How commission works | Commission calculator | Best ways to save | Methodology
📊 The data:
Our December 2023 survey of local agents found that the average real estate commission in Maryland is 5.34%, which is less than the national average of 5.49%. Calculate your estimated commission in Maryland.
The average total real estate agent commission rate in Maryland is 5.34% of the final sale price. Based on the latest median home sale price in Maryland ($406,843), that translates to a total cost of roughly $21,725.
Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Maryland, the average listing agent fee is 2.76%, while the average buyer’s agent fee is 2.58%.
Real estate agent commissions make up a significant portion of the closing costs for Maryland home sellers. But you don't have to pay the full 5.34% to a traditional agent. If you're selling a home in Maryland, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 33% on realtor fees, or about $7,160 on average.
⚡ Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.
How real estate commission works in Maryland
| Average listing commission | 2.76% |
| Average buyer's agent commission | 2.58% |
| Total average commission | 5.34% |
There are usually two real estate agents involved in the real estate transactions of 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 real estate commission paid in Maryland for listing agents is 2.76% of the final home price and 2.58% for buyer's agents, for a total of 5.34%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for Maryland
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Maryland. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
If you want to decrease your realtor fees, Clever can connect you with a top local listing agent charging just 1.5% commission. This will allow you to retain more of the sale proceeds for yourself.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Who pays realtor fees in Maryland?
When you sell a home in Maryland, the sales commissions for both the seller's and buyer's real estate agents are subtracted from the final sale price. These fees do not need to be paid upfront.
The seller's agent earns their commission by supplying services like market analysis and managing the closing paperwork. The buyer's agent makes their commission by bringing a qualified buyer who meets the purchase terms and closes on time.
The seller does not pay these commissions out of their own money. Like closing costs, the agents' fees are taken out of the sale proceeds once the sale is finished.
Why do sellers pay the buyer's real estate agent commission?
Offering to cover the buyer's agent commission may draw in more potential buyers for your listing.
Paying this fee makes your home more enticing to buyers, since they won't have to pay their agent's commission upfront on top of the down payment and closing costs - something many buyers cannot afford.
When you make a competitive offer on the buyer's agent commission, real estate agents become more inclined to show your property to their clients. This can increase your odds of getting multiple offers. Experts suggest advertising a buyer's agent commission within 0.5% of the local norm, which is 2.58% in Maryland.
Will the NAR lawsuit change how real estate commission works?
On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023.
While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need.
The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.
» READ MORE:
How to save on realtor fees in Maryland
Commission rates are not set in stone. In fact, we found that while 2.76% is the average listing commission in Maryland, rates typically fall between 2.00% and 4.00%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 2.00%– 4.00% |
| Buyer's agent commission | 2.50%– 4.00% |
| Total commission range | 4.50%– 8.00% |
» LEARN: What's the commission on a $1 million home?
Can I negotiate realtor commission in Maryland?
Real estate commission is always negotiable. In Maryland, the 24 agents we surveyed said these were their most common reasons for agreeing to lower their commission.
| Would you lower your commission for…? | Agents who answered yes |
|---|---|
| Homeowners who also plan to buy with you | 67% |
| Homeowners who are repeat clients | 67% |
| Homeowners with more than one property to sell | 58% |
| Seller’s situation (e.g. divorce or death in the family) | 50% |
| Higher property values | 42% |
| High competition for clients | 37% |
| Homes expected to sell quickly | 33% |
| Periods of low housing inventory | 33% |
| High buyer demand in the area | 29% |
| Houses in excellent condition | 25% |
| Highly experienced home sellers | 4% |
Negotiating realtor fees in Maryland depends on two main factors: your situation and the housing market.
| Factor | You may have an easier time negotiating low rates if... |
|---|---|
| Your situation |
|
| The Maryland housing market |
|
While your personal situation may vary, real estate conditions in Maryland will impact all home sellers in the area.
Generally in a seller's market, where sellers have more leverage than buyers, listing agents' jobs are easier so they may be more open to reducing commissions. The opposite is often true in a buyer's market.
Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.
To assess the current state of your local real estate market, look at these three factors:
- Months of inventory
- Sale to list price ratio
- Home value trends
If all signs point to Maryland being a seller's market, you may be in a good position to negotiate a lower commission with your agent. If conditions are mixed or favor buyers, it may be harder to get your agent to accept a cheaper rate.
