Realtors in Michigan are being paid the highest average commission rate in the nation at 6.03 percent, eclipsing the national average of 5.44 percent, according to new report from Clever Real Estate, a St. Louis-based real estate company.
Other states’ real estate agents collecting large commissions are Ohio (5.87 percent), Missouri (5.77 percent), Minnesota (5.75 percent), and Colorado (5.74 percent).
States on the low end of the commission spectrum include New Jersey (4.92 percent), Maryland (5.13 percent), Illinois (5.18 percent), California (5.18 percent), and Alaska (5.22 percent)
“If you sell a home in Michigan that costs $190,000, you’d typically pay around $11,457 in realtor fees; $23,517 for a $390,000 home; and $38,592 for a $640,000 home,” explains Jon Stubbs or Clever Real Estate. “Realtor commission is usually the largest cost you’ll face when selling your home — but you don’t have to pay the full 6.03 percent. You can use a low commission real estate broker to save on listing fees.”
The report comes one year after the National Association of Realtors (NAR) settlement on broker commission practices. Although sellers are no longer required to pay the buyer’s agent fee as part of the NAR lawsuit changes, many sellers’ agents still recommend offering it as a concession.
“Paying a buyer’s agent commission can make or break your home’s appeal,” says Rick Guerrero of Dalmatian Real Estate in Holland, southwest of Grand Rapids. “It’s not required, but offering 2.5 percent to 3 percent is standard and gets agents eager to show your place. Skip it, and you might shrink your buyer pool, especially in a busy market. A solid commission keeps pros motivated to bring serious offers.”
To read the full report, visit here.
