When buying or selling a home in MarylandIt is important to have a clear understanding of real estate commissions for proper budgeting and negotiation. In 2024, new rules across the US they have revamped the way these commissions are presented, giving greater clarity to both buyers and sellers. These updates are designed to make the process more transparent, helping people make informed decisions when dealing with real estate payments.
Even if you are a the first buyer or an experienced seller, this Redfin guide will walk you through the details of real estate commissions in Maryland and what to expect in today’s market.
The current state of the Maryland housing market
Before we get into the real estate commissions in Maryland, let’s first look at the state ones housing market.
| Median Home Sales Price | $436,100 |
| Provision of Housing | 17,866 (+10% YOY) |
| Homes Selling Above List Price | 41.9% (-3.8 pts YoY) |
Understanding real estate commissions in Maryland
What are real estate commissions?
Housing commissions are fees paid to agents by home buyers or sellers for their assistance in successfully completing a property transaction. These fees are usually a percentage of the home’s price and are paid when the deal is made it closes.
Who pays the commission?
Historically, sellers have been responsible for covering both of their own agent’s commission and buyer’s agent fees from sales proceeds. However, as of August 17, 2024, buyers must now sign a written agreement outlining their agent’s fee before they start visiting homes.
While buyers can still negotiate with a seller to pay their agent’s commission during the offer process, this change means that the amount a seller may contribute to a buyer’s agent’s commission can vary and is not fully negotiable.
Real estate commission rates in Maryland
In Maryland, real estate commission rates can vary greatly depending on the specific terms of the agreement and the agreements between the parties involved. While there is a standard expectation of commission percentages, these fees are negotiable, allowing buyers and sellers to work with their agents to find the right structure.
Several factors, including location, current market trends, and services provided by the agent, can influence the final commission amount. This flexibility allows both parties to negotiate and adjust payments according to their budgets and goals. Below is a detailed overview of sample commission rates based on median home prices for some of them Major cities in Maryland.
| The city | Median Home Sales Price | 1.5% Property Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| In Baltimore | $216,000 | $3,240 | $6,480 | $10,800 |
| Columbia | $510,000 | $7,650 | $15,300 | $25,500 |
| Germantown | $460,000 | $6,900 | $13,800 | $23,000 |
At Redfin, we strive to provide exceptional value to our customers. That’s why we offer sellers a listing fee is 1% down.* For buyers, our fees vary by location but are always competitive to help your offer stand out and increase your chances of finding the home you want.
Can you negotiate real estate commissions in Maryland?
Absolutely! There are no federal or state laws in the US that set commission rates, meaning agents may be open to negotiating lower fees. Flexibility in commission rates depends on the type of work, level of service, and the relationship between the client and the agent.
When discussing commission rates with an agent, it is important to weigh the quality of service, the marketing method they plan to use, and their experience in the Maryland real estate market. For sellers, properties that are highly desirable or expected to sell quickly can offer an opportunity to negotiate a lower commission. Additionally, if the agent manages both the buyer and the seller in a dual agencythere may be room for additional discounts as only one agent is involved in the deal.
Tips for a successful interview
- Shop around: Compare different agents and their commission offers before making a decision.
- Consider performance-based agreements: You can negotiate higher commissions for faster sales or better final offers.
- Use your local appeal: If your home is in a sought-after area, agents may be willing to lower their fees.
Maryland housing commission FAQ
What are the changes to the real estate commission? There are two important updates to the commission’s procedures. First, buyers must agree to their agent’s commission in writing before starting the home tour. Second, in many markets, agent compensation is no longer reflected in MLS listings. Read more about Housing commission changes here.
How do the changes affect Maryland consumers? Buyers now need to sign a formal agreement detailing the amount of their agent’s commission before visiting homes. However, you can still ask the seller to cover your agent’s commission as part of your offer.
How do the changes affect Maryland retailers? Sellers will still negotiate with their listing agent regarding the compensation offered to the buyer’s agent, if any. Sellers can review and adjust any commission requests during the offer process.
How to find a real estate agent in Maryland? Ready to start your buying or selling journey? Connect with a Redfin agent today for expert guidance.
How can you avoid fees? You can sell your home without an agent in Maryland to save on commissions, but be prepared for the added responsibilities of selling, organizing shows, and managing paperwork. FSBO (For Sale By Owner) jobs require more involvement on your part but eliminate agent fees.
*Listing fees are subject to change, minimum applicable. Any buyer’s agent fees the seller chooses to cover are not included. The listing fee is increased by 1% of the purchase price if the buyer is not represented. Sell for 1% of listings only if you shop with Redfin within 365 days of closing your Redfin listing. We’ll charge a 1.5% listing fee, and send you a check for the 0.5% difference after you buy your next home with us. Read more here.
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