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 Massachusetts is 5.45%, which is less than the national average of 5.49%. Calculate your estimated commission in Massachusetts.
The average total real estate agent commission rate in Massachusetts is 5.45% of the final sale price. Based on the latest median home sale price in Massachusetts ($596,410), that translates to a total cost of roughly $32,504.
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 Massachusetts, the average listing agent fee is 3.10%, while the average buyer’s agent fee is 2.35%.
Real estate agent commissions make up a significant portion of the closing costs for Massachusetts home sellers. But you don't have to pay the full 5.45% to a traditional agent. If you're selling a home in Massachusetts, 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 39% on realtor fees, or about $12,525 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 Massachusetts
| Average listing commission | 3.10% |
| Average buyer's agent commission | 2.35% |
| Total average commission | 5.45% |
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 Massachusetts for listing agents is 3.10% of the final home price and 2.35% for buyer's agents, for a total of 5.45%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for Massachusetts
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Massachusetts. 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 Massachusetts?
When you sell a home in Massachusetts, 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 2.35% in Massachusetts.
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 Massachusetts
Commission rates are not set in stone. In fact, we found that while 3.10% is the average listing commission in Massachusetts, 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 | 2.00%– 2.50% |
| Total commission range | 4.00%– 6.50% |
» LEARN: What's the commission on a $1 million home?
Can I negotiate realtor commission in Massachusetts?
Real estate commission is always negotiable. In Massachusetts, the 10 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 | 90% |
| Homeowners with more than one property to sell | 90% |
| Seller’s situation (e.g. divorce or death in the family) | 60% |
| Higher property values | 60% |
| Homes expected to sell quickly | 60% |
| Periods of low housing inventory | 40% |
| Homeowners who are repeat clients | 40% |
| High competition for clients | 30% |
| High buyer demand in the area | 30% |
| Highly experienced home sellers | 30% |
| Houses in excellent condition | 20% |
Negotiating realtor fees in Massachusetts 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 Massachusetts housing market |
|
While your personal situation may vary, real estate conditions in Massachusetts 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 Massachusetts 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 Massachusetts real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 3.13 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for of their listing price | |
| Home values | Home values have risen 13.87% year over year | Seller's market |
» LEARN: See state-by-state average commission rates. How does your state compare?
Low commission real estate companies in Massachusetts
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: For homeowners in Massachusetts ready to sell and eager to retain more equity with less commission fees, Clever emerges as a top-notch choice.
✅ Benefits and features: Clever slashes the traditional real estate agent commission rates by up to half. Their agent-matching service comes with rave reviews and is risk-free, with absolutely no commitment required.
🏠 How it works: Clever pairs you with esteemed, local agents from well-known agencies like RE/MAX and Compass. This gives you the power to vet and select an agent who meets your specific needs while locking in a competitive 1.5% listing fee (on par with Redfin)—a benefit that stands no matter which agent you go with.
Pros
- Work with a high-caliber agent affiliated with a prestigious brokerage (this isn’t your bargain agency)
- Agents agree to a reduced listing fee of 1.5% through Clever
- Broad array of choices with access to over 140 of Massachusetts’ finest real estate professionals
Cons
- There is no surefire way to partner with a particular agent or firm that you may prefer
- Expect to pay additional fees for premium services like professional home staging, aerial drone photography, and interactive 3D tours (agents will clarify what’s incorporated and what’s extra in their sales pitch)
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Home sellers in Massachusetts seeking to cut costs on agent commissions while utilizing a recognized discount brokerage firm could find Redfin to be an advantageous option. Be mindful, though, that Redfin’s base commission fees are above the low end for regional competitors.
✅ Benefits and features: With a standard 1.5% listing fee, Redfin offers a cost-effective solution for your real estate transaction. For those both buying and selling with Redfin within a one-year timespan, there's an enticing perk of slashing the listing fee by an additional 0.5%. Moreover, Redfin is a well-known entity brandishing a robust suite of budget-friendly realtors across Massachusetts.
🚩 Potential red flags: Redfin harnesses a tech-centric, collective service model, which might not resonate with everyone. The bulk of transactions are coordinated through a combination of a Lead Agent and a dedicated support team working remotely. Clients looking for a bespoke, direct relationship with their agent might find this approach lacking. Also, Redfin has a minimum commission fee range of $4,000–6,000 in Massachusetts. So, depending on your home’s value and location, you may end up paying more than the advertised 1.5% fee.
Pros
- Redfin's 1.5% listing fee can offer significant savings for sellers
- Potential for further savings if you buy and sell with Redfin within a one-year interval
- Access to a wide array of experienced, budget-friendly realtors through a trusted, established brand
Cons
- The tech-driven, team-based approach may not align with those desiring a more traditional, personalized agent relationship
- Minimum commission fees mean you might pay more than 1.5% depending on your home’s valuation and position within Massachusetts
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Homeowners looking to sell in the Worcester area who are seeking an agent steeped in local expertise might find Purple Porch Properties an apt choice. Nevertheless, they should be aware that there's a relatively hefty baseline cost for their services when compared to other local options.
✅ Benefits and features: As a branch under the eXp Realty brand, Purple Porch Properties delivers a comprehensive full-service package. Prospective sellers can access a competitive 1.5% listing fee; this drops even further to 1% if the client elects to buy their next home through the same broker.
🚩 Potential red flags: The agency enforces a fixed minimum commission of $4,000 within the Worcester region. This flat rate means sellers with properties appraised below $266,000 will find themselves paying more than the standard 1.5% rate.
Pros
- Lower listing fee if you buy and sell with Purple Porch Properties
- Operates under an established brokerage (eXp Realty)
- If the buyer isn’t represented by a realtor, Purple Porch Properties manages both parties in the transaction for a 3% total commission
Cons
- Higher minimum listing fee compared to competitors
- Limited number of reviews
- Service availability is limited outside of Worcester County
» 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 Massachusetts'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
