U
nderstanding real estate commissions is crucial when buying or selling property in Wisconsin. Recent national changes have brought more transparency to the process, ensuring both buyers and sellers are aware of involved fees.

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

    * Median Home Sale Price: $327,600

    * Housing Supply: 22,319 (+3.3% YoY)

    * Homes Sold Above List Price: 43.3% (-7.7 pts YoY)

    Real estate commissions represent fees paid to agents for facilitating home purchases or sales. Typically calculated as a percentage of the final sale price, these fees are settled during closing.

    Historically, sellers have covered both their agent's commission and the buyer's agent fee from the proceeds of the sale. However, new rules require buyers to agree to their agent's fee in writing before viewing properties. Buyers can still request that sellers cover their agent's fee as part of the offer, but the final amount is negotiable.

    Commission rates vary based on factors like property location, market conditions, and services provided by the agent. Here are typical commission costs for some of Wisconsin's largest cities:

    * Milwaukee: 1.5% ($3,375), 3% ($6,750), or 5% ($11,250)

    * Madison: 1.5% ($6,120), 3% ($12,240), or 5% ($20,400)

    * Kenosha: 1.5% ($3,630), 3% ($7,260), or 5% ($12,100)

    Redfin offers competitive rates, with listing fees starting as low as 1%. Buyers can also negotiate commissions, taking into account factors like the agent's experience and market dynamics.

    Tips for a successful negotiation include comparing agents, offering incentive-based fees, and leveraging your property's appeal.