{"id":96641,"date":"2024-09-19T12:37:19","date_gmt":"2024-09-19T19:37:19","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96641"},"modified":"2024-09-19T14:54:26","modified_gmt":"2024-09-19T21:54:26","slug":"south-dakota-real-estate-commissions","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/south-dakota-real-estate-commissions\/","title":{"rendered":"South Dakota Real Estate Commissions: What You Can Expect in 2024"},"content":{"rendered":"

Real estate commissions are a crucial aspect of managing costs when buying or selling a <\/span>home in South Dakota<\/span><\/a>. <\/span>New rules<\/span><\/a> implemented in 2024 have altered how commissions are disclosed, making it easier for both buyers and sellers to understand fees and negotiate more effectively. These changes aim to bring greater clarity and transparency to real estate transactions.<\/span><\/p>\n

Whether you’re considering <\/span>buying your first home<\/span><\/a>, or have sold homes before, this guide will provide key information about real estate commissions in South Dakota.<\/span><\/p>\n

\"Rapid<\/p>\n

Current state of the South Dakota housing market<\/span><\/h2>\n

Before getting into commission details, let\u2019s take a quick glance at South Dakota’s <\/span>current housing market<\/span><\/a>:<\/span><\/p>\n\n\n\n\n\n
Median Home Sale Price<\/b><\/td>\n$321,600<\/span><\/td>\n<\/tr>\n
Housing Supply<\/b><\/td>\n4,093 (+12.3% YoY)<\/span><\/td>\n<\/tr>\n
Homes Sold Above List Price<\/b><\/td>\n16.6% (-8.2 pts YoY)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Understanding real estate commissions in South Dakota<\/span><\/h2>\n

What are real estate commissions?<\/span><\/h3>\n

Real estate commissions<\/span><\/a> are the fees paid to agents when a home sale is completed. Typically, these fees are calculated as a percentage of the final sale price and are due at <\/span>closing<\/span><\/a>, serving as payment for the agents\u2019 services throughout the process.<\/span><\/p>\n

Who pays the commission?<\/span><\/h3>\n

Traditionally, sellers have paid for both their own <\/span>agent\u2019s fee<\/span><\/a> and the buyer\u2019s agent\u2019s fee. However, following the changes implemented on August 17, 2024, buyers are now required<\/a> to sign a document specifying their agent\u2019s fee before beginning home tours.\u00a0<\/span><\/p>\n

Although buyers can still request that the seller cover their agent\u2019s fee, these changes mean the amount the seller might pay the buyer\u2019s agent, if any, can vary and is entirely negotiable.<\/span><\/p>\n

\"buffalos<\/h2>\n

Average real estate commission rates in South Dakota<\/span><\/h2>\n

Commission rates can vary depending on the market, location, and property specifics. While there are expectations on commission rates in South Dakota, these fees are always negotiable. Below is a sample of how commissions could look in some of <\/span>South Dakota\u2019s major cities<\/span><\/a>:<\/span><\/p>\n\n\n\n\n\n\n
City<\/b><\/td>\nMedian Home Sale Price<\/b><\/td>\n1.5% Real Estate Commission<\/b><\/td>\n3% Real Estate Commission<\/b><\/td>\n5% Real Estate Commission<\/b><\/td>\n<\/tr>\n
Sioux Falls<\/span><\/a><\/td>\n$320,000<\/span><\/td>\n$4,800<\/span><\/td>\n$9,600<\/span><\/td>\n$16,000<\/span><\/td>\n<\/tr>\n
Rapid City<\/span><\/a><\/td>\n$345,000<\/span><\/td>\n$5,175<\/span><\/td>\n$10,350<\/span><\/td>\n$17,250<\/span><\/td>\n<\/tr>\n
Aberdeen<\/span><\/a><\/td>\n$212,750<\/span><\/td>\n$3,191<\/span><\/td>\n$6,383<\/span><\/td>\n$10,638<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At Redfin, sellers can benefit from a <\/span>listing fee as low as 1%<\/span><\/a>*, while buyers enjoy competitive rates depending on their location, which helps their offers stand out and improves their chances in competitive markets.<\/span><\/p>\n

Can you negotiate real estate commissions in South Dakota?\u00a0<\/span><\/h2>\n

Absolutely! Commission fees are not set in stone. Both buyers and sellers have the opportunity to negotiate the fee structure, allowing for flexibility based on the situation.<\/span><\/p>\n

When discussing commissions, consider the range of services provided by the agent, such as their marketing strategy and local knowledge, which could justify different commission rates.<\/span><\/p>\n

Properties that are highly desirable or expected to sell quickly often provide more room for negotiation. Additionally, if a single agent represents both the buyer and the seller in a <\/span>dual agency<\/span><\/a>, it might be possible to reduce the overall commission costs further.<\/span><\/p>\n

Tips for a successful negotiation<\/span><\/h3>\n