Understanding real estate commissions is crucial when buying or selling a home in Maryland. As we enter 2024, new regulations across the U.S. have transformed how these commissions are handled, promoting transparency and giving both buyers and sellers clearer insights into their financial commitments. Here’s a comprehensive guide to what you can expect from Maryland’s real estate commissions in the current market.
Current State of the Maryland Housing Market
Before delving into the specifics of real estate commissions, let’s first review the state of Maryland’s housing market:
- Median Home Sale Price: $436,100
- Housing Supply: 17,866 (+10% YoY)
- Homes Sold Above List Price: 41.9% (-3.8 pts YoY)
If you’re considering whether to rent or buy, exploring your options and securing a mortgage is essential. Use tools to compare renting vs. buying costs and get pre-approved for a loan to streamline your home-buying process.
Understanding Real Estate Commissions in Maryland
What Are Real Estate Commissions?
Real estate commissions are fees paid to agents for their services in completing a property transaction. Typically expressed as a percentage of the home’s sale price, these fees are paid upon closing the deal.
Who Pays the Commission?
Traditionally, sellers have covered both their agent’s commission and the buyer’s agent’s fees from the sale proceeds. However, as of August 17, 2024, buyers are now required to sign a written agreement specifying their agent’s fee before viewing homes.
At Redfin, we offer competitive rates, with sellers paying as little as 1% in listing fees and varied buyer fees based on location.
Can You Negotiate Real Estate Commissions in Maryland?
Absolutely! No federal or state laws dictate commission rates, so agents often agree to negotiate fees. Factors influencing commission flexibility include transaction type, service level, and agent-client relationships.
Tips for Successful Negotiation:
Shop Around: Compare commission rates from different agents before making a decision.
Performance-Based Agreements: Negotiate higher commissions for quicker sales or better offers.
Leverage Your Property’s Appeal: Homes in high-demand areas may yield lower fees due to competitive market conditions.
Maryland Real Estate Commission FAQs
What Are the Changes to Real Estate Commissions?
Two major changes have occurred: buyers must now formally agree to their agent’s commission before house tours, and agent compensation is no longer always displayed on MLS listings.
How Do These Changes Impact Buyers in Maryland?
Buyers need to sign an agreement detailing their agent’s commission rate before viewing homes. They can still negotiate with sellers to cover their agent’s commission as part of the offer process.
How Do These Changes Impact Sellers in Maryland?
Sellers continue to negotiate with their listing agent regarding compensation for the buyer’s agent. Adjustments to commission requests can be made during the offer process.
How Do You Find a Real Estate Agent in Maryland?
Connect with a Redfin agent for expert advice on buying or selling your home in Maryland.
How Can You Avoid Fees?
Selling a home without an agent (FSBO) can eliminate commission fees, but be prepared for additional responsibilities like marketing, scheduling showings, and handling paperwork.
Navigating the Maryland real estate market with these updated commission practices will help you make more informed decisions and potentially save on costs. Whether buying or selling, understanding these changes can streamline your process and lead to a more successful transaction.
