Who pays the real estate commission in New York?
Usually the seller, out of the sale money at closing. Since August 17, 2024, a buyer also signs a written agreement with their own agent that sets what that agent is paid, and the seller may agree to cover it. Every commission is negotiable.
The short version
The seller's agent is paid under the listing agreement the seller signs. The money comes out of the seller's proceeds on the day the sale closes, so the seller writes no check.
The buyer's agent is paid under the buyer agreement the buyer signs before touring homes. The buyer and the agent set the amount in writing. The seller can offer to pay some or all of it, and the buyer can ask for that in the offer. A buyer's agent cannot take more than the agreement says, whoever pays.
Nothing is fixed. No law, board or MLS sets a rate. You negotiate it with the agent before you sign, and the number goes in the agreement.
What changed in August 2024
The National Association of REALTORS® settlement changed two things on August 17, 2024. Offers to pay the buyer's agent came off the MLS, the shared listing database agents use; a seller can still make that offer, just not there. And an agent working with a buyer needs a written agreement before the buyer tours a home.
So a buyer now sees the agent's pay in writing at the start, and a seller decides on purpose whether to help with the buyer's side.
Does a higher price mean a higher commission?
Yes, when it is a percentage. Each 1 percent is $5,000 on a $500,000 sale and $9,000 on a $900,000 sale. Some agents charge a flat fee instead; ask which one you are being quoted.
To see what you keep after commission, the transfer tax, the attorney and your mortgage payoff, run the seller net sheet. A buyer can price the cash to close on the closing cost calculator.
Why the seller usually pays
The commission comes out of money the seller is already receiving at the closing table. A buyer is already bringing the down payment and closing costs, so adding the agent's pay on top can stretch them. When the seller covers it, both sides can see that cost inside the price.
When the seller does not cover it, the buyer pays their agent at closing under their agreement. Ask your lender how that changes the cash you need.
Three questions to ask before you sign
What is the fee, in dollars, at my price? A percentage is easy to misread; the dollar figure is not.
When is it owed? Usually only when the sale closes. Read the agreement for what happens if you cancel or sell to someone you found yourself.
What do I get for it? Pricing, photos, launch, negotiation, the weeks under contract. Ask for the list in writing.
Sources: National Association of REALTORS®, What the NAR Settlement Means for Home Buyers and Sellers, and NAR settlement FAQs, read November 10, 2026. This page explains how commission works; it is not legal advice. Your listing or buyer agreement is the binding document, and your attorney can review it before you sign.