Average Real Estate Commission in Michigan

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By Jon Stubbs Updated December 1, 2023

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📊 The data:


We surveyed local agents and found that the average real estate commission in Michigan is 5.65%, which is higher than the national average of 5.37%. Calculate your estimated commission in Michigan.

The average total real estate agent commission rate in Michigan is 5.65% of the final sale price. Based on the latest median home sale price in Michigan ($236,114), that translates to a total cost of roughly $13,340.

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 Michigan, the average listing agent fee is 2.77%, while the average buyer’s agent fee is 2.88%.

Real estate agent commissions make up a significant portion of the closing costs for Michigan home sellers. But you don't have to pay the full 5.65% to a traditional agent. If you're selling a home in Michigan, 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 27% on realtor fees, or about $3,540 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.

» Jump to: Commission calculator | Best ways to save | Discount real estate brokers | Methodology

How real estate commission works in Michigan

Average listing commission 2.77%
Average buyer's agent commission 2.88%
Total average commission 5.65%
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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 Michigan for listing agents is 2.77% of the final home price and 2.88% for buyer's agents, for a total of 5.65%.

» LEARN: How do real estate broker commissions work?

Real estate commission calculator for Michigan

Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Michigan. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.

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

Who pays realtor fees in Michigan?

When selling a home in Michigan, the real estate agent fees for both the seller's and buyer's representatives are deducted from the final sales revenue. You don't need to prepay these costs.  

The seller's agent earns their fee by providing services such as market analysis and handling the closing paperwork. The buyer's agent earns their fee by bringing a qualified purchaser who meets the contract terms and completes the sale on time.

You don't have to pay these fees out of pocket. Similar to closing costs, the real estate agent fees are subtracted from the sale proceeds when the home purchase is finalized.   

Why do sellers pay the buyer's real estate agent commission?

Offering to cover the buyer's agent fee can likely appeal to more potential homebuyers.

Taking on this cost makes your home more appealing to buyers, who otherwise would need to pay their agent's fee upfront plus the down payment and closing charges. Many buyers can't afford these extra initial costs.

When you make a competitive offer for the buyer's agent fee, real estate agents are more motivated to showcase your home to their clients. This boosts your chances of getting multiple bids. Real estate professionals recommend advertising a buyer's agent fee within 0.5% of the local norm, which is 2.88% in Michigan.

Will the NAR lawsuit change how real estate commission works?

A November 2023 lawsuit found the National Association of Realtors (NAR), Homeservices of America, and Keller Williams Realty guilty of misleading sellers into paying high realtor fees.     

The judge agreed with the plaintiffs that sellers should not be on the hook for the buyer's agent commission. It's too early to tell if this decision will change how buyer's agents are paid. We're monitoring the appeal in this case as well as other lawsuits and will keep you updated. 

» READ MORE:

How to save on realtor fees in Michigan

Commission rates are not set in stone. In fact, we found that while 2.77% is the average in Michigan, rates typically fall between 4.93% and 6.36%. 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 2.41%– 3.13%
Buyer's agent commission 2.52%– 3.23%
Total commission range 4.93%– 6.36%
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Can I negotiate realtor commission in Michigan?

Real estate commission is always negotiable. In Michigan, the 13 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 are repeat clients 69%
Homeowners who also plan to buy with you 69%
Higher property values 69%
Homeowners with more than one property to sell 62%
Seller’s situation (e.g. divorce or death in the family) 46%
High competition for clients 38%
Periods of low housing inventory 31%
Homes expected to sell quickly 31%
High buyer demand in the area 23%
Houses in excellent condition 23%
Highly experienced home sellers 15%
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Negotiating realtor fees in Michigan 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 Michigan housing market
  • Homes are selling quickly
  • There are relatively few homes listed for sale
  • Home values are rising
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While your personal circumstances may vary, real estate conditions in Michigan will impact all home sellers in the area.  

Generally in a seller's market, where home sellers have more leverage than buyers, listing agents' jobs are simpler so they may be more open to reducing their fees. 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, examine these three factors:

  • Months of inventory
  • Sale to list price ratio 
  • Home value movements  

If all factors indicate Michigan is a seller's market, you may be in a good position to negotiate a lower rate with your agent. If market conditions are mixed or favor buyers, it may be tougher to get your realtor to accept a cheaper commission.

The current state of the Michigan real estate market

Factor Trends Indication
Months of inventory There's 2.1 months of housing inventory on the market Seller's market
Sale-to-list ratio Homes are selling for 97.67% of their listing price Buyer's market
Home values Home values have risen 31.58% year over year Seller's market
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Low commission real estate companies in Michigan 

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.

Best for most sellers

Clever Real Estate

Learn More
4.9
Excellent

Listing Fee

1.5% ($3,000 min.)

Availability

Nationwide

Customer Rating

5.0 (2,627)

Overview

Pricing

Reviews

Contact

Overview: If you’re a homeowner in Michigan looking to sell your property and save on realtor commission, Clever is a great option.

