{"id":96762,"date":"2024-09-30T13:13:24","date_gmt":"2024-09-30T20:13:24","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96762"},"modified":"2024-09-30T13:13:24","modified_gmt":"2024-09-30T20:13:24","slug":"massachusetts-real-estate-commissions","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/massachusetts-real-estate-commissions\/","title":{"rendered":"Massachusetts Real Estate Commissions: What You Can Expect in 2024"},"content":{"rendered":"

When stepping into the <\/span>Massachusetts real estate market<\/span><\/a>, it’s important to be aware of how real estate commissions work, whether you’re buying or selling a property. In 2024, <\/span>new nationwide policies<\/span><\/a> reshaped how commissions are structured, aiming to make them more transparent. These changes are designed to empower both buyers and sellers to make smarter financial decisions.<\/span><\/p>\n

This guide will break down the essentials of real estate commissions in Massachusetts, explain the recent changes, and offer advice on how to manage these costs effectively.<\/span><\/p>\n

\"Fall<\/p>\n

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

Before diving into commission details, it’s helpful to know the state of the <\/span>housing market<\/span><\/a> in Massachusetts:<\/span><\/p>\n\n\n\n\n\n
Median Home Sale Price<\/b><\/td>\n$642,300<\/span><\/td>\n<\/tr>\n
Housing Supply<\/b><\/td>\n16,430 (+10.4% YoY)<\/span><\/td>\n<\/tr>\n
Homes Sold Above List Price<\/b><\/td>\n52.2% (-7.8 pts YoY)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

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

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

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

Traditionally, sellers paid for both their <\/span>agent’s commission<\/span><\/a> and the buyer’s agent’s fee. But as of August 17, 2024, new rules in Massachusetts require buyers to <\/span>agree<\/span><\/a> in writing to their agent’s commission before touring homes.<\/span><\/p>\n

Although buyers can still request that the seller cover these fees as part of their offer, the exact amount is now more flexible and can be negotiated.<\/span><\/p>\n

\"view<\/h2>\n

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

Commissions in Massachusetts are not fixed; they can vary based on the transaction, the agent involved, and negotiations. Several factors, including the location of the property, market conditions, and the services provided by the agent, can influence commission rates.<\/span><\/p>\n

Below is a table of typical commissions based on median home prices in <\/span>Massachusetts’s 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
Boston<\/span><\/a><\/td>\n$800,000<\/span><\/td>\n$12,000<\/span><\/td>\n$24,000<\/span><\/td>\n$40,000<\/span><\/td>\n<\/tr>\n
Cambridge<\/span><\/a><\/td>\n$938,000<\/span><\/td>\n$14,070<\/span><\/td>\n$28,140<\/span><\/td>\n$46,900<\/span><\/td>\n<\/tr>\n
Quincy<\/span><\/a><\/td>\n$553,500<\/span><\/td>\n$8,303<\/span><\/td>\n$16,605<\/span><\/td>\n$27,675<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At Redfin, we aim to provide excellent value with <\/span>listing fees as low as 1%<\/span><\/a>* for sellers. For buyers, our fees differ by location but remain competitive to help your offer stand out in the market.<\/span><\/p>\n

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

Real estate commissions are negotiable in Massachusetts, as they are not regulated by law. This gives both buyers and sellers room to discuss commission rates with their agents. The result of these negotiations will depend on factors like the scope of the agent’s services, the type of transaction, and the existing relationship between the agent and the client.<\/span><\/p>\n

In negotiations, you’ll want to think about the agent’s experience, their marketing efforts, and their understanding of the local market. Sellers who have homes that are expected to sell quickly may be able to negotiate lower rates. <\/span>Dual agency<\/span><\/a> deals\u2014where one agent represents both the buyer and seller\u2014could also lead to reduced commissions since only one agent is involved.<\/span><\/p>\n

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