NYC Real Estate Commission Calculator

The typical real estate commission in NYC is 5% to 6% of the sale price.  One of the main reasons why commissions remain elevated in NYC is because the vast majority of buyers work with buyer agents. The typical 5% to 6% commission paid by the seller is intended to be split equally between the listing agent and the buyer’s agent. Sellers are averse to offering less than 2.5% to 3% to a buyer’s agent because it may have an impact on how much demand the listing sees from represented buyers (who account for over 75% of the buyer base).

Sellers in NYC typically sign an exclusive listing agreement which stipulates a fixed commission rate to be paid at closing. If a buyer is unrepresented, the total commission is simply pocketed by the listing agent instead of being split with a buyer’s agent. Buyers are therefore incentivized to work with buyer agents because it’s perceived to be a free service since sellers are paying a fixed total commission no matter what. This creates a chicken and egg situation whereby sellers feel compelled to offer high commissions to buyer agents while buyers feel compelled to work with buyer brokers since it doesn’t cost them anything.

Aside from broker commissions, sellers in NYC are responsible for additional closing costs including NYC and NYS Transfer Taxes, seller’s attorney fees, and building fees in the case of a condo or co-op apartment. Combined NYC and NYS Transfer Taxes are often the second-largest expense after broker commissions, totaling 1.825% to over 2% of the sale price depending on thresholds. Seller’s attorney fees range from $3,000 to $4,000 for a standard transaction. Building-specific fees can include a move-out fee, managing agent fee and a flip tax.

The NYC Transfer Tax is a seller closing cost of 1% for sales below $500k and 1.425% for sales of $500k or more. Higher rates apply for commercial transactions and multifamily properties with 4 or more units. In addition to the NYC Transfer Tax, sellers in NYC must also pay New York State Transfer Taxes. The combined NYC and NYS Transfer Taxes are the second largest closing cost for sellers aside from broker commissions.

The New York State Transfer Tax is 0.4% for sales below $3 million and 0.65% for sales of $3 million or more. The higher rate of 0.65% kicks-in at a lower threshold of $2 million for commercial transactions and residential properties with 4 or more units. Prior to the New York Tax Law amendments in 2019, the NYS Transfer Tax was previously a fixed 0.4% regardless of the sale price. The New York State Transfer Tax is authorized by New York Consolidated Laws, Tax Law – TAX § 1402.

The average real estate attorney fee for a sale transaction in NYC ranges from $3,000 to $4,000. These fees are typically structured as a flat rate, though the exact amount will depend on the complexity of your transaction. For more complex transactions or new developments, fees can reach as high as $5,000. Real estate attorney fees are usually paid at closing and included in the closing costs outlined in your lawyer’s closing statement. However, some attorneys may require half or a portion of the fee upfront, with the balance due at closing.

Condo and co-op buildings in NYC typically charge a seller move-out fee, a managing agent closing fee, and possibly a flip tax. Fees vary by building. The move-out fee is typically collected upon the submission of the buyer’s board package. The managing agent fee, if applicable, might be payable upon closing, or it could be collected when the board package is submitted. The flip tax is typically collected at closing. Procedures vary by building.

Additional fees for co-ops may include a co-op transfer tax filing fee, a co-op stock transfer tax, and a UCC-3 Termination Fee if there is an existing mortgage.

Most banks charge sellers a bank loan satisfaction fee which is payable at the time you pay off your outstanding principal balance. This is a relatively small closing cost, and it’s usually a fixed amount regardless of the size of the outstanding principal balance you’re paying off.