If you are buying or selling Maryland HomeA clear understanding of real estate commissions is essential for proper budgeting and negotiation. In 2024, New Rules Real estate agents across the United States are reviewing how these fees are presented to make them more transparent for both buyers and sellers. These updates are intended to make the process more transparent and allow individuals to make informed choices when dealing with real estate commissions.
you First-time buyer Or if you’re an experienced seller, this Redfin guide will give you the lowdown on real estate commissions in Maryland and what to expect in today’s market.
Maryland’s Housing Market
Before we dive into Maryland real estate fees, let’s first take a look at the state’s Housing market.
| Median home sales price | $436,100 |
| Housing Supply | 17,866 (10% increase from the previous year) |
| Homes sold above list price | 41.9% (down 3.8 points from the previous year) |
Understanding Maryland Real Estate Commissions
What are real estate commissions?
Real Estate Commission These are fees paid by a home buyer or seller to a real estate agent for successfully completing a real estate transaction. These fees are usually a percentage of the sales price of the home and are paid at the time the deal closes. close.
Who pays the fees?
Historically, sellers have Agent Fees The purchaser’s agent’s commission will also be deducted from the sale proceeds. However, from 17 August 2024: The buyer must sign Before you start showing homes, have a written contract that specifies the agent’s commission.
While buyers can still negotiate with sellers during the offer process to cover their agent’s commission, this change means the amount a seller can cover in buyer’s agent commission will vary and be fully negotiable.
Average Real Estate Commission Rates in Maryland
In Maryland, commission rates in real estate transactions can vary widely based on the specific circumstances of the transaction and the agreements between the parties involved. While there are general expectations for commission rates, these fees are negotiable, and buyers and sellers can work with their agents to find a structure that works for them.
Several factors can affect the final commission rate, including the location of the property, current market trends, and the services the agent provides. This flexibility allows both parties to negotiate and adjust the commission depending on their budget and goals. Below is a detailed overview of sample commission rates based on median home prices in several areas. Major cities in Maryland.
| city | Median home sales price | Real estate commission 1.5% | Real estate commission 3% | Real estate commission 5% |
| Baltimore | $216,000 | $3,240 | $6,480 | $10,800 |
| Columbia | $510,000 | $7,650 | $15,300 | $25,500 |
| Germantown | $460,000 | $6,900 | $13,800 | $23,000 |
At Redfin, we strive to provide great value to our customers. That’s why we offer our sellers Listing fees start from 1%*For buyers, our fees vary by location, but we keep them competitive to help your offer stand out and increase your chances of securing the home you want.
Can you negotiate real estate commissions in Maryland?
Absolutely! Because there are no federal or state laws mandating commission rates in the United States, agents have the ability to negotiate lower commission rates. Commission rate flexibility varies depending on the type of transaction, level of service, and the relationship between the client and agent.
When discussing commission rates with an agent, it is important to consider the quality of their services, the marketing techniques they plan to use, and their experience in the Maryland real estate market. For sellers, highly sought-after properties or properties expected to sell quickly may be an opportunity to negotiate lower commission rates. Additionally, if an agent works with both buyers and sellers, Dual AgencyHowever, because there is only one agent involved in the transaction, there may be room for further discounts.
Tips for successful negotiations
- Look around: Compare different agents and their commission offers before making a decision.
- Consider performance-based contracts: You can negotiate a higher commission to sell faster or get a better final offer.
- Making the most of the property’s appeal: If your home is in a popular location, your real estate agent may be willing to lower their commission.
Maryland Real Estate Commission Frequently Asked Questions
What are the changes to real estate commissions? There are two significant changes to commission practices. First, buyers must agree to their agent’s commission in writing before they begin touring homes. Second, in many markets, agent compensation no longer appears on the MLS listing. For more information, see Changes to real estate commissions here.
How does this change affect buyers in Maryland? Buyers currently must sign a formal contract outlining their agent’s commission rate before viewing a home, although they can request that the seller cover their agent’s commission as part of their offer.
How do these changes affect Maryland sellers? The seller will still negotiate with the listing agent regarding the compensation (if any) to be provided to the buyer’s agent. The seller can review and adjust the commission request during the offer process.
How do I find a real estate agent in Maryland? Ready to start your buying or selling journey? Connect with a Redfin Agent Get expert advice today.
How can I avoid fees? You can sell your house No Agent In Maryland, you can save on commission, but be prepared to take on additional responsibilities like marketing, scheduling showings, handling paperwork, etc. FSBO (For Sale By Owner) transactions involve more involvement on the owner’s side, but without the agent commission.
*Listing fees are subject to change and minimums apply. Does not include buyer’s agent fee if seller chooses to cover it. If buyer does not hire an agent, the listing fee will increase by 1% of the sale price. You can only sell with a 1% listing fee if you purchase on Redfin within 365 days of closing on your home you listed on Redfin. We charge a 1.5% listing fee and will pay you the difference of 0.5% by check after you purchase your next home with us. Learn more here.