✅ Benefits and features: Clever lets you to work with top-notch, traditional realtors at discounted rates of up to 50%. Its matching service is highly reputable and completely free with no obligations.

🏠 How it works: Clever connects you with highly-rated local realtors from well-known brokerages like RE/MAX and Compass. You have the freedom to compare different options and choose the realtor that best suits your needs, all while enjoying an exclusive 1.5% listing fee (same as Redfin) regardless of your choice of realtor.

Pros

  • Work with a traditional realtor from a recognized brokerage (not a discount agent)
  • Discounted rates of up to 50% compared to regular rates through Clever
  • Wide range of agent options with hundreds of top-rated realtors available in Michigan

Cons

  • No guarantee you’ll be able to work with a specific agent or brokerage you have in mind
  • Add-ons like professional staging, drone photos, and 3D tours may cost extra (agents will break down what’s included during their listing presentation)

Fee structure

  • 1.5% listing commission ($3,000 min.) paid at closing
  • 2–3% buyer’s agent commission paid at closing
Weighted avg. 5.0 2,627
Trustpilot 5.0 2,402
Google 4.8 225

Website: listwithclever.com
Phone: 1-833-225-3837
Hours: 8 a.m.–10 p.m. EST, 7 days a week
Address: 6358 Delmar Blvd, Suite 300, St. Louis, MO 63130

Get started with Clever today!

Redfin Michigan

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4.7
Very good

Listing Fee

1.5% ($2,000–3,500 min.)

Availability

Multi-state

Customer Rating

N/A*

Overview

Pricing

Reviews

Contact

Overview: If you’re a homeowner in Michigan looking to sell and buy in Michgian for discounted commission, Redfin is a solid choice.

✅ Benefits and features: Redfin stands out with its 1.5% listing fees, providing substantial savings for home sellers. Additionally, if you use Redfin for both selling and buying within a year, you can enjoy an extra 0.5% reduction in your listing fee. Redfin is an established brand that offers a wider selection of discount realtors compared to other discount real estate brokers in Michigan.

🚩 Potential red flags: Redfin’s technology-driven and team-based approach may not suit everyone’s preferences. The majority of the process is conducted remotely, and you’ll work with a Lead Agent and a back-office team. It’s important to note that Redfin has a minimum commission fee of $2,000–3,500 in Michigan. So, depending on the home’s sale price, you could pay more than the 1.5% advertised rate.

Pros

  • Solid listing fee savings
  • Established brand and decent agent selection
  • Appealing, technology-driven approach for sellers who prefer it

Cons

  • High-volume, team-centric approach may not be for everyone
  • Less agent selection than Clever

Fee structure

  • 1.5% listing fee ($2,000–3,500 min. in Michigan) at closing
  • 2–3% buyer’s agent commission at closing
  • 0.5% listing fee refund if you also buy with Redfin within 12 months

*Not enough available data at this time

Website: redfin.com
Phone: 1-844-759-7732
Hours: 8 a.m.–5 p.m. EST, 7 days a week
Address: 39555 Orchard Hill Pl, Suite 600, Novi, MI 48375.
Areas served: Ann Arbor, Dearborn, Detroit, Grand Rapids, Lansing, Livonia, Sterling Heights, Trenton, Troy, Warren, and more.

Assist-2-Sell

Learn More
3.5
Fair

Listing Fee

Unclear

Availability

Multi-state

Customer Rating

4.6 (76)

Overview

Pricing

Reviews

Contact

Our take: If you’re a home seller in Michigan looking for a discount real estate option, Assist-2-Sell may be a good fit for you. With its multi-state presence and positive customer reviews, this company can sell your home for lower listing fees.

✅ Benefits and features: Assist-2-Sell provides a full-service experience at lower commission rates compared to traditional brokerages. It has a strong reputation and a wide network of agents to choose from.

🚩 Potential red flags: It’s important to note that its pricing structure and services can vary by location. Make sure to contact a local agent to get a clear understanding of its fees and services before making a decision.

Pros

  • Lower commission rates compared to traditional brokerages
  • Full-service experience with a wide network of agents
  • Strong reputation and positive customer reviews

Cons

  • Pricing and services can vary by location
  • The lack of transparency in service details from Assist-2-Sell can make it challenging to fully understand what to expect when working with this broker

Fee structure

  • Reach out to Assist-2-Sell directly to get a clear understanding of its services and pricing in Michigan
Weighted avg. 4.6 76
Google 4.6 76

*Google reviews are comprehensive of all Assist-2-Sell locations.

Website: assist2sell.com
Phone: 616-928-2281
Address: 6333 Apio Cir, Hudsonville, MI 49426

» 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 Michigan's top agents. Contact Clever today to find out how much you can save on commission!

👋 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 623 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 August 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 Michigan home sellers

Better real estate agents at a better rate

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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.