{"id":96727,"date":"2024-09-27T12:09:13","date_gmt":"2024-09-27T19:09:13","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96727"},"modified":"2024-09-27T12:09:13","modified_gmt":"2024-09-27T19:09:13","slug":"pennsylvania-real-estate-commissions","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/pennsylvania-real-estate-commissions\/","title":{"rendered":"Pennsylvania Real Estate Commissions: What You Can Expect in 2024"},"content":{"rendered":"

Understanding how real estate commissions work is vital when buying or selling a home in <\/span>Pennsylvania<\/span><\/a>. In 2024, <\/span>new rules<\/span><\/a> were introduced nationwide, bringing more transparency and clearer communication regarding real estate commissions. These changes help both buyers and sellers make more informed choices about the costs involved in real estate transactions.<\/span><\/p>\n

Whether you’re <\/span>purchasing your first home<\/span><\/a> or you’re a seasoned seller, this guide will provide the key information you need about real estate commissions in Pennsylvania and how they may affect your home sale or purchase.<\/span><\/p>\n

\"downtown-philadelphia\"<\/p>\n

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

Before discussing real estate commissions, it\u2019s important to look at Pennsylvania’s current <\/span>housing market trends<\/span><\/a>:<\/span><\/p>\n\n\n\n\n\n
Median Home Sale Price<\/b><\/td>\n$310,100<\/span><\/td>\n<\/tr>\n
Housing Supply<\/b><\/td>\n39,250 (+5.2% YoY)<\/span><\/td>\n<\/tr>\n
Homes Sold Above List Price<\/b><\/td>\n34.9% (-5.7 pts YoY)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

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

Real estate commissions<\/span><\/a> are fees paid to agents for their services in facilitating the sale or purchase of a home. These fees are typically a percentage of the home\u2019s sale price and are paid when the deal <\/span>closes<\/span><\/a>.<\/span><\/p>\n

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

Traditionally, the seller has paid both their <\/span>agent’s commission<\/span><\/a> and the buyer\u2019s agent fees. However, from August 17, 2024, buyers are now required to sign an <\/span>agreement<\/span><\/a> that specifies their agent\u2019s fee before they begin home tours.<\/span><\/p>\n

Although buyers can still request that the seller covers their agent\u2019s fee during the negotiation process, the amount sellers contribute can vary and is entirely negotiable.<\/span><\/p>\n

\"luxury<\/h2>\n

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

Commission rates vary based on the terms of the transaction and the agreement between the parties involved. While there are common percentages, all commissions are negotiable, which allows buyers and sellers to customize the structure according to their preferences.<\/span><\/p>\n

Several factors, such as the property\u2019s location, market conditions, and the agent\u2019s services, can influence the commission. Below is an example of commission rates for <\/span>major cities in Pennsylvania<\/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
Philadelphia<\/span><\/a><\/td>\n$275,000<\/span><\/td>\n$4,125<\/span><\/td>\n$8,250<\/span><\/td>\n$13,750<\/span><\/td>\n<\/tr>\n
Pittsburgh<\/span><\/a><\/td>\n$274,500<\/span><\/td>\n$4,118<\/span><\/td>\n$8,235<\/span><\/td>\n$13,725<\/span><\/td>\n<\/tr>\n
Allentown<\/span><\/a><\/td>\n$238,000<\/span><\/td>\n$3,570<\/span><\/td>\n$7,140<\/span><\/td>\n$11,900<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At Redfin, our goal is to offer consumers the best value. Our <\/span>listing fees<\/span><\/a> for sellers start as low as 1%*, and while buyer fees differ by location, our rates remain competitive, helping your offer stand out in the market.<\/span><\/p>\n

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

Absolutely! Like the rest of the country, real estate commissions in Pennsylvania are fully negotiable. Some agents may be open to adjusting their fees based on the circumstances of the transaction or the services they provide.<\/span><\/p>\n

When negotiating, consider factors like the agent\u2019s marketing strategies, the services offered, and their expertise in your local market. Agents may be more willing to lower their fees for a high-demand property or if they represent both buyer and seller in a <\/span>dual agency<\/span><\/a>.<\/span><\/p>\n

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