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 Minneapolis is 5.50%, which is about equal to the national average of 5.49%. Calculate your estimated commission in Minnesota.
The average total real estate agent commission rate in Minneapolis is 5.50% of the final sale price. Based on the latest median home sale price in Minneapolis ($363,017), that translates to a total cost of roughly $19,966.
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 Minneapolis, the average listing agent fee is 2.75%, while the average buyer’s agent fee is 2.75%.
Real estate agent commissions make up a significant portion of the closing costs for Minneapolis home sellers. But you don't have to pay the full 5.50% to a traditional agent. If you're selling a home in Minneapolis, 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 32% on realtor fees, or about $6,353 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 Minneapolis
| Average listing commission | 2.75% |
| Average buyer's agent commission | 2.75% |
| Total average commission | 5.50% |
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 Minneapolis for listing agents is 2.75% of the final home price and 2.75% for buyer's agents, for a total of 5.50%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for Minneapolis
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Minneapolis. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
Want to keep more money from your home sale? Clever connects you with a leading local listing agent who offers a competitive commission rate of just 1.5%. This can significantly increase the amount you pocket from the sale of your home.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Who pays realtor fees in Minneapolis?
When you list your home in Minneapolis, expect to cover the average realtor commission for both the listing and buyer's agents from your home's sale proceeds. As the seller, you won't have to pay these fees upfront.
Your listing agent justifies their commission by providing a detailed market analysis, marketing your home effectively, and overseeing the closing process. Meanwhile, the buyer's agent earns their fee by securing a qualified buyer who meets the purchase terms and completes the sale.
Keep in mind, as the seller, you don't pay these commissions out of pocket. The agents' fees come from the sale proceeds once the transaction closes.
Why do sellers pay the buyer's real estate agent commission?
Offering a competitive buyer's agent commission can make your home stand out in the market. By covering this fee, you present your property as a more attractive option to buyers who might be overwhelmed by the costs of a down payment and closing costs, in addition to their agent's commission.
Set a competitive commission for the buyer's agent, and watch as more real estate professionals are keen to showcase your home to prospective buyers. This tactic often results in a wave of competitive offers. Consider setting the buyer's agent commission just 0.5% below the local average, which is 2.75% in Minneapolis. Such a strategic price point can significantly increase interest from motivated buyers.
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 Minneapolis
Commission rates are not set in stone. In fact, we found that while 2.75% is the average listing commission in Minneapolis, 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% |
» LEARN: What's the commission on a $1 million home?
Can I negotiate realtor commission in Minneapolis?
Real estate commission is always negotiable. In Minnesota, 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 | 85% |
| Homeowners who also plan to buy with you | 69% |
| Homeowners with more than one property to sell | 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% |
Negotiating realtor fees in Minneapolis 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 Minneapolis housing market |
|
Your home sale in Minneapolis won't exist in a bubble; local real estate trends impact every seller in your area.
In a seller's market, you're in the driver's seat, and homes often sell more quickly. This can lead listing agents to be more flexible with their commission rates. On the flip side, in a buyer's market, agents tend to stick firmly to their standard fees.
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 understand the real estate market in your area, keep an eye on these three critical indicators:
- Inventory Months
- Sales Price to List Price Ratio
- Home Value Trends
If these signs point to Minneapolis being a strong seller's market, you might have the leverage to talk down commission rates. But if the market leans towards buyers, convincing an agent to cut their rate could be more challenging.
The current state of the Minneapolis real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 1.01 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 93.09% of their listing price | Buyer's market |
| Home values | Home values have risen 11.87% 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 Minneapolis
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.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: For property sellers in Minneapolis, MN who are seeking to cut down on commission costs without sacrificing quality service, Clever stands out as our foremost recommendation.
✅ Benefits and features: Clever not only presents competitive commission rates but also shines with an impressive track record, backed by a multitude of enthusiastic customer testimonials.
🏠 How it works: Clever pairs you with leading local real estate agents within the Minneapolis and broader Twin Cities Metro vicinity. This service streamlines the process of weighing your options among esteemed brokerages such as RE/MAX and Compass, ensuring you benefit from the special 1.5% listing fee (on par with Redfin), regardless of the agent you select.
Pros
- Enjoy premium service at reduced commission rates
- Exceptional customer satisfaction, as evidenced by extensive positive reviews
- High volume of transactions indicates deep market expertise and experience
Cons
- The single pricing model may not cater to all client-specific requirements
- Additional services may incur extra charges, varying by the agent you partner with
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Redfin is a solid choice for many Minneapolis homeowners looking to save on real estate fees. However, it's important to note that their minimum listing fee of $4,000 can be higher than what some local discount brokerages offer, particularly in Minneapolis.
✅ Benefits and features: Redfin's 1.5% listing fee can lead to solid savings. Plus, an extra 0.5% discount applies if you’re buying and selling with Redfin within 12 months. As a large brand, Redfin has more local agents to choose from than smaller discount firms.
🚩 Potential red flags: Redfin’s team-based approach to selling may not be for everyone. With a tech-heavy remote approach, you’ll work with a lead agent and a back-office team rather than meeting with a dedicated agent in person. Redfin also has a minimum $4,000 fee in Minnesota. If your home is valued below $269,000, you’ll pay slightly more than the advertised 1.5% rate.
Pros
- Good listing fee savings
- Decent agent selection in St. Paul
- Remote approach may add extra convenience
Cons
- Minimum fee is slightly higher than some alternatives in St. Paul
- Remote approach may not appeal to sellers who prefer a personalized experience
- Fewer available agents compared to Clever options in the area
- Offers fewer agent choices compared to Clever
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: If you're navigating the property market in Minnesota and plan to both buy and sell, Lou Tran of Realty 32 could be a valuable asset, offering unique benefits for dual transactions.
✅ Benefits and features: Lou Tran and Realty 32 have garnered an impeccable reputation, as evidenced by a perfect 5-star rating, indicating high levels of client contentment. Their services are particularly tailored for those engaging in property transactions in the vicinity of St. Paul.
🚩 Potential red flags: The financial advantages provided by Lou Tran / Realty 32 are specifically tailored for clients who are involved in both purchasing and selling through their agency. It's important to note that their services are focused on properties under 1 acre and with a market value below $1 million.
Pros
- Highly commended by clients for their service
- Substantial potential savings on commissions for simultaneous buyers and sellers
- Deeply knowledgeable about the Minnesota property market
Cons
- Exclusive savings are contingent upon buying and selling in the local market
- May possess less breadth of experience in handling transactions compared to other prominent discount brokers
- A relatively limited pool of client reviews
- Smaller selection of realtors when compared to larger 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 Minneapolis'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 February 2024
- Sale-to-list ratios: Based on Zillow data as of February 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of March 2024
