W
hen buying or selling a home in Michigan, understanding real estate commission structures is crucial. Changes implemented in 2024 aim to increase clarity and transparency regarding these fees, allowing for more informed decisions.

    Before diving into commission structures, it's essential to understand the current state of Michigan's housing market:

    * Median Home Sale Price: $270,000

    * Housing Supply: 36,677 (+7.1% YoY)

    * Homes Sold Above List Price: 35.9% (-6.3 pts YoY)

    Real estate commissions are fees paid to agents facilitating home buying or selling. These fees are typically a percentage of the property's final sale price and are paid at closing.

    Traditionally, sellers covered both their agent's commission and the buyer's agent fee. However, as of August 17, 2024, buyers must sign an agreement outlining their agent's commission before touring homes. While buyers can still negotiate for sellers to cover a portion of these fees, commissions are now more flexible and negotiable.

    Average real estate commission rates in Michigan vary depending on location, market conditions, and services provided by the agent. Here's a breakdown of typical commission costs in some of Michigan's largest cities:

    * Detroit: 1.5% ($96,395), 3% ($2,892), 5% ($4,820)

    * Grand Rapids: 1.5% ($4,235), 3% ($8,470), 5% ($14,117)

    * Warren: 1.5% ($3,075), 3% ($6,150), 5% ($10,250)

    At Redfin, we offer competitive rates with listing fees as low as 1%. Buyer fees can differ by location, but we strive to keep them affordable.

    Commissions in Michigan are open to negotiation. Agents may adjust their fees based on the transaction's specifics, property appeal, and services provided. When negotiating, consider the agent's knowledge of the local market, marketing approach, and your home's condition.

    Tips for a successful negotiation:

    * Talk to multiple agents to compare services and commission rates

    * Consider performance-based incentives

    * Utilize your property's strengths to negotiate lower fees

    Michigan real estate commission FAQs:

    * What are the new real estate commission rules in 2024? Buyers must sign an agreement outlining their agent's commission before touring homes, and buyer agent commission details may not be visible in MLS listings.

    * How do the changes impact buyers? Buyers now agree in writing to their agent's commission before looking at homes but can still negotiate with sellers to cover some or all of these fees.

    * How do the changes impact sellers? Sellers decide how much they're willing to contribute toward the buyer's agent commission, finalized during offer negotiations.

    To find a real estate agent in Michigan, Redfin agents are available to guide you through every step. You can also avoid commission fees by selling your home without an agent, but this requires handling all aspects of the sale yourself.