What's The Average Iowa Real Estate Commission?

Bailey Peterson

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Bailey Peterson

June 1st, 2023
Updated June 1st, 2023

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How commission works | Save on commission | Iowa housing market | Best low commission companies | Methodology

📊 The data:

We surveyed local agents and found that the average real estate commission in Iowa is 5.66%, which is higher than the national average of 5.37%.

To sell a house in Iowa worth $200,038 — the median home value in Iowa — you’ll pay about $11,322 in realtor fees.

Realtor commission is usually the largest cost you'll face when selling your home — but you don't have to pay the full 5.66%.

Clever Real Estate could help you save thousands on commission by pre-negotiating 1.5% listing fees with full-service Iowa realtors from top brokerages.

On that same $200,038 home — you'd pay just $8,400, up to 26% less than paying average rates.

» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!

How real estate agent commission works

Average listing commission
2.96%
Average buyer's agent commission
2.70%
Total average commission
5.66%

There are usually two real estate agents involved in a home sale:

  • The seller's agent (also called the listing agent), who represents the home seller
  • The buyer's agent, who represents the person buying the home

Based on our research, the average commission rate for listing agents is 2.96% of the final home price and 2.70% for buyer's agents, for a total of 5.66%.

» LEARN: How do real estate commissions work?

Who pays realtor fees in Iowa?

In Iowa, home sellers pay real estate commission fees out of the final sale proceeds for both agents involved in a deal. Offering to pay for the buyer's agent's commission is an incentive for agents to show your home to their clients.

If you'd like to save on commissions, Clever can connect you with a top listing agent in your area. You'll pay just 1.5% (or $3,000), keeping more money in your pocket at the end of your sale.

💰 Get a lower rate with a top Iowa agent!

Want to find a top local agent in Iowa without overpaying on realtor fees? Clever negotiates 1.5% listing fees with top-rated Iowa real estate agents from trusted brokerages like Keller Williams, RE/MAX, and Berkshire Hathaway.

Get guaranteed full service for a fraction of the 2.96% rate Iowa agents typically charge. Schedule a free, no obligation consultation with a top local agent today!

How to save on realtor fees in Iowa

Commission rates are not set in stone. In fact, we found that while 5.66% is the average in Iowa, rates typically fall between 4.54% and 6.80%. You can save money by negotiating a lower rate with your listing agent or by working with brokerage that has a discounted commission model.

Listing commission range
2.40%– 3.53%
Buyer's agent commission
2.14%– 3.27%
Total commission range
4.54%– 6.80%

Tips for negotiating realtor commission in Iowa

Whether you’re selling a condo in Des Moines’ revitalized downtown, an investment rental in Iowa City, or a family farm near Mason City, you can almost always save thousands of dollars by negotiating a lower rate on your commission.

Negotiating a lower realtor percentage in Iowa depends on two main factors: your situation and the housing market.

Factor
You may have an easier time negotiating low rates if...
Your situation
  • You're selling a high-value home
  • You have a personal relationship with a realtor
  • You can offer a realtor repeat business
The Iowa housing market
  • Homes are selling quickly
  • There are relatively few homes listed for sale
  • Home values are rising

While your personal situation will obviously vary, Iowa real estate market conditions will affect all home sellers in your area.

In general, in a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more willing to lower their commission rates. The opposite is usually true in a buyer's market.

» LEARN: Find our top tips for negotiating lower commission fees

To judge the current state of your real estate market, look at these three factors:

  • Months of inventory
  • Sale to list price
  • Home value trends

If every factor points to Iowa being a seller's market, then you may be in a good position to negotiate a lower commission rate with your agent. If market conditions are mixed or favor buyers, it may be more challenging to persuade your realtor to accept a cheaper fee.

The current state of the Iowa real estate market

Factor
Trends
Indication
Months of inventory
There's 1.5 months of housing inventory on the market
Seller's market
Sale-to-list ratio
Homes are selling for 97.01% of their listing price
Buyer's market
Home values
Home values have risen 27.72% year over year
Seller's market

Low commission real estate companies in Iowa

Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.

These are some of the top discount and flat-fee MLS services in Iowa.

The top discount real estate companies in Iowa

Discount real estate companies typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.

Clever Real Estate

Clever Real Estate

Get Started

💲 Listing Fee

1.5% (min. $3,000)

💰 Avg. Savings

$5,625

⭐ Avg. Customer Rating

4.9/5 (1,995 reviews)

✍️ Editor's Take
Pros
Cons
Reviews
Locations

Clever is a quick, easy, and free way to find a top-rated local agent. And, unlike many similar companies, Clever pre-negotiates big discounts on your behalf, so you can save thousands without sacrificing on service.


