When purchasing or selling a home in Maryland, understanding real estate commissions is crucial for budgeting and negotiation. The recent changes in 2024 have brought greater transparency to how these commissions are handled, benefiting both buyers and sellers. These updates aim to make the process more transparent, aiding individuals in making well-informed decisions regarding real estate fees.
Whether you’re a first-time buyer or an experienced seller, this guide from Redfin will provide insights into Maryland’s real estate commissions and what to expect in today’s market.
Current State of the Maryland Housing Market
Before delving into Maryland’s real estate commissions, let’s take a glance at the state’s housing market.
| Median Home Sale Price | $436,100 |
| Housing Supply | 17,866 (+10% YoY) |
| Homes Sold Above List Price | 41.9% (-3.8 pts YoY) |
Understanding Real Estate Commissions in Maryland
What are real estate commissions?
Real estate commissions are the fees paid to agents by buyers or sellers for their assistance in completing a property transaction successfully. These fees are usually a percentage of the home’s sale price and are paid upon closing the deal.
Who pays the commission?
Traditionally, sellers have been responsible for covering their agent’s commission as well as the buyer’s agent’s fees from the sale proceeds. However, as of August 17, 2024, buyers must agree to their agent’s fee in writing before starting home tours.
While buyers can still negotiate with the seller to cover their agent’s commission, this change allows for varying amounts that sellers may contribute towards the buyer’s agent commission, making it completely negotiable.
Average Real Estate Commission Rates in Maryland
In Maryland, commission rates for real estate transactions can vary based on specific circumstances and agreements between parties. While there are common expectations for commission percentages, these fees are negotiable, allowing buyers and sellers to collaborate with agents to find a suitable structure.
Various factors, such as location, market trends, and agent services, can influence the final commission rate. This flexibility enables parties to negotiate and adjust fees according to their budget and objectives. Below is a breakdown of sample commission rates based on median home prices in some major cities in Maryland.
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| 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 aim to offer excellent value to our clients. This is why we provide sellers with a listing fee as low as 1%.* For buyers, our fees are competitive, tailored to the location, to help your offer stand out and improve your chances of securing your desired home.
Negotiating Real Estate Commissions in Maryland
Absolutely! There are no set federal or state laws on commission rates in the U.S., allowing agents to negotiate lower fees. The flexibility in commission rates depends on the transaction type, service level, and client-agent relationship.
When discussing commission rates with an agent, consider factors such as service quality, marketing strategies, and experience in Maryland’s real estate market. Sellers of highly desirable properties may have room to negotiate lower commissions. In cases of dual agency, where one agent represents both buyer and seller, further discounts may be possible.
Tips for Successful Negotiation
- Shop around: Compare different agents and their commission offers before making a decision.
- Consider performance-based agreements: Negotiate higher commissions for quicker sales or better offers.
- Leverage your property’s appeal: Agents may be willing to reduce fees for properties in sought-after locations.
Maryland Real Estate Commission FAQs
What are the changes to real estate commission? There are two significant updates to commission practices. First, buyers must agree to their agent’s commission in writing before starting home tours. Second, agent compensation is no longer displayed on MLS listings in many markets. Learn more about the real estate commission changes here.
How do the changes impact buyers in Maryland? Buyers must now sign a formal agreement outlining their agent’s commission rate before touring homes. However, buyers can still request that the seller covers their agent’s commission as part of their offer.
How do the changes impact sellers in Maryland? Sellers will negotiate with their listing agent regarding compensation offered to the buyer’s agent. Sellers can review and adjust any commission requests during the offer process.
How do you 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 extra responsibilities of marketing, scheduling showings, and handling paperwork. FSBO (For Sale by Owner) transactions require more involvement but eliminate agent fees.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.