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 Minnesota is 5.82%, which is higher than the national average of 5.49%. Calculate your estimated commission in Minnesota.
The average total real estate agent commission rate in Minnesota is 5.82% of the final sale price. Based on the latest median home sale price in Minnesota ($316,980), that translates to a total cost of roughly $18,448.
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 Minnesota, the average listing agent fee is 3.05%, while the average buyer’s agent fee is 2.77%.
Real estate agent commissions make up a significant portion of the closing costs for Minnesota home sellers. But you don't have to pay the full 5.82% to a traditional agent. If you're selling a home in Minnesota, 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 36% on realtor fees, or about $6,668 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 Minnesota
| Average listing commission | 3.05% |
| Average buyer's agent commission | 2.77% |
| Total average commission | 5.82% |
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 Minnesota for listing agents is 3.05% of the final home price and 2.77% for buyer's agents, for a total of 5.82%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for Minnesota
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Minnesota. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
If you want to lower your agent fees, Clever can connect you with a top local listing agent charging just 1.5% commission. This allows you to retain more of the sale proceeds.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Who pays realtor fees in Minnesota?
When selling a home in Minnesota, the listing agent and buyer's agent commissions get deducted from the final sale price. The seller does not pay these fees upfront.
The listing agent earns their share by supplying services like market analysis and handling closing paperwork. The buyer's agent makes their commission by delivering a qualified buyer who meets the purchase terms and closes on time.
The seller does not pay commissions out-of-pocket. Similar to closing costs, the agents' fees come out of the sale proceeds at closing.
Why do sellers pay the buyer's real estate agent commission?
Offering to cover the buyer's agent commission can make your listing more enticing to potential buyers.
Paying this fee increases appeal for buyers by eliminating this extra cost in addition to the down payment and closing costs – a major financial strain for many.
When you advertise a competitive buyer's agent commission, real estate agents get motivated to actively showcase your property to their buyer clients. This can improve the likelihood of attracting multiple offers. Experts recommend publicizing a commission within 0.5% of the local average, now 2.77% in Minnesota.
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 Minnesota
Commission rates are not set in stone. In fact, we found that while 3.05% is the average listing commission in Minnesota, 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 | 2.40%– 4.00% |
| Total commission range | 4.40%– 8.00% |
Can I negotiate realtor commission in Minnesota?
Real estate commission is always negotiable. Nationwide, the 630 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 | 85% |
| Homeowners with more than one property to sell | 82% |
| Homeowners who also plan to buy with you | 69% |
| Seller’s situation (e.g. divorce or death in the family) | 62% |
| Higher property values | 62% |
| Homes expected to sell quickly | 54% |
| Periods of low housing inventory | 46% |
| High buyer demand in the area | 38% |
| High competition for clients | 38% |
| Houses in excellent condition | 31% |
| Highly experienced home sellers | 23% |
» LEARN: What's the commission on a $1 million home?
Negotiating realtor fees in Minnesota 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 Minnesota housing market |
|
While your personal situation differs, real estate conditions across Minnesota impact all local sellers.
In a seller's market with low inventory, homes sell faster so agents may more willingly reduce commissions. The opposite is often true when buyers hold more leverage.
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 evaluate market dynamics, analyze:
- Months of inventory
- Sale to list price ratio
- Home value trends
If Minnesota shows a seller's market, you may readily negotiate a lower agent commission. But in a buyer's or balanced market, getting an agent to accept a cheaper rate may prove more challenging.
The current state of the Minnesota real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 1.32 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 98.80% of their listing price | Seller's market |
| Home values | Home values have risen 12.20% year over year | Buyer's market |
» LEARN: See state-by-state average commission rates. How does your state compare?
Low commission real estate companies in Minnesota
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.
Clever Real Estate (WBHFC – Minnesota)
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: If you're a homeowner in Minnesota looking to cut down commission costs without skimping on quality, Clever stands out as a top-tier choice. It's a platform that marries cost-effectiveness with full-service agents from well-known brokerages.
✅ Benefits and features: We're particularly impressed with Clever's ability to slash potential commission costs by up to half compared to traditional realtors. Their complimentary, no-strings-attached agent-matching service is also a standout feature that garners significant praise.
🏠 How it works: Through Clever, sellers gain access to a roster of esteemed local agents from respected firms like RE/MAX and Compass. This means you have the luxury of choice alongside the benefit of a unified 1.5% listing fee. Your real estate endeavor becomes a custom-fit experience at a cost that rivals that of Redfin's.
Pros
- Sell your home through a seasoned agent affiliated with a well-regarded brokerage, rather than a lesser-known discount agent.
- Agents with Clever operate at rates significantly reduced by up to 50%.
- Enjoy the broadest selection of distinguished Warren realtors readily available to you through Clever's network.
Cons
- There is no certainty that you can choose a specific agent or brokerage you have in mind.
- While basic services are covered, additional premium marketing services such as professional home staging or aerial photography may incur extra fees. Agents can provide detailed information about what is included during your initial meeting.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: We find Redfin to be a solid option for Minnesota sellers aiming to cut down on real estate fees while still engaging with a sizable brokerage. Yet, it’s important to bear in mind that Redfin has a minimum service fee of $4,000, which can be steep compared to other discount realty services.
✅ Benefits and features: The allure of Redfin's 1.5% listing fee is its potential for significant cost savings. Sellers using Redfin for both selling and buying within a year could enjoy an additional 0.5% fee reduction. Its status as a well-known and far-reaching company means you'll have access to an extensive network of lower-rate realtors beyond local offerings.
🚩 Potential red flags: Redfin’s operational model sets it apart from conventional realty companies by prioritizing an online and team-oriented interaction over the more traditional one-on-one, in-person connection with a single realtor. This remote setup may not appeal to those who value a more hands-on and individualized service.
Pros
- Potential savings on listing fees are substantial.
- Offers a broad choice of discounted agents across Minnesota.
- Remote-service model may be more convenient for some sellers.
Cons
- The $4,000 minimum fee may diminish net savings, particularly in Minnesota.
- For properties selling below $269,000, your rate will exceed the advertised 1.5%.
- The less personal, online and team-based format may not resonate with sellers who prefer individual agent engagement.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: If you’re navigating the buy-and-sell maze in Minnesota, Lou Tran / Realty 32, a community-oriented discount brokerage, could be your financial ally.
✅ Benefits and features: Lou Tran / Realty 32 prides itself on top-notch regional expertise, as evidenced by their impressive five-star approval rating from satisfied clients, signaling a commitment to exceptional customer care.
🚩 Potential red flags: It's worth noting that the financial perks are exclusively for those using Lou Tran / Realty 32's services for both purchasing and selling in Minnesota. Furthermore, thorough research didn’t reveal any confirmed dealings by this broker in Minnesota lately, indicating a potential lapse in recent brokerage activities.
Pros
- Exceptional client testimonials set the bar for service quality.
- Opportunities for commission returns when involved in both buying and selling.
- In-depth understanding of Minnesota’s property landscape.
Cons
- Savings are confined to clients engaging in both buying and selling within local bounds.
- Feedback is on the scarce side, limiting the breadth of client experiences.
- Likely a smaller selection of agents when stacked against more extensive firms like Redfin or Clever.
» 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 Minnesota'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 January 2024
- Sale-to-list ratios: Based on Zillow data as of January 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of February 2024
