The average real estate transaction in New York City is relatively large and can amount to millions of dollars. Collecting 1% of the total purchase price as commission is a reasonable fee on these transactions.
At the same time, the difference of the broker commission split after collecting our 1% can be given back to the buyer in the form of a home buyer’s rebate. It is also amounts to significant savings for the seller if the listing broker’s commission is as low as 1%.
Interestingly enough, in Britain, a typical commission on a real estate transaction is 1-2%.