In the state of Maryland, understanding real estate commissions is crucial when buying or selling a home. Recent changes in 2024 have brought greater transparency to how these commissions are presented, benefiting both buyers and sellers. These updates aim to make the process more transparent, empowering individuals to make informed decisions regarding real estate fees.
Whether you’re a first-time buyer or a seasoned seller, this guide from Redfin will provide insight into Maryland’s real estate commissions and what to expect in today’s market.
Current state of the Maryland housing market
Before diving into real estate commissions in Maryland, let’s take a look at the state’s housing market:
| Median Home Sale Price | $436,100 |
| Housing Supply | 17,866 (+10% YoY) |
| Homes Sold Above List Price | 41.9% (-3.8 pts YoY) |
Understanding real estate commissions in Maryland
What are real estate commissions?
Real estate commissions are fees paid to agents by homebuyers or sellers for their assistance in completing a property transaction. These fees are typically a percentage of the home’s sale price and are paid at closing.
Who pays the commission?
Traditionally, sellers covered both their own agent’s commission and the buyer’s agent’s fees. However, as of August 17, 2024, buyers must agree to their agent’s fee in writing before touring homes. While buyers can negotiate for the seller to cover their agent’s commission, the amount is now variable and negotiable.
Average real estate commission rates in Maryland
Commission rates in Maryland can vary based on the specifics of the deal and agreements between parties. While there are common expectations for commission percentages, these fees are negotiable to accommodate different budgets and goals. Factors like location, market trends, and agent services can influence the final commission rate.
Redfin offers competitive listing fees for sellers and varying fees for buyers, tailored to each location to enhance the chances of securing a desired home.
Can you negotiate real estate commissions in Maryland?
Absolutely! Agents are open to negotiating commission rates based on the transaction type, service level, and client-agent relationship. Factors like property desirability and dual agency can offer opportunities for negotiation.
Tips for a successful negotiation
- Shop around: Compare different agents and their commission offers.
- Consider performance-based agreements: Negotiate higher commissions for quicker sales or better offers.
- Leverage your property’s appeal: Agents may reduce fees for highly desirable properties.
Maryland real estate commission FAQs
What are the changes to real estate commission? There are two significant updates: buyers must agree to their agent’s commission before home tours, and agent compensation is no longer displayed on MLS listings in many markets.
How do the changes impact buyers in Maryland? Buyers must sign an agreement outlining their agent’s commission rate before touring homes, while still having the option to request seller coverage.
How do the changes impact sellers in Maryland? Sellers negotiate compensation with their listing agent and can adjust commission requests during the offer process.
How do you find a real estate agent in Maryland? Connect with a Redfin agent for expert guidance on your buying or selling journey.
How can you avoid fees? Sell your home without an agent in Maryland to save on commissions, though be prepared for added responsibilities. FSBO transactions involve more hands-on work but eliminate agent fees.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee not included. Sell for a 1% listing fee with Redfin if you also buy with us within 365 days of closing on your listing. Learn more here.