W
hen entering the Massachusetts real estate market, it's essential to understand how commissions work, whether buying or selling a property. In 2024, nationwide policies reshaped commission structures to make them more transparent and empower buyers and sellers to make informed decisions.

    Before diving into commission details, consider the current state of the Massachusetts housing market:

    * Median Home Sale Price: $642,300

    * Housing Supply: 16,430 (+10.4% YoY)

    * Homes Sold Above List Price: 52.2% (-7.8 pts YoY)

    Real estate commissions are fees paid to agents for facilitating home sales or purchases. Traditionally, sellers covered both their agent's commission and the buyer's agent fee. However, as of August 17, 2024, new rules require buyers to agree in writing to their agent's commission before touring homes.

    Commissions in Massachusetts vary based on transaction specifics, agent involvement, and negotiations. Several factors influence commission rates, including location, market conditions, and services provided by the agent. Here are typical commissions for median home prices in Massachusetts's largest cities:

    * Boston: $800,000 (1.5%=$12,000, 3%=$24,000, 5%=$40,000)

    * Cambridge: $938,000 (1.5%=$14,070, 3%=$28,140, 5%=$46,900)

    * Quincy: $553,500 (1.5%=$8,303, 3%=$16,605, 5%=$27,675)

    Redfin offers competitive listing fees as low as 1% for sellers and negotiable rates for buyers.

    Real estate commissions are negotiable in Massachusetts, allowing buyers and sellers to discuss commission rates with their agents. Factors influencing negotiations include the agent's experience, marketing efforts, and understanding of the local market. Sellers can negotiate lower rates by leveraging their home's appeal or considering dual agency deals.

    Tips for successful negotiation:

    * Shop around: Compare services and commission rates from multiple agents.

    * Consider performance incentives: Negotiate bonuses for faster sales or higher closing prices.

    * Leverage property appeal: Highly desirable homes may give sellers more power to negotiate lower fees.