How commission works | How to save on commission | The current Minnesota housing market | The best low commission companies | Methodology
📊 The data: We surveyed local agents and found that the average real estate commission in Minnesota is 5.68%, which is higher than the national average of 5.50%. |
That means, to sell an average Minnesota house worth $301,200 you’ll pay about $17,100 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 5.68%.
Selling with a discount real estate company like Clever could help you save thousands on commission. Clever negotiates 1% listing fees with full-service Minnesota realtors from top brokers.
On that same $301,200 home — you'd pay just $11,200, up to 35% 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 Minnesota real estate commission fees and share tips on how to save more when you sell.
How real estate agent commission works in Minnesota
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 Minnesota has 52.3% of the commission going to the listing agent and 47.7% going to the buyer's agent.
» LEARN: How do real estate commissions work?
Who pays realtor fees in Minnesota?
In Minnesota, 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 Minnesota
💰 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 Minnesota
Whether you’re selling a duplex in Minneapolis, a vacation cabin in Bemidji, or a family home in Mankato, you should always try to negotiate a lower commission rate — it could save you thousands!
Negotiating a lower realtor percentage 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 |
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The Minnesota housing market |
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While your personal situation will obviously vary, Minnesota 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 Minnesota 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 Minnesota real estate market
Factor | Trends | Indication |
|---|---|---|
Months of inventory | There's 0.7 months of housing inventory on the market | Seller's market |
Sale-to-list ratio | Homes are selling for 102.60% of their listing price | Seller's market |
Home values | Home values have risen 9.4% year over year | Seller's market |
» FIND: The average commission rates in more Minnesota cities:
Find a top realtor in Minnesota
Ready to negotiate with an agent in your area? We looked at the data and found the top Minnesota agents for you.
» FIND: The best Minnesota realtors by city
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.
These are some of the top discount and flat-fee MLS services in Minnesota.
The top discount real estate companies in Minnesota
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 Minnesota 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 Minnesota
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.
123 Flat Fee Minnesota
123 Flat Fee MinnesotaBest For
Sellers who expect a lot of in-person showings
Price Range
$299-599
Pros:
- You'll have access to ShowingTime, an app that agents use to coordinate showings.
- The Premium package comes with a lot of materials to help you with open houses and showings like yard signs, directional signs, and property flyers.
Cons:
- The basic package only allows six photos. You'll usually want to include more photos to give people a better look at your property online.
- The company doesn't cover all of Minnesota. You can check out its website for specific regions.
Minnesota Flat Fee MLS
Minnesota Flat Fee MLSBest For
Sellers on a tight budget
Price Range
$99-149
Pros:
- The $149 listing option lets you post as many photos as the MLS allows.
- This service participates in four MLSs that cover nearly all of the state.
Cons:
- You don't have many options for add ons or additional services
- Both packages only include a six-month listing. There's no options for longer listing periods.
» MORE: What you need to know about flat-fee MLS services.
Learn more
Minnesota consistently ranks among the most livable states in the U.S., thanks to its all-around excellence in everything from its economy to public education to crime rates to cost of living. It’s got natural beauty, too. The name Minnesota derives from a Native American word meaning “sky blue water,” and the state's known as the Land of 10,000 Lakes.
In a state this appealing, it’s no surprise that the housing market is booming. Median home values in Minnesota have doubled over the past decade. That said, home values aren’t that higher than the national average, so there’s a ton of potential growth to be found for buyers and investors alike.
Commission is the single largest cost of selling your home in Minnesota, but Clever can help you save on that front. Clever pre-negotiates low commission rates of 1%, or a flat fee of $3,000 if your home sells for less than $350,000, and it only works with vetted top agents in Minnesota. Contact Clever today to find out how it can help you!
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