If you’re in the market to buy or sell a home in Maine, understanding real estate commissions is essential for making informed financial decisions and navigating negotiations effectively. Recent updates in 2024 have brought new regulations that aim to improve transparency in how these commissions are communicated across the country.
Whether you’re a first-time homebuyer or a seasoned seller, this comprehensive guide from Redfin will provide you with insights into Maine’s real estate commissions and what to expect in today’s market.
Current State of the Maine Housing Market
Before delving into real estate commissions in Maine, let’s examine the current state of the housing market in Maine:
| Median Home Sale Price | $414,700 |
| Housing Supply | 7,312 (+34.1% YoY) |
| Homes Sold Above List Price | 35.7% (-10.5 pts YoY) |
Understanding Real Estate Commissions in Maine
What are Real Estate Commissions?
Real estate commissions involve fees paid to agents for their role in facilitating property transactions for homebuyers or sellers. Typically calculated as a percentage of the sale price, these fees are settled at the closing of the sale.
Who Pays the Commission?
Traditionally, sellers have covered the costs of both their agent’s and the buyer’s agent’s commissions from the sale proceeds. However, as of August 17, 2024, buyers are now required to agree in writing to their agent’s commission rate before commencing home tours.
While buyers can still negotiate for the seller to cover their agent’s commission as part of the offer, this new rule offers more flexibility. The amount a seller may pay for the buyer’s agent is negotiable and can vary based on the deal.
Average Real Estate Commission Rates in Maine
Commission rates in Maine can vary widely based on various factors, including transaction specifics and party agreements. While standard rates exist, these fees are negotiable.
Factors such as the property’s location, current market conditions, and the services provided by the agent influence the final commission rate. Here’s a breakdown of example commission rates based on median home prices in major Maine cities:
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Portland | $596,000 | $8,940 | $17,880 | $29,800 |
| Lewiston | $318,000 | $4,770 | $9,540 | $15,900 |
| Bangor | $270,000 | $4,050 | $8,100 | $13,500 |
At Redfin, our aim is to provide exceptional value for our clients. For sellers, we offer competitive listing fees starting at just 1%.* For buyers, our fees are tailored to maximize the appeal of your offer and enhance your chances of closing on a home.
Negotiating Real Estate Commissions in Maine
Certainly! Since there are no federal regulations on commission rates, agents are typically willing to negotiate their fees based on the specifics of the transaction, the services required, and the agent-client relationship.
When negotiating, consider the following:
- The level of service provided by the agent
- Their marketing approach
- Their knowledge of the local market
Sellers may have more leverage if their property is in high demand or expected to sell quickly. Additionally, in cases of dual agency where the same agent represents both parties, there may be opportunities to reduce commission fees further.
Tips for Successful Negotiation
- Compare various agents and their commission structures before making a decision.
- Consider performance-based incentives, such as a higher commission for achieving a quick sale or a better final price.
- Highlight your property’s desirable location to potentially persuade agents to accept a lower commission.
Maine Real Estate Commission FAQs
What are the changes to real estate commission? Recent updates have revamped how commissions are handled: Buyers now need to confirm their agent’s fees in writing before home tours, and buyer agent compensation is no longer disclosed on MLS in many markets. Learn more about the real estate commission changes here.
How do the changes impact buyers in Maine? Buyers are now required to sign an agreement with their agent specifying the commission rate before starting home tours. However, you can still request the seller to cover your agent’s fee as part of your offer.
How do the changes impact sellers in Maine? Sellers will continue to negotiate with their listing agent regarding the compensation offered to the buyer’s agent, if any. Any adjustments or requests regarding these terms will be addressed during the negotiation phase.
How do you find a real estate agent in Maine? If you’re looking to buy or sell a home in Maine, Redfin is ready to assist. Contact a Redfin agent to kick off the process.
How can you avoid fees? Selling your home independently (For Sale By Owner, or FSBO) can eliminate commission fees, but it requires significant effort, including managing marketing, showings, and paperwork independently.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee covered by the seller is not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.