R
eal estate commissions are a significant cost factor in buying or selling a home in South Dakota. New regulations implemented in 2024 have simplified commission disclosure, allowing buyers and sellers to better understand fees and negotiate more effectively.
Whether you're a first-time buyer or an experienced seller, this guide provides essential information about real estate commissions in South Dakota.
South Dakota's current housing market:
Median Home Sale Price: $321,600
Housing Supply: 4,093 (+12.3% YoY)
Homes Sold Above List Price: 16.6% (-8.2 pts YoY)
Real estate commissions are fees paid to agents for their services during a home sale. Typically, these fees are calculated as a percentage of the final sale price and due at closing.
Traditionally, sellers have covered both their agent's fee and the buyer's agent's fee. However, new regulations require buyers to sign an agreement outlining their agent's commission before viewing homes. Buyers can still request that sellers cover their agent's fee, but this is now negotiable.
Average real estate commission rates in South Dakota vary depending on market conditions, location, and property specifics. Here are sample commission rates for major cities:
* Sioux Falls: $320,000 (1.5% = $4,800, 3% = $9,600, 5% = $16,000)
* Rapid City: $345,000 (1.5% = $5,175, 3% = $10,350, 5% = $17,250)
* Aberdeen: $212,750 (1.5% = $3,191, 3% = $6,383, 5% = $10,638)
Commission fees are negotiable in South Dakota. Buyers and sellers can discuss the fee structure based on services provided by the agent, such as marketing strategy and local knowledge.
Tips for successful negotiation:
* Interview multiple agents to compare their services and rates.
* Offer performance-based incentives, like a higher commission for achieving a faster sale or exceeding the expected sale price.
* Leverage your property's appeal in a sought-after area to encourage agents to reduce fees.
South Dakota real estate commission FAQs:
What are the changes to real estate commissions? Buyers must now agree to their agent's fee in writing before viewing homes, and buyer agent commissions may not be visible on MLS listings.
How do the changes impact buyers? Buyers can negotiate with sellers to cover their agent's fee during the offer process.
How do the changes impact sellers? Sellers continue to collaborate with their listing agent to determine if and how much they will contribute toward the buyer's agent's fee.
To find a real estate agent in South Dakota, connect with a Redfin agent for expert guidance. To avoid fees, consider a For Sale By Owner (FSBO) approach, but be aware that this requires handling all aspects of the sale yourself.
