everything in life is negotiable. When a consumer lists their home with a broker, the commission is negotiated between the agent and the homeowner. When broker hires an agent, or shall we say an agent chooses a broker, again, the commission split between the two is negotiated.

New York State has nothing to do with either of these two negotiations. There is no law stating how commissions should be negotiated or split other than anti-trust laws which state that brokers as a whole cannot collude to fix commission rates. Brokers and agents can only speak of their own commission rates with consumers, what other brokers charge is their own business.

Oh, and another thing to think about, when a broker shares their listing with another broker via MLS or any other sort of co-broke, how the commission is split will either be negotiated by the two brokers or addressed within the actual listing agreement the broker and the homeowner sign.

If I can be of further assistance, please let me know.
0 votes Thank Flag Link Sat Feb 14, 2009
It sounds like you are asking what portion does the agent keep and what portion does the agents broker keep?? Each company offers different splits and some companies have a graduating split program based on production. Realtors pay their companies to hold their licenses and Realtors pay for expenses which includes marketing from their portion.

If you are asking how are the commissions are split between the listing agent and the buyers agent on a single transaction? That too varies.

It is expensive to be in real estate. Although hard work has its rewards it is often forgotten that the agent had to spend a lot of money and time to get the commission check received! I have been very blessed in real estate but I can assure you if I looked at my hourly rate... it would be depressing:) Real estate is not for everyone.
Web Reference: http://www.HomesByLorie.com
0 votes Thank Flag Link Sat Feb 14, 2009
Realtors have a vary scale on commissions based on listing agreement between seller and listing agent, approval of realtors broker. Keep in mind agent provides a certain % to their broker upon closing of the sale.

Agents are self employeed many expenses are involved there is a difference between gross commission and net
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 14, 2009
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