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uying a home in Minnesota can be expensive, with costs ranging from the initial down payment to closing fees. However, negotiating lower commissions could make mortgage payments more affordable. Nationally, Americans pay around $100 billion in real estate commissions annually, and agents in the US have some of the highest standard commissions globally.

    Before a recent court case, full-service agents in Minnesota typically charged sellers 5% to 6% commission, split among various agents and brokerages involved in the deal. The National Association of Realtors (NAR) settlement earlier this year has led to increased negotiation opportunities for buyers and sellers.

    To negotiate effectively, it's essential to do your research and ask questions about fees. A LendingTree survey found that 64% of those who asked successfully reduced commission fees, while only 31% attempted to negotiate initially. Buyers and sellers can also consider negotiating services or doing a DIY sale to reduce costs.

    For example, if a seller finds someone to perform staging for a lower cost than the agent, this change can be spelled out in the contract. However, beware that negotiating down commissions may come at the price of having less attention from an agent.

    Doing the math is crucial when considering commission rates. A standard 5% commission on a $350,000 house would generate around $17,500 in agent fees, while scaling it down to 3% would result in $10,500 in agent fees, saving buyers $120 per month on their mortgage payments over 30 years.

    Ultimately, buyers and sellers should weigh the cost of services against commission rates. For sellers, doing a DIY sale can be an option, but they must ensure they can handle all aspects of marketing, showing, and maintaining relationships with buyers' agents. An agent provides valuable expertise and helps with paperwork, making them a worthwhile investment for many homebuyers.