{"id":96765,"date":"2024-09-30T15:34:26","date_gmt":"2024-09-30T22:34:26","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96765"},"modified":"2024-10-01T14:04:35","modified_gmt":"2024-10-01T21:04:35","slug":"montana-real-estate-commissions","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/montana-real-estate-commissions\/","title":{"rendered":"Montana Real Estate Commissions: What You Can Expect in 2024"},"content":{"rendered":"

Understanding Montana\u2019s real estate commissions is vital if you\u2019re planning to buy or sell a home in the state. Recent updates in 2024 brought <\/span>nationwide changes<\/span><\/a> designed to provide greater transparency, making it easier for both buyers and sellers to grasp the fees involved. These changes aim to simplify the process and help everyone make more informed decisions about real estate costs.<\/span><\/p>\n

Whether you\u2019re stepping into the <\/span>Montana housing market<\/span><\/a> for the <\/span>first time<\/span><\/a> or have experience selling property, this guide from Redfin will walk you through the key things to know about commissions in the current market.<\/span><\/p>\n

\"montana-landscape\"<\/p>\n

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

Before exploring commission specifics, it\u2019s helpful to get a feel for how Montana\u2019s housing market is performing:<\/span><\/p>\n\n\n\n\n\n
Median Home Sale Price<\/b><\/td>\n$521,000<\/span><\/td>\n<\/tr>\n
Number of Homes Sold<\/b><\/td>\n-2.9% YoY<\/span><\/td>\n<\/tr>\n
Number of Homes for Sale<\/b><\/td>\n+23.3% YoY<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Understanding real estate commissions in Montana<\/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 sale or purchase of a property. Usually calculated as a percentage of the final sale price, these fees are paid at <\/span>closing<\/span><\/a>.<\/span><\/p>\n

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

Traditionally, sellers paid both their <\/span>agent’s commission<\/span><\/a> and the buyer’s agent’s fee from the sale proceeds. However, as of August 17, 2024, Montana buyers must sign an <\/span>agreement<\/span><\/a> that outlines their agent\u2019s fee before beginning home tours.\u00a0<\/span><\/p>\n

While buyers can still ask sellers to pay their agent\u2019s fee as part of an offer, the amount a seller may contribute can vary, and is entirely negotiable.<\/span><\/p>\n

\"City<\/h2>\n

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

In <\/span>Montana<\/span><\/a>, there are no fixed commission rates, as they depend on factors like the property\u2019s location, the market conditions, and the agent\u2019s services. Buyers and sellers are free to negotiate these fees based on their specific needs.<\/span><\/p>\n

Below is a look at typical commission rates based on median home prices in some of <\/span>Montana\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
Billings<\/span><\/a><\/td>\n$374,000<\/span><\/td>\n$5,610<\/span><\/td>\n$11,220<\/span><\/td>\n$18,700<\/span><\/td>\n<\/tr>\n
Missoula<\/span><\/a><\/td>\n$575,000<\/span><\/td>\n$8,625<\/span><\/td>\n$17,250<\/span><\/td>\n$28,750<\/span><\/td>\n<\/tr>\n
Great Falls<\/span><\/a><\/td>\n$304,500<\/span><\/td>\n$4,568<\/span><\/td>\n$9,135<\/span><\/td>\n$15,225<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Redfin works to provide sellers with great value, offering <\/span>listing fees as low as 1%<\/span><\/a>*. For buyers, our rates vary by location, but are designed to be competitive and help you submit a strong offer.<\/span><\/p>\n

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

Yes, commission rates are fully negotiable! Since there are no legal mandates on commission rates, buyers and sellers can work with their agents to find a fee structure that fits their situation. Variables such as the agent\u2019s expertise, property location, and market trends can influence negotiations. Dual agency<\/a> deals, where the same agent represents both buyer and seller, could also allow for reduced fees since only one agent is involved.<\/span><\/p>\n

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