When buying or selling a home in LouisianaIt is important to understand real estate commissions in order to properly budget and negotiate. From 2024, new changes They have changed how real estate commissions are disclosed across the country, giving buyers and sellers more transparency. These updates are designed to ensure clear communication and help people make informed decisions about real estate payments.
Whether you enter the market as the first buyer or an experienced seller, this Redfin guide will provide valuable information on real estate commissions in Louisiana and what to expect in today’s market.
The current state of the Louisiana housing market
Before we examine real estate commissions in Louisiana, it is important to look at the current state of the state housing market circumstances.
| Median Home Sales Price | $251,500 |
| Provision of Housing | 15,718 (+7.9% YOY) |
| Homes Selling Above List Price | 11.9% (-1.4 pts YoY) |
Understanding real estate commissions in Louisiana
What are real estate commissions?
Housing commissions refers to fees paid to agents by real estate buyers or sellers for their services in closing a real estate transaction. These fees are usually a percentage of the final price of the property and are paid in to close of the agreement.
Who pays the commission?
In the past, it was common for a seller to carry both of their own agent’s commission and buyer’s agent fees from sales proceeds. However, as of August 17, 2024, a new law requires buyers to agree to their agent’s fee in writing before starting a home tour.
Buyers can still negotiate with the seller to cover their agent’s commission as part of the offer, but with this change, the amount the seller may pay for the buyer’s agent’s commission is negotiable and can vary from case to case.
Real estate commission rates in Louisiana
Commission rates for real estate transactions in Louisiana can vary greatly depending on the details of the deal and the agreements between the parties involved. While there are general expectations for commission percentages, these fees are fully negotiable. Buyers and sellers can use terms with their agents to create a financing structure that works best for their circumstances.
Several factors, such as location, market demand, and the range of services an agent provides, can affect the final commission rate. This flexibility allows room to adjust payments to meet specific budgets and goals. Below is an overview of sample commission rates based on average home prices for alternatives Largest cities in Louisiana.
| The city | Median Home Sales Price | 1.5% Property Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| New Orleans | $327,000 | $4,905 | $9,810 | $16,350 |
| Baton Rouge | $234,500 | $3,518 | $7,035 | $11,725 |
| Shreveport | $187,500 | $2,813 | $5,625 | $9,375 |
At Redfin, we are dedicated to providing exceptional value to our customers. For sellers, we offer a listing fee starts as low as 1%.* For buyers, our fees vary by location but are always competitive to help your offer stand out and increase your chances of success in the home buying process.
Can you negotiate real estate commissions in Louisiana?
Yes, you can! There are no federal laws or regulations that set commission rates, so agents are often open to negotiating their fees. This flexibility depends on factors such as the type of work, the services required, and your relationship with the agent.
When negotiating, consider the agent’s level of service, their sales techniques, and their knowledge of the local market. Sellers may have more power to negotiate lower prices if their property is highly desirable or likely to sell quickly. Additionally, if the agent represents both the buyer and the seller (dual agency), there may be an opportunity for a reduced amount of commission since only one agent is involved.
Tips for a successful interview
- Rate multiple agents: Review and compare commission structures from several agents before making your choice.
- Consider performance-based incentives: Discuss the motivations that tie commission rates to performance, such as a higher commission for faster sales or a better sales price.
- Use your local appeal: If your property is in a desirable area, use this to negotiate a lower commission, as agents may be flexible on fees for attractive listings.
Louisiana real estate commission FAQs
What are the changes to the real estate commission? Recent updates have changed the way commissions are handled. Buyers must now agree to their agent’s fees in writing before visiting homes. Additionally, many markets no longer reflect agent compensation in MLS listings. Read more about Housing commission changes here.
How do the changes affect consumers in Louisiana? Buyers must now sign a commission agreement with their agent before starting a home tour. However, you can still ask the seller to pay your agent’s fee as part of your offer.
How do the changes affect Louisiana retailers? Sellers will continue to negotiate with their listing agent regarding the compensation offered to the buyer’s agent, if any. Sellers can review and negotiate terms based on requests from the buyer side.
How to find a real estate agent in Louisiana? IIf you’re looking to buy or sell a home, Redfin is here to help. Connect with a Redfin agent today.
How can you avoid fees? Selling a home without an agent in Louisiana (FSBO) saves on commission fees, but requires more effort from the seller, including managing marketing, showings, and paperwork.
*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.
Source link