Try Clever for free — save thousands on commission

  • Clever offers a free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX.
  • You get multiple agent matches so you can interview, compare marketing plans, and choose the best fit.
  • Clever pre-negotiates low rates on your behalf — you get full service for a low 1.5% listing fee.
  • If you buy with Clever, you could get cash back after closing.
  • You may not get matched with an agent from your preferred real estate brokerage.
  • Agents may not provide premium services like drone photography and professional home staging.

Clever has a 4.9 out of 5 rating on Trustpilot, based on 1,844 reviews.


Read reviews from real Clever customers here.

Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.

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💲 Listing Fee

1.5% (min. fees vary)

💰 Avg. Savings

$5,550

⭐ Avg. Customer Rating

3.7/5 (301 reviews)

✍️ Editor's Take
Pros
Cons
Reviews
Locations

Redfin offers real savings and is a proven brand. But sellers could compromise on service — especially agent experience and availability.


Read the full Redfin review.

  • If you buy and sell with Redfin, you'll get a 0.5% listing fee discount.
  • Redfin gives its listings premium placement in its popular home search app.
  • If finding the right agent is a top priority, you'll have limited options Redfin only has a few agents in each of its markets.
  • Redfin agents handle more customers at once than the average realtor, so they may not be able to provide as much personalized service.

Redfin has a 3.7 out of 5 rating (301 reviews) across popular review sites like Google and Yelp.


Read reviews from real Redfin customers here.

Redfin is available in 80+ U.S. markets (see all locations).

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» LEARN: How do discount real estate brokers offer lower fees?

The top flat fee MLS listing services in Iowa

Flat fee MLS services list your home on your local MLS for a low fee, often around $100–$500. The trade-off is that you'll have to handle almost the entire home-selling process yourself.

Flat Fee Realty Iowa

Flat Fee Realty Iowa

Flat Fee Realty

Best For

Budget-conscious sellers who need a simple, affordable listing

Price Range

$199

Pros & Cons

Pros:

  • Your listing comes with all the state seller's disclosures that you'll need.
  • You can pay a little more to post up to 25 photos on the MLS instead of the standard six.

Cons:

  • Flat Fee Realty doesn't offer any pricing or contract assistance.
  • The company won't be your listing broker. Instead, they'll refer you to a Idaho-based broker who will list your property. If you have problems or questions, you'll end up talking to two companies instead of just one.
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Flat Fee Group Iowa

Flat Fee Group Iowa

Flat Fee Group

Best For

Experienced investors who need only a basic MLS listing

Price Range

$499-1395

Pros & Cons

Pros:

  • You can set up a free FSBO web page along with your MLS listing.
  • It's easy to switch to a full-service agent if you decide FSBO isn't for you.

Cons:

  • This broker offers only one flat-fee MLS package. However, the company offers a higher-priced full-service option if you want help with facilitating your sale.
  • The company's flat-fee MLS option allows fewer photos and changes to your listing.
  • The flat-fee MLS service is good for a shorter listing duration than usual (three months) and boasts a higher price than many other options.
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» MORE: What you need to know about flat fee MLS services.

Learn more

Iowa has a reputation as a wholesome, Norman Rockwell-esque state, and that reputation is definitely deserved. But even beyond the unusual friendliness of Iowans, the state offers excellent affordability, a great job market, and a strong economy led by an unmatched agriculture industry.

Home values in Iowa have risen steadily over the past decade, but are still only around half of the national average. That means the state offers incredible value, especially for novice investors or first-time homebuyers.

More seasoned investors might want to look at larger markets in college towns like Iowa City and Ames, or even Des Moines, which has recently made appearances on many lists of up-and-coming cities.

If you’re interested in saving thousands on real estate commission when you sell, Clever has already pre-negotiated low listing rates of only 1.5%, or $3,000, with some of Iowa’s top real estate agents. Contact Clever today to find out how much you can save!

👋 Next Steps: Find an agent!

Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).

You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.

Ready to learn more? Click below to take our simple quiz and see your agent matches!

Methodology

We gathered our commission rate data from a survey of 630 of our partner agents. The survey asked about standard local rates for both listing and buying agents.

Additionally, we utilized the following data from Zillow and Realtor.com:

  • Home values, list prices, and sale prices: Based on Zillow data as of March 2023
  • Sale prices and sale-to-list ratios: Based on Redfin data as of February 2023 (unless specified otherwise)
  • Months of inventory: Based on Realtor.com data as of February 2023

Additional resources for Iowa home sellers

Better real estate agents at a better rate

Enter your zip code to see if Clever has a partner agent in your area.

If you don't love your Clever partner agent, you can request to meet with another, or shake hands and go a different direction. We offer this because we're confident you're going to love working with a Clever Partner Agent.