If you are roaming Rhode Island housing marketunderstanding how real estate commissions work is important. Changes implemented across the country by 2024 have increased transparency, helping buyers and sellers better understand the associated costs. These updates aim to simplify operations, allowing everyone involved to make smarter financial decisions.
Whether you’re new to the Rhode Island real estate scene or have experienced real estate sales before, this guide will shed light on commission properties in today’s market, ensuring you’re well-informed.
The current state of the Rhode Island housing market
Before we get into the details of real estate commissions, it’s important to understand the current real estate market Rhode Island:
| Median Home Sales Price | $512,300 |
| Provision of Housing | 3,024 (+11.7% YOY) |
| Homes Selling Above List Price | 52.8% (-5.8 pts YoY) |
Understanding real estate commissions in Rhode Island
What are real estate commissions?
Housing commissions it is money paid to agents for their work in helping to buy or sell a house. These fees, usually calculated as a percentage of the sales price, are paid at the time of payment closing process.
Who pays the commission?
Traditionally, the seller handles the commission fees to both their agent and the buyer’s agent, who pays out of the proceeds of the sale. However, as of August 17, 2024, Rhode Island consumers are required to sign the agreement explaining their agent’s commission before they even start visiting the properties.
While buyers can still negotiate for sellers to contribute their agent’s fee as part of the offer, this is not a given—the final arrangement is subject to negotiation.
Real estate commission rates in Rhode Island
Rhode Island has no fixed commission rates. These rates are influenced by several factors, including the location of the property, current market conditions, and the services provided by the agent. Both buyers and sellers have the freedom to negotiate terms that suit their needs.
Here is a breakdown of sample commission fees for some of the Largest cities in Rhode Island:
| The city | Median Home Sales Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Providence | $483,840 | $7,257 | $14,515 | $24,192 |
| Cranston | $444,950 | $6,674 | $13,349 | $22,248 |
| Warwick | $415,000 | $6,225 | $12,450 | $20,750 |
At Redfin, our goal is to deliver exceptional value to our clients. That’s why we offer sellers a listing fee starts at only 1%*. For buyers, our commission rates vary by location but are always designed to remain competitive, helping to make your offer more attractive.
Can you negotiate real estate commissions in Rhode Island?
Yes, the commissioners in Rhode Island are fully interactive. There are no fixed pricing rules, allowing both parties to settle on a self-serve commission structure. Various factors, such as the agent’s level of experience, geographic location, and market trends, play a role in determining the final price. Additionally, if one agent represents both the buyer and the seller (dual agency), this could open the door to further commission reductions.
Tips for a successful interview
- Contact more agents: Talk to several agents to compare their services and commission rates.
- Motivational properties: Consider offering bonuses based on faster sales performance or higher-than-expected auction prices.
- Highlight the power of architecture: If your home is in a highly sought-after area, you may have more negotiating power for lower commissions.
Rhode Island Real Estate Commission FAQs
What are the changes to the real estate commission? Buyers now need to agree their agent’s fee in writing before starting a property tour. Additionally, in some markets, the buyer’s agent’s compensation may no longer be reflected in the MLS listing. Learn more about real estate commission changes here.
How do the changes affect consumers in Rhode Island? Buyers must sign off on their agent’s commission before they start viewing homes, although they can still ask the seller to contribute this amount during negotiations.
How do the changes affect retailers in Rhode Island? Sellers continue to work with their listing agent to negotiate how much, if any, commission will be awarded to the buyer’s agent. This can be influenced by the offer they receive and other factors.
How to find a real estate agent in Rhode Island? If you’re looking to buy or sell a home in Rhode Island, Redfin is ready to help. Reach out to a local A Redfin agent today to get started.
How can you avoid fees? If you’re looking to save on commission costs, you might consider selling your property yourself sale-by-owner (FSBO) method. However, this means handling everything yourself—from marketing and presentations to paperwork and interviews.
*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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