W
hether you're buying or selling in Utah's housing market, understanding real estate commissions is crucial. Recent changes aim to increase transparency and communication regarding commission fees, giving buyers and sellers greater control over costs.

    Before diving into the specifics of real estate commissions, it's helpful to get a snapshot of the state of the Utah housing market:

    * Median Home Sale Price: $549,700

    * Housing Supply: 16,224 (+10.2% YoY)

    * Homes Sold Above List Price: 21.9% (-3.5 pts YoY)

    Real estate commissions are fees paid to agents for facilitating home purchases or sales. Traditionally, sellers covered both their agent's commission and the buyer's agent fee. However, starting August 17, 2024, buyers must sign an agreement specifying their agent's commission before viewing properties.

    In Utah, commission rates vary depending on factors like location, market conditions, and services provided by the agent. Here are typical commission costs in some of Utah's largest cities:

    * Salt Lake City: $535,500 (1.5% = $8,033, 3% = $16,065, 5% = $26,775)

    * West Valley City: $490,000 (1.5% = $7,350, 3% = $14,700, 5% = $24,500)

    * West Jordan: $500,000 (1.5% = $7,500, 3% = $15,000, 5% = $25,000)

    Redfin offers competitive listing fees starting at just 1%. Buyer fees can vary by location, but Redfin works to keep rates affordable.

    Real estate commissions in Utah are negotiable. Agents may adjust their rates based on the transaction's details, services provided, and property appeal. When negotiating, consider factors like an agent's local market expertise, marketing strategies, and home condition.

    Tips for a successful negotiation include:

    * Consulting several agents

    * Offering incentives for performance bonuses

    * Using property appeal to negotiate lower fees

    Recent changes in 2024 introduced two significant updates:

    * Buyers must sign a document outlining their agent's fee before viewing homes.

    * Buyer agent commissions are no longer visible in MLS listings.

    These changes impact buyers by requiring them to agree to their agent's commission in writing before home tours. Sellers now need to determine how much they're willing to contribute toward the buyer's agent fee, which will be negotiated during the offer process.