How Much Do Real Estate Agents Make in New York?

Want to make six figures while touring stunning homes and meeting interesting people? A career in New York real estate might be a good fit for you!

The average New York real estate agent makes around $112,000 a year, but there are a lot of variables to consider. Learn more about how real estate agents are paid and what you stand to make in this career.

How Real Estate Agents Are Paid in New York

Unlike traditional jobs, where employees earn hourly wages or annual salaries, real estate agents are typically paid only when they close a deal. The pay is usually a percentage of the sales price of the property, which is negotiated between the agent and their clients upfront.

This pay structure means your earnings in real estate are unlimited! You can earn more by:

• Closing more deals

• Working with higher-value properties (perhaps becoming a luxury real estate agent)

• Negotiating a higher commission percentage with your clients

Average Real Estate Agent Income in New York

According to the most recent data from the Bureau of Labor Statistics (BLS), the mean wage for real estate agents in New York is $112,080 per year (as of May 2023). That works out to $53.89 per hour.

Average Income for Real Estate Agents in NYC

You might be surprised to learn that agents in New York City don’t necessarily make more than the average agent in New York State. Indeed.com estimates the average NYC real estate agent makes $106,012 per year. And BLS data reports that the mean annual wage for agents in the New York/Newark/Jersey City metro area is $111,750.

How can the average agent’s pay can be less in NYC when property values there are so high? First, there may be more agents competing for less business in metro areas, meaning that each agent closes fewer deals. Additionally, it’s common for agents to accept a lower commission in high-value markets because it doesn’t take that much more work to sell a high-value property in a high-value market than a mid-range property in a mid-range market.

Average Commission Rate for Real Estate Agents in New York

A recent poll found that the average commission percentage in New York is 5.3%. Listing agents typically earn 2.85%, and buyer’s agents typically earn 2.45%.

With luxury properties (homes over $10 million), that percentage will probably be lower, but the overall commission amount will be higher because the sale price is so high.

Commission Structure Changes from the 2024 NAR Settlement

Before August 2024, home sellers paid the full 5-6% commission to the listing agent, who then split the commission (usually 50/50) with the buyer’s agent.

Then, a handful of sellers sued the National Association of REALTORS (NAR), claiming it was unfair to expect sellers to pay for the buyer’s agent.

The NAR settled the suit and agreed to change the commission rules. Now, buyers are responsible for negotiating and paying their agent’s fees. We're still seeing how this is affecting the market, but many people think it will cause average commission rates to go down.

Interestingly, many sellers now offer a cash concession to the buyers to help them cover their agent’s fees. Offering this money to the buyers increases buyer interest in the listing by reducing the upfront expenses.

Factors That Could Reduce Your Income

Splitting the Commission with Your Broker

When you first get your New York real estate license, your work will be supervised by a licensed broker. Many New York brokers provide training, office space, and admin support for their agents.

In exchange for these services, brokers take a split of your commission. For new agents, brokers might take as much as 50% because they have to invest a lot of time and resources in you. Experienced agents and high producers might give brokers just 20% of their commission.

Don’t Forget About Income Taxes!

Remember, most agents are not employees, they’re independent contractors. That means your brokerage isn’t responsible for taking taxes out of your paycheck. It’s up to you to set aside money to pay your quarterly estimated taxes.

A good rule of thumb is to save 30% of every check for taxes.

New York Real Estate Commission Example

Let’s say you represent the sellers of a home with a $750,000 sales price. The seller agreed to pay you a 2.85% commission, giving you $21,375 when the deal closes.

You have a 70/30 split with your broker, so you pay them $6,412.50, and you keep $14,962.50. $14,962.50 is your gross (pre-tax) income from this one transaction.

Then you save 30% for taxes, leaving you with a net of $10,473.75 from the deal.

If you sell just eight homes per year at this rate, you’d earn a gross income of $119,700 and a net income of $83,790!

Start Earning Money as a New York Real Estate Agent

Excited to start making those commissions? All it takes is a New York real estate license and a drive to succeed.

Enrolling in a NY state-approved real estate course is the first step toward getting your license. Enroll today and take one giant step toward making money as a New York real estate agent!