The current state of the Maryland real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 0.93 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 100.00% of their listing price | Seller's market |
| Home values | Home values have risen 11.76% year over year | Neutral market |
» LEARN: See state-by-state average commission rates. How does your state compare?
Low commission real estate companies in Maryland
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.
Discount real estate brokers 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.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Home sellers in Maryland seeking to cut costs on realtor commissions while still receiving full-service support will find Clever to be a top choice.
✅ Benefits and features: Clever slashes the standard commission rates by up to 50%, offering a substantial discount. The service's agent matching process is renowned and comes at no cost, with no strings attached.
🏠 How it works: Clever links sellers with exceptional local agents from well-known realty firms, such as RE/MAX and Compass, enabling you to evaluate your options to secure the best match. All this comes with the perk of a special 1.5% listing fee, which aligns with Redfin's rate and applies to any agent you choose.
Pros
- Partner with premier agents from respected, mainstream brokerages, avoiding lesser-known discount agents.
- Agents offer services with up to a 50% commission reduction via Clever.
- The most extensive selection of top-rated agents in Maryland, allowing you to choose from the best in the market.
Cons
- There’s no guarantee that you’ll be able to work with your preferred agent or brokerage
- Additional services such as professional staging, drone photos, and 3D tours may come with additional costs (agents will provide a comprehensive breakdown of what’s included during their listing presentation)
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Homeowners in Maryland contemplating a cost-effective sales process with a reputable discount brokerage will find Redfin to be a compelling choice. Be mindful that their minimum commission fees are marginally steeper compared to other local alternatives.
✅ Benefits and features: Redfin's 1.5% listing fee presents a notable cost-saving opportunity, which can be especially advantageous for those aiming to buy and sell within a single year due to an extra 0.5% discount.
Selecting Redfin means aligning with a recognized and esteemed brand, offering access to an extensive selection of experienced, discount real estate professionals.
🚩 Potential red flags: Adopting a tech-savvy, team-based service model, your primary contact at Redfin will be a Lead Agent, with additional support provided by a specialized team. This more detached configuration may not resonate with clients seeking highly individualized engagement with their agent. Also, Redfin has a minimum commission fee of $4,000 in Maryland. If your home’s value is less than $267,000, you may end up paying more than the advertised 1.5% rate.
Pros
- Significant savings on listing fees
- Established brand with a strong lineup of agents
- Remote, team-based approach can benefit certain sellers
Cons
- Not ideal for individuals seeking a personalized agent experience
- Limited agent selection compared to Clever
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: For Maryland residents navigating the complexities of real estate transactions, CapCenter provides an appealing blend of cost efficiency and dependable service as they team up with eXp Realty.
✅ Benefits and features: CapCenter distinguishes itself by offering an affordable solution for both buyers and sellers in the Maryland real estate market. While focusing solely on selling, their lean 1.5% listing fee (subject to a $3,000 minimum) aligns with industry disruptors like Redfin and Clever. The abundance of affirmative client feedback underlines their commitment to delivering high-caliber services with widespread satisfaction among patrons.
🚩 Potential red flags: CapCenter entices clients with potential savings, particularly attractive to those engaged in both buying and selling. Noteworthy customer testimonials back up CapCenter's reputation for excellence. Their competitive fee structure remains an advantage, whether or not a property purchase is on the horizon.
Pros
- Enables considerable cost savings when using CapCenter for both purchasing and listing properties
- Favorable client testimonials underscore CapCenter's credibility
- Fee competitiveness is a strong selling point even without the intention to purchase a new home
Cons
- Optimal savings are contingent on leveraging CapCenter for both selling and buying services
- Selection of agents is more modest relative to broader-scale discount real estate brands available in Maryland
- Service area coverage might be variable, with potential constraints in specific Maryland locations
» LEARN: How do discount real estate brokers offer lower fees?
Next steps
Thinking of selling your home but don't know where to start? Here are some next steps.
Start interviewing local agents
Set up some listing appointments, where an agent visits your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.
Here's why it's smart to sit down with a few agents before signing with one:
It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business, and will try to sell you on their service.
You can compare pricing and features: Shopping around helps you find the best fit for your specific needs – in terms of fees, experience, and services provided.
Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.
To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).
Clever has pre-negotiated low commission rates of only 1.5%, with Maryland's top agents. Contact Clever today to find out how much you can save on commission!
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. We also asked agents about when and why they're willing to negotiate real estate commissions.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of February 2024
- Sale-to-list ratios: Based on Zillow data as of February 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of March 2024
