R
eal estate commissions play a significant role in shaping the financial outlook of homebuyers and sellers in North Dakota. In 2024, new rules were introduced to promote transparency and clarity around commission costs, giving both buyers and sellers greater room for negotiation.

    Before diving into commission details, it's essential to understand the current state of the housing market in North Dakota:

    * Median Home Sale Price: $289,000

    * Number of Homes Sold: -9.64% YoY

    * Number of Homes for Sale: -17.3% YoY

    Understanding real estate commissions is crucial when navigating the home-buying or selling process. Real estate commissions are payments made to agents following a successful sale, typically calculated as a percentage of the sale price.

    Historically, sellers have covered both their listing agent's and buyer's agent's commissions. However, as of August 17, 2024, buyers must sign an agreement specifying their agent's commission before touring homes. This change allows for variability in the amount a seller may pay for a buyer's agent, making it completely negotiable.

    Average real estate commission rates vary depending on factors like local market conditions and specific agreements between agents and clients. In North Dakota's largest cities, estimated commissions are:

    * Fargo: $295,000 (1.5% = $4,425, 3% = $8,850, 5% = $14,750)

    * Bismarck: $344,900 (1.5% = $5,174, 3% = $10,347, 5% = $17,245)

    * Grand Forks: $290,000 (1.5% = $4,350, 3% = $8,700, 5% = $14,500)

    Real estate commissions are negotiable and can be influenced by factors such as the services provided by your agent and the nature of your relationship. When discussing commissions with your agent, consider their local expertise and marketing strategies.

    Tips for a successful negotiation include:

    * Comparing services offered by multiple agents

    * Proposing a commission structure that rewards the agent for a quicker or higher-value sale

    * Using high-demand areas to negotiate lower commission rates

    In 2024, two main updates were made to real estate commissions: buyers must agree on their agent's commission in writing before house tours begin, and in some areas, the MLS no longer publicly displays buyer agent commission rates.