How commission works | How to save on commission | The current Michigan housing market | The best low commission companies | Methodology
📊 The data: We surveyed local agents and found that the average real estate commission in Michigan is 5.98%, which is higher than the national average of 5.50%. |
That means, to sell an average Michigan house worth $203,500 you’ll pay about $12,200 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 5.98%.
Selling with a discount real estate company like Clever could help you save thousands on commission. Clever negotiates 1% listing fees with full-service Michigan realtors from top brokers.
On that same $203,500 home — you'd pay just $9,100, up to 25% less than paying average rates.
» SAVE: Sell with Clever for 1% listing fees and save thousands in commission!
Below, we cover everything you need to know about Michigan real estate commission fees and share tips on how to save more when you sell.
How real estate agent commission works in Michigan
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 Michigan has 49.9% of the commission going to the listing agent and 50.1% going to the buyer's agent.
» LEARN: How do real estate commissions work?
Who pays realtor fees in Michigan?
In Michigan, 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 Michigan
💰 Best ways to save on commission:
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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 Michigan
Whether you’re buying a renovated Detroit home, a hunting cabin in the Upper Peninsula, or an investment rental in Ann Arbor, you should always try to negotiate a lower commission rate — it could save you thousands!
Negotiating a lower realtor percentage 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 |
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The Michigan housing market |
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While your personal situation will obviously vary, Michigan 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 Michigan 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 Michigan real estate market
Factor | Trends | Indication |
|---|---|---|
Months of inventory | There's 1.2 months of housing inventory on the market | Seller's market |
Sale-to-list ratio | Homes are selling for 101.30% of their listing price | Seller's market |
Home values | Home values have risen 12.1% year over year | Seller's market |
Find a top realtor in Michigan
Ready to negotiate with an agent in your area? We looked at the data and found the top Michigan agents for you.
» FIND: The best Michigan realtors by city
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.
These are some of the top discount and flat-fee MLS services in Michigan.
The top discount real estate companies in Michigan
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 Michigan 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.
Clever Real Estate
Learn More💲 Listing Fee
$3,000 or 1%
💰 Avg. Savings
$7,375
⭐ Avg. Customer Rating
4.9/5 (1,004 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 April 2, 2021, Clever has a 4.9 out of 5 rating on Trustpilot, based on 974 reviews.
Clever has pre-negotiated low commission rates with top agents in all 50 states, Puerto Rico, and Washington, DC.
Redfin
Full Review💲 Listing Fee
1.5% (min. fees vary)
💰 Avg. Savings
$5,550
⭐ Avg. Customer Rating
3.2/5 (287 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 3.2 out of 5 rating (287 reviews) across popular review sites like Google and Yelp.
Redfin is available in 80+ U.S. markets (see all locations).
» LEARN: How do discount real estate brokers offer lower fees?
The top flat-fee MLS listing services in Michigan
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.
Flat Fee Pros
Flat Fee ProsBest For
Inexperienced sellers who need extra guidance
Price Range
$349-1,499
Pros:
- You'll get a yard sign and a key lock box with every listing package. Most companies make you pay extra for those.
- With every package except the Basic listing, you'll get a comparative market analysis to help you price your home.
Cons:
- You have to pay extra for contracts, addendums, and disclosures.
- The basic plan doesn't come with any phone or email support.
Kermath Realty
Kermath RealtyBest For
Experienced sellers looking for a simple MLS listing
Price Range
$299-998
Pros:
- All listings come with a color flyer than you print out for people at open houses or put in a flyer box on your yard sign.
- If you go with the Deluxe listing package, you'll get a key lock box and access to ShowingTime, a software agents use to coordinate showings.
Cons:
- You won't get any additional support from the broker unless you sign up for a full-service plan.
- They aren't clear if you can make changes to your listing after it's on the MLS.
» MORE: What you need to know about flat-fee MLS services.
Learn more
Like its Rust Belt neighbors, Michigan has had a rough few decades — but it’s on the rise. The economy is transitioning out of old-line industries like manufacturing and into more vibrant areas like business services and education, and the state’s no longer losing population. New arrivals are quick to note that the state has an affordable cost of living and abundant natural beauty — Michigan borders four of the Great Lakes.
After decades of stagnation, Michigan's housing market is hot again. Median home values in the state have more than doubled over the last decade, led by Detroit’s resurgence. That being said, there’s not as much inventory as you might expect in a state that’s getting back on its feet. This is a market with room to grow, especially considering that median home values are still well below the national average. The upshot? Michigan offers a great opportunity for investors and buyers alike.
If you want to save thousands of dollars of commission on your Michigan home sale, Clever pre-negotiates a low 1% commission rate, or a flat fee of $3,000 if your home sells for less than $350,000, and the company only works with top agents in Michigan. Contact Clever today to get started on your commission savings!
Methodology
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 May 2021
- Sale prices and sale-to-list ratios: Based on Redfin data as of April 2021 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of June 2021