{"id":96730,"date":"2024-09-27T12:51:14","date_gmt":"2024-09-27T19:51:14","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96730"},"modified":"2024-09-27T12:51:14","modified_gmt":"2024-09-27T19:51:14","slug":"illinois-real-estate-commissions","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/illinois-real-estate-commissions\/","title":{"rendered":"Illinois Real Estate Commissions: What You Can Expect in 2024"},"content":{"rendered":"

Whether you’re stepping into the real estate market as a buyer or a seller, having a clear understanding of how real estate commissions work in <\/span>Illinois<\/span><\/a> is key. In 2024, <\/span>new changes <\/span><\/a>were introduced to improve clarity and communication regarding commission structures. These changes aim to give both buyers and sellers more control over the associated costs in real estate transactions.<\/span><\/p>\n

This guide breaks down the essentials of real estate commissions in Illinois and explains how they could impact your upcoming home sale or purchase, whether you’re a <\/span>first-time homebuyer<\/span><\/a> or a seasoned market participant.<\/span><\/p>\n

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

Before diving into the specifics of real estate commissions, it\u2019s useful to grasp the current state of <\/span>Illinois’ housing market<\/span><\/a>:<\/span><\/p>\n\n\n\n\n\n
Median Home Sale Price<\/b><\/td>\n$301,100<\/span><\/td>\n<\/tr>\n
Housing Supply<\/b><\/td>\n45,070 (-1.1% YoY)<\/span><\/td>\n<\/tr>\n
Homes Sold Above List Price<\/b><\/td>\n39.4% (-3.4 pts YoY)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

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

Real estate commissions<\/span><\/a> are payments made to agents for assisting in the buying or selling of homes. These fees are usually calculated as a percentage of the final sale price and are typically settled during the <\/span>closing<\/span><\/a> of the deal.<\/span><\/p>\n

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

Traditionally, the seller has been responsible for paying both their own <\/span>agent’s commission<\/span><\/a> and the buyer’s agent\u2019s fee. However, as of August 17, 2024, buyers must now sign an <\/span>agreement<\/span><\/a> outlining their agent’s commission before beginning home tours.<\/span><\/p>\n

Although sellers can still be asked to cover the buyer\u2019s agent’s commission, the final amount is negotiable and can vary depending on the deal.<\/span><\/p>\n

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

Commission rates in Illinois are not fixed and can vary depending on the specifics of the transaction. Factors such as the home\u2019s location, the current market conditions, and the level of service offered by the agent can all influence the commission rate. Below is an example of typical commission costs in <\/span>Illinois’ 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
Chicago<\/span><\/a><\/td>\n$364,000<\/span><\/td>\n$8,700<\/span><\/td>\n$17,400<\/span><\/td>\n$29,000<\/span><\/td>\n<\/tr>\n
Aurora<\/span><\/a><\/td>\n$315,000<\/span><\/td>\n$24,375<\/span><\/td>\n$48,750<\/span><\/td>\n$81,250<\/span><\/td>\n<\/tr>\n
Joliet<\/span><\/a><\/td>\n$293,000<\/span><\/td>\n$11,625<\/span><\/td>\n$23,250<\/span><\/td>\n$38,750<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At Redfin, we strive to offer competitive rates, with <\/span>listing fees<\/span><\/a> for sellers starting as low as 1%*. While buyer fees can differ based on location, our goal is to keep our rates competitive so your offer stands out in the market.<\/span><\/p>\n

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

Absolutely! Real estate commissions are fully negotiable. Agents are often willing to adjust their rates depending on the specifics of the deal, the type of services they\u2019re providing, and the property\u2019s appeal.<\/span><\/p>\n

When negotiating, you should consider factors like the agent\u2019s experience, their marketing strategies, and the current state of the local housing market. In cases where an agent represents both buyer and seller (<\/span>dual agency<\/span><\/a>), there may be more flexibility to negotiate lower fees.<\/span><\/p>\n

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