U
nderstanding real estate commissions in Montana is crucial if you're planning to buy or sell a property in the state. Recent changes aim to provide greater transparency and simplify the process, helping buyers and sellers make informed decisions about costs.

    Before diving into commission specifics, it's helpful to understand the current state of Montana's housing market:

    * Median Home Sale Price: $521,000

    * Number of Homes Sold: -2.9% YoY

    * Number of Homes for Sale: +23.3% YoY

    Real estate commissions are fees paid to agents for facilitating a sale or purchase. Traditionally, sellers paid both their agent's commission and the buyer's agent's fee from the sale proceeds. However, as of August 17, 2024, Montana buyers must sign an agreement outlining their agent's fee before beginning home tours.

    In Montana, there are no fixed commission rates, and they depend on factors like property location, market conditions, and agent services. Buyers and sellers can negotiate these fees based on their specific needs. Here are typical commission rates in some of Montana's largest cities:

    * Billings: $374,000 (1.5%: $5,610, 3%: $11,220, 5%: $18,700)

    * Missoula: $575,000 (1.5%: $8,625, 3%: $17,250, 5%: $28,750)

    * Great Falls: $304,500 (1.5%: $4,568, 3%: $9,135, 5%: $15,225)

    Commission rates are fully negotiable in Montana. Buyers and sellers can work with their agents to find a fee structure that fits their situation. Variables like agent expertise, property location, and market trends can influence negotiations.

    Tips for successful negotiation include:

    * Talking to multiple agents

    * Considering performance-based fees

    * Leverage your property's strengths

    Redfin offers listing fees as low as 1% in Montana, and buyers' rates vary by location but are designed to be competitive.