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real estate agent can be a valuable partner during the homebuying or selling process, helping navigate challenges and optimize transactions for financial goals. However, their services come at a cost – a commission fee that varies based on the transaction's value.

    In Illinois, the average total commission is 5.07%, with the buyer's agent earning around 2.43% and the seller's (listing) agent earning about 2.64%. For a median-priced home of $285,000, this translates to an average commission of $14,450. Commission fees can vary significantly depending on location within the state.

    A real estate agent's commission covers a range of services, including expert guidance through the local market, paperwork review, and marketing efforts for sellers or negotiation skills for buyers. The split between buyer's and seller's agents is typically not equal, with the listing agent often earning more.

    Historically, buyers covered both agents' fees, but recent changes may shift this responsibility to homebuyers directly. It's essential to clarify which party will pay for each commission in your contract.

    While real estate agents can provide valuable expertise, it's possible to buy or sell a house without one, potentially saving thousands in commissions. However, this approach requires significant time and effort from the seller or buyer, and mistakes can be costly.

    To minimize fees, consider negotiating with your agent, using a discount broker, selling as an owner, or working with cash-homebuying companies. When selecting an agent, look for someone with experience in your area and ask for references from past clients to ensure you find the right fit.

    Sources: Clever, Illinois Realtors