How commission works | Save on commission | Michigan housing market | Best low commission companies | Methodology
📊 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%.
To sell a house in Michigan worth $218,684 — the median home value in Michigan — you’ll pay about $12,356 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 5.65%.
Clever Real Estate could help you save thousands on commission by pre-negotiating 1.5% listing fees with full-service Michigan realtors from top brokerages.
On that same $218,684 home — you'd pay just $9,300, up to 25% less than paying average rates.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
How real estate agent commission works
Average listing commission | 2.77% |
Average buyer's agent commission | 2.88% |
Total average commission | 5.65% |
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
Based on our research, the average commission rate 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 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. Offering to pay for the buyer's agent's commission is an incentive for agents to show your home to their clients.
If you'd like to save on commissions, Clever can connect you with a top listing agent in your area. You'll pay just 1.5% (or $3,000 if your home sells for less than $350,000), keeping more money in your pocket at the end of your sale.
How to save on realtor fees in Michigan
Commission rates are not set in stone. In fact, we found that while 5.65% 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 brokerage that has a discounted commission model.
Listing commission range | 2.41%– 3.13% |
Buyer's agent commission | 2.52%– 3.23% |
Total commission range | 4.93%– 6.36% |
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 |
|
The Michigan housing market |
|
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 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 31.65% year over year | Seller's market |
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. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Clever Real Estate
Get Started💲 Listing Fee
1.5% (min. $3,000)
💰 Avg. Savings
$5,625
⭐ Avg. Customer Rating
4.9/5 (1,995 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.
- Clever offers a free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX.
- You get multiple agent matches so you can interview, compare marketing plans, and choose the best fit.
- Clever pre-negotiates low rates on your behalf — you get full service for a low 1.5% listing fee.
- If you buy with Clever, you could get cash back after closing.
- 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.
Clever has a 4.9 out of 5 rating on Trustpilot, based on 1,844 reviews.
Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.
Redfin
Full Review💲 Listing Fee
1.5% (min. fees vary)
💰 Avg. Savings
$5,550
⭐ Avg. Customer Rating
3.7/5 (301 reviews)
Redfin offers real savings and is 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 3.7 out of 5 rating (301 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 $300–$1,000. The trade-off is that you'll have to handle almost the entire home-selling process yourself.
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 1.5% 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
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.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of March 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