📊 The data: We surveyed local agents and found that the average real estate commission in Iowa is 5.90%, which is higher than the national average of 5.49%.
That means, to sell an average Iowa house worth $187,700 you’ll pay about $11,100 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 5.90%.
Selling with a discount real estate company like Clever could help you save thousands on commission. Clever negotiates 1% listing fees with full-service Iowa realtors from top brokers.
On that same $187,700 home — you'd pay just $8,300, up to 25% less than paying average rates.
Below, we cover everything you need to know about Iowa real estate commission fees and share tips on how to save more when you sell.
How real estate agent commission works in Iowa
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
Both agents earn a percentage of the home's final price when the sale closes. This payment is called real estate agent commission, and it's baked into the sale price when you sell your home.
Based on our research, the average commission split in Iowa has 52.5% of the commission going to the listing agent and 47.5% going to the buyer's agent.
» 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.
However, since this commission is baked into the sales price, you could say that the home buyer is paying — at least in part — through a higher price.
» LEARN: Who pays realtor commission?
How to save on real estate commission in Iowa
💰 Best ways to save on commission:
Keep reading to learn how you can negotiate cheaper rates or find low commission companies that negotiate lower realtor fees for you!
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.
You may have an easier time negotiating low rates if...
The Iowa housing market
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.
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
Months of inventory
There's 0.8 months of housing inventory on the market
Homes are selling for 98.87% of their listing price
Home values have risen 18.64% year over year
Find a top realtor in Iowa
Ready to negotiate with an agent in your area? We looked at the data and found the top Iowa agents for you.
» FIND: The best Iowa realtors by city
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. Like traditional agents, these agents are fully licensed and have met all of the requirements of the Iowa real estate commission board.
How they create those discounts will depend on the company's model, with some creating more risks and tradeoffs than others.
💲 Listing Fee
$3,000 or 1%
💰 Avg. Savings
⭐ Avg. Customer Rating
4.9/5 (1,512 reviews)
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.
- Free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX
- Provides multiple agent matches so you can interview, compare marketing plans, and choose the best fit
- Pre-negotiates low rates on your behalf — you get full service for a flat $3,000 listing fee, or just 1% if the home sells for more than $350,000
- If you buy with Clever, you could get a check worth up to 0.5% of the home price
- 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
As of March 11, 2022, Clever has a 4.9 out of 5 rating on Trustpilot, based on 1,512 reviews.
Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.
💲 Listing Fee
1.5% (min. fees vary)
💰 Avg. Savings
⭐ Avg. Customer Rating
3.9/5 (416 reviews)
Redfin offers real savings and a proven brand. But sellers could compromise on service — especially agent experience and availability.
- 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 3.9 out of 5 rating (416 reviews) across popular review sites like Google and Yelp.
Redfin is available in 80+ U.S. markets (see all locations).
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 $100-300. The trade-off is that you'll have to handle almost the entire home-selling process yourself. If you're a real estate novice, or simply don't have the time to sell your home without a realtor, this might not be a good option.
Budget-conscious sellers who need a simple, affordable listing
- 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.
- 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.
Experienced investors who need only a basic MLS listing
- 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.
- 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.
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%, or $3,000, with some of Iowa’s top real estate agents. Contact Clever today to find out how much you can save!
Our data on commission rates is based on a survey of 915 of our partner agents, in which we asked for typical rates for both buyer's and seller's agents in their area.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of April 2022
- Sale prices and sale-to-list ratios: Based on Redfin data as of December 2021 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of March 2022