{"id":96732,"date":"2024-09-27T12:59:38","date_gmt":"2024-09-27T19:59:38","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96732"},"modified":"2024-09-27T12:59:38","modified_gmt":"2024-09-27T19:59:38","slug":"utah-real-estate-commissions","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/utah-real-estate-commissions\/","title":{"rendered":"Utah Real Estate Commissions: What You Can Expect in 2024"},"content":{"rendered":"

Whether you’re entering the housing market to buy or sell, it\u2019s essential to understand how real estate commissions work in <\/span>Utah<\/span><\/a>. With <\/span>changes<\/span><\/a> introduced in 2024, real estate transactions now offer more transparency and communication regarding commission fees. These updates aim to give both buyers and sellers greater control over the costs involved.<\/span><\/p>\n

This guide will walk you through the fundamental aspects of real estate commissions in Utah and how they might affect your upcoming transaction, whether you\u2019re <\/span>new to the market<\/span><\/a> or have prior experience.<\/span><\/p>\n

\"St.<\/p>\n

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

Before diving into the specifics of real estate commissions, it’s helpful to get a snapshot of the state of the <\/span>Utah housing market<\/span><\/a>:<\/span><\/p>\n\n\n\n\n\n
Median Home Sale Price<\/b><\/td>\n$549,700<\/span><\/td>\n<\/tr>\n
Housing Supply<\/b><\/td>\n16,224 (+10.2% YoY)<\/span><\/td>\n<\/tr>\n
Homes Sold Above List Price<\/b><\/td>\n21.9% (-3.5 pts YoY)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

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

Real estate commissions<\/span><\/a> are fees paid to agents for facilitating the purchase or sale of a home. These fees are usually calculated as a percentage of the final sale price and are paid at the time of <\/span>closing<\/span><\/a>.<\/span><\/p>\n

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

Traditionally, the seller has covered both their <\/span>agent’s commission<\/span><\/a> and the buyer\u2019s agent’s fee. However, starting on August 17, 2024, buyers must now sign an <\/span>agreement<\/span><\/a> specifying their agent’s commission before viewing properties.<\/span><\/p>\n

Although buyers can still negotiate for the seller to cover these fees, the amount is now more flexible and open to negotiation throughout the offer process.<\/span><\/p>\n

\"Luxury<\/p>\n

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

In Utah, commission rates can vary depending on the deal. Factors like the property\u2019s location, market conditions, and the services provided by the agent play a role in determining the commission. Here’s a breakdown of typical commission costs in some of <\/span>Utah\u2019s largest 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
Salt Lake City<\/span><\/a><\/td>\n$535,500<\/span><\/td>\n$8,033<\/span><\/td>\n$16,065<\/span><\/td>\n$26,775<\/span><\/td>\n<\/tr>\n
West Valley City<\/span><\/a><\/td>\n$490,000<\/span><\/td>\n$7,350<\/span><\/td>\n$14,700<\/span><\/td>\n$24,500<\/span><\/td>\n<\/tr>\n
West Jordan<\/span><\/a><\/td>\n$500,000<\/span><\/td>\n$7,500<\/span><\/td>\n$15,000<\/span><\/td>\n$25,000<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At Redfin, we offer competitive<\/span> listing fees for sellers starting at just 1%<\/span><\/a>*. While buyer fees can vary by location, we work to keep our rates affordable and ensure your offer stands out in the market.<\/span><\/p>\n

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

Yes, real estate commissions in Utah are completely negotiable. Agents are often open to adjusting their rates based on the details of the transaction, the services they\u2019re providing, and the appeal of the property.<\/span><\/p>\n

When negotiating, consider factors like the agent\u2019s local market expertise, their marketing strategies, and the condition of your home. If an agent is working as a <\/span>dual agent<\/span><\/a> (representing both buyer and seller), there may be more room to negotiate lower fees.<\/span><\/p>\n

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