W
hether buying or selling in Illinois' real estate market, understanding how commissions work is crucial. In 2024, changes aimed to improve clarity and communication regarding commission structures, giving buyers and sellers more control over associated costs.

    Before diving into the specifics of real estate commissions, it's essential to grasp the current state of Illinois' housing market:

    * Median Home Sale Price: $301,100

    * Housing Supply: 45,070 (-1.1% YoY)

    * Homes Sold Above List Price: 39.4% (-3.4 pts YoY)

    Real estate commissions are payments made to agents for assisting in buying or selling homes. These fees are usually calculated as a percentage of the final sale price and settled during closing. Traditionally, sellers paid both their agent's commission and the buyer's agent fee, but as of August 17, 2024, buyers must sign an agreement outlining their agent's commission before touring homes.

    Commission rates in Illinois vary depending on factors like location, market conditions, and service level. For example:

    * Chicago: $364,000 (1.5% = $8,700, 3% = $17,400, 5% = $29,000)

    * Aurora: $315,000 (1.5% = $24,375, 3% = $48,750, 5% = $81,250)

    * Joliet: $293,000 (1.5% = $11,625, 3% = $23,250, 5% = $38,750)

    Redfin offers competitive rates, with listing fees starting at 1%. Buyer fees can differ based on location, but Redfin aims to keep its rates competitive.

    Real estate commissions are fully negotiable. Agents may adjust their rates depending on the specifics of the deal, services provided, and property appeal. When negotiating, consider factors like agent experience, marketing strategies, and local market conditions.

    Two major changes took effect in 2024:

    * Buyers must sign an agreement outlining their agent's fee before touring homes.

    * Buyer agent fees are no longer displayed in MLS listings in many markets.

    These changes impact buyers by requiring them to agree to their agent's commission in writing before touring homes, but they can still negotiate with the seller to have the fees covered as part of the offer process. Sellers now need to decide how much, if anything, they're willing to contribute towards the buyer's agent fee, which will be negotiated during the offer stage.

    To find a real estate agent in Illinois, Redfin agents are available to guide you through every step of the transaction. If you choose to sell your home without using an agent (FSBO sale), you can avoid commission fees, but this option requires handling all aspects of the sale.