4 years ago

Save 6% When Selling in NYC: https://www.hauseit.com/agent-assisted-fsbo/
Seller Closing Cost Calculator for NYC: https://www.hauseit.com/closing-cost-estimator-for-seller-nyc/

What is the typical real estate commission in New York City? We will demystify this topic in this following video. In case you're not familiar with the platform, I'm Chris from Hauseit. Hauseit is the largest For Sale by Owner and Buyer Closing Credit company in New York City, established in 2014.

If you have any questions about buying and selling, and how you can save money on broker commissions and other closing costs, please check us out at https://www.hauseit.com. We do come out with new content on a regular basis, so if you like what you see, please hit subscribe, leave us a comment and we'll get back to you.

What is the typical real estate commission in New York City? Well, contrary to public belief, there is no set commission rate in New York city or nationwide. Despite what you may have heard, 5 to 6 percent of the sale price is not prevalent throughout New York city. With that said, the 5% to 6% of the purchase price and broker commission that you've commonly heard of either in TV shows or in news magazines or even in the New York Times, which recently published an article saying that the average commission rate across the United States was 5.4%.

Well, this figure you will often see in REBNY held territory in New York City. REBNY held territory is typically defined as all of Manhattan, where the Real Estate Board of New York is actually headquartered, as well as areas close to Manhattan. For example, parts of the Southern Bronx such as Riverdale, parts of Western Queens such as Long Island City.

Many parts of Brooklyn that are gentrified or known as "Brownstone Brooklyn", neighborhoods you've heard of such as Boredom Hill, Downtown Brooklyn, or Park Slope. All of these areas are traditionally considered real estate board of New York territory and in these areas you often will see 5 or 6% of the sale price as the total commission that sellers pay.

As a quick side-note on how commissions actually work, keep in mind that this 5 to 6% commission isn't typically earned by a single agent. The listing agent will secure this commission from the seller. However, this commission in 90% of cases is split between the buyer's agent and the seller's agent.

So, a 6% commission would be split 3% to the buyer's agent and 3% to the listing agent. So what about commission rates in non Real Estate Board of New York areas? Well this is why we say that commission rates are indeed not uniform and are always negotiable between the seller and the listing agent. For example, in non-REBNY areas such as Northern Bronx, which is also covered by the Hudson Gateway Association of Realtors, the HGMLS. Well, commission rates are generally lower.

One of the reasons is the HGMLS, unlike the REBNY RLS, does not have a rule on co-broking between the buyer's agent and the seller's agent. To be more technical and specific, the REBNY RLS actually stipulates that commissions must be split at least equally in favor of the buyer's agent. Meaning it does not need to exactly fifty/fifty but it needs to be at least 50% in favor of the buyer's agent. In contrast, the HGMLS, only requires a positive amount of commission to be offered to the buyer's agents. This could be one dollar conceivably.

As a result and probably because the Real Estate Board of New York is not there to enforce its co-broking mechanism, the commission rates in Northern Bronx are significantly lower on average. In a similar vein, total commission rates in Southern Brooklyn and Eastern Brooklyn are also lower than in Real Estate Board of New York territory closer to Manhattan. For example, the Brooklyn MLS covers many parts of Southern Brooklyn and Eastern Brooklyn neighborhoods, such as Bay Ridge, Dyler Heights and as a result similar to the HGMLS commission rates are lower because the Brooklyn MLS does not have a mechanism for eco co-broking.

1% Full Service in NYC: https://www.hauseit.com/agent-managed-listing/
Seller Closing Cost Calculator for NYC: https://www.hauseit.com/closing-cost-estimator-for-seller-nyc/
.
.
Hauseit LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
_
#hauseit #hauseitnyc