U
nderstanding real estate commissions is crucial for both buyers and sellers in Idaho as it directly impacts their budgeting and negotiations. In 2024, new changes were introduced across the U.S., making real estate commissions more transparent to help buyers and sellers make better-informed decisions.
Current State of the Idaho Housing Market
Before diving into real estate commissions, let's take a look at the current housing market trends in Idaho. The median home sale price stands at $481,800, with a housing supply of 10,390 (+0.3% YoY). Homes sold above their list price account for 12.2% (-3.5 pts YoY) of the total sales.
Deciding between renting or buying your next home? Compare the costs of renting vs buying and find a lender to secure your mortgage.
Understanding Real Estate Commissions in Idaho
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 settled at closing.
Who pays the commission? Historically, sellers would cover both their agent’s and the buyer’s agent’s commissions from the sale proceeds. However, starting on August 17, 2024, buyers are required to agree to their agent’s commission in writing before they begin touring homes. Buyers can still negotiate for the seller to cover their agent’s fees as part of the offer, but this change means the amount a seller might pay is now more flexible and negotiable.
Average Real Estate Commission Rates in Idaho
Real estate commission rates in Idaho vary based on the specifics of each transaction and the agreements made between parties. These rates are negotiable, allowing buyers and sellers to work with their agents to find the best arrangement. Factors like location, market conditions, and the agent’s services can impact the commission amount.
In Idaho's largest cities like Boise, Meridian, and Nampa, estimated commission rates based on median home prices are as follows:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Boise
$490,000
$7,350
$14,700
$24,500
Meridian
$527,450
$7,912
$15,824
$26,373
Nampa
$405,900
$6,089
$12,177
$20,295
At Redfin, we focus on providing the best value for our customers. For sellers, we offer listing fees starting as low as 1%. For buyers, our fees vary by location but are designed to be competitive, helping your offer stand out and improve your chances of securing a home.
Can you negotiate real estate commissions in Idaho? Yes, you can! There are no laws in the U.S. that set commission rates, which means agents are often open to negotiation. The final rate may depend on the nature of the transaction, the services provided, and the relationship with the agent.
Tips for a successful negotiation include comparing multiple agents and their commission rates before making a decision, discussing performance incentives like a higher commission if the home sells faster or at a better price, and using your property’s desirability as leverage—agents may accept lower commissions if they expect a quick sale.
Idaho Real Estate Commission FAQs
What are the changes to real estate commission? Two significant updates have impacted real estate commissions. First, buyers now need to agree to their agent’s fees in writing before touring homes. Second, in many markets, agent compensation is no longer displayed on MLS listings. Learn more about the real estate commission changes here.
How do the changes impact buyers in Idaho? Buyers must now sign an agreement with their agent about their commission rate before home tours begin. However, you can still negotiate for the seller to cover your agent’s fee as part of your offer.
How do the changes impact sellers in Idaho? Sellers will continue to negotiate with their listing agent on the compensation offered to the buyer’s agent, if any. The terms can be reviewed and adjusted based on the buyer’s offer.
How do you find a real estate agent in Idaho? If you’re ready to buy or sell a home, Redfin can help. Get in touch with a Redfin agent to start your real estate journey.
How can you avoid fees? Selling a home without an agent, known as a For Sale by Owner (FSBO) transaction, can save on commission costs. However, FSBO sales require more effort from the seller, such as handling marketing, showings, and legal paperwork on their own.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover 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.
