I
f you've ever hired a Realtor to sell your home, you may have paid commissions for both that agent and the buyer's agent. However, this is no longer the case in Ohio due to recent changes implemented by the National Association of Realtors after a major lawsuit. As a result, buyers must now discuss compensation directly with their agent.
In Ohio, the average total real estate commission fee is 5.6% of a home's sale price, which is higher than the national average. This could be due to lower median house prices in the state compared to the rest of the country. For example, according to Redfin data, the median sale price of a home in Ohio was $257,700 as of August 2024.
The total commission fee would be $14,431 for both agents combined, but now buyers may be responsible for paying their own agent directly. The split between listing and buyer's agents is not even: listing agents average 2.92%, while buyer's agents average 2.68%. For a median-priced Ohio home sale, this works out to $7,525 for the listing agent and $6,906 for the buyer's agent.
Commission fees vary depending on location within Ohio. Here are some examples:
* Cincinnati: $265,000 (median home-sale price), total commission $14,840, listing agent commission $7,738, buyer's agent commission $7,102
* Cleveland: $125,000 (median home-sale price), total commission $7,000, listing agent commission $3,650, buyer's agent commission $3,350
* Columbus: $290,000 (median home-sale price), total commission $16,240, listing agent commission $8,468, buyer's agent commission $7,772
A real estate agent's commission covers various services, including advocating for their client, advising in negotiations, and problem-solving. Agents also market properties to attract buyers and represent clients' interests.
In Ohio, sellers used to pay all agent commissions, but now buyers and their agents decide upfront how much the buyer's agent will earn. This can be a buyer expense, but they may ask the seller to pay it when submitting an offer.
While hiring a real estate agent is not required in Ohio, working with one has several benefits, including extensive knowledge of local markets and professional networks. Agents guide clients through the market and achieve their goals.
If you're concerned about Realtor fees in Ohio, there are ways to reduce or eliminate them:
* Negotiate the rate: Before hiring an agent, try negotiating a lower commission rate.
* Work with a discount agent: Companies like Clever and Redfin charge lower listing fees.
* Sell without an agent: You can sell your house on your own, but you'll assume all of the work an agent typically performs.
* Sell to a cash homebuyer: These firms make fast, all-cash offers and close deals within weeks, usually without charging any fees or commissions.
To find a knowledgeable local real estate agent in Ohio, start by asking friends, family, and neighbors for referrals. You can also search online for well-reviewed agents with experience in your area. Interview multiple candidates before choosing one to ensure you feel comfortable working with them.
