How commission works | Getting low rates | Low commission companies | Methodology
📊 The data: We polled local agents and found that the average real estate commission in North Dakota is 5.66%, which is higher than the national average of 5.45%. |
For a house sold for $237,608, this rate translates to $13,449 in real estate agent commission costs.
Realtor commission is usually the largest cost that home sellers face, but the upside is that it also represents the biggest potential for savings.
» MORE: Learn how Clever can help you save on commission.
Below, we cover everything you need to know commission costs in North Dakota and also give you tips for getting low rates.
How real estate agent commission works in North Dakota
There are two real estate agents involved in a typical home sale:
- The seller's agent (also called the listing agent), representing the home seller
- The buyer's agent, who represents the person buying the home
The seller's and buyer's agent get paid a percentage of the home's final price when the sale is finalized. This payment is called real estate agent commission, and is baked into the sale price of a home and split between the two agents.
» LEARN: More about how real estate commissions work.
Based on our research, the average commission split in North Dakota has 51.69% of the commission going to the listing agent and 48.31% going to the buyer's agent.
Who pays for real estate commissions?
Home sellers are responsible for paying the real estate commission of both the agent representing them, as well as the agent representing whoever buys their home.
However, since the realtor commission is baked into the sales price you could say that the home buyer is paying — at least in-part — through a higher sales price.
» MORE: Who pays realtor commission.
How to save on real estate commission in North Dakota
💰Best ways to save While there are a number of options for home sellers looking to save on commission, good options for most home sellers include:
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» MORE: Options for saving on realtor commission
The slow growth in the market might make agents in North Dakota hesitant to negotiate their commission.
Unlike neighboring South Dakota, North Dakota has seen very little increase in year-over-year home values — rising just 1%.
Below we cover how you can negotiate lower rates, and list some of our recommendations of low commission real estate companies that you should consider.
Tips for negotiating realtor commission in North Dakota
Successfully negotiating commission rates depends mainly on two 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 North Dakota housing market |
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» LEARN: How you can negotiate lower commission rates.
While the personal factors that affect your ability to negotiate commission rates are unique to you, the local real estate market conditions will affect all home sellers in North Dakota.
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 inclined to offer lower commission rates. The opposite is true in a buyer's market.
📖Definitions Months of inventory, is measured by dividing the homes listed for sale in the most recent month by the number of homes actually sold in that month. It is a key indicator of how much supply and demand there is for houses in a market. Sale-to-list is calculated by dividing the median sale price by the median listing price in a given area. If homes in your area are generally selling for more than their listing price, that is a good indication that you are in a seller's market. Home values rising in your area indicate that demand is growing. Whereas if this figure is falling, then it's more likely that homes in your area are becoming less desirable. |
To judge the current state of the real estate market, you can look at three factors: months of inventory, sale to list price, and home value trends. Below, we've included a current breakdown of these factors in North Dakota.
Stats and facts: The current state of the North Dakota 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 price | Homes are selling for 0.936 of their listing price | Buyer's market |
Home value | Home values have risen/fallen 1.13% year over year | Neutral |
Low commission real estate companies in North Dakota
Home sellers looking to save money when selling their home should consider a low commission real estate company. To help you out, Clever has picked some of the top discount and flat-fee MLS services across the state:
Discount real estate brokers in North Dakota
Discount real estate brokers are companies that will list your home for a reduced commission percentage or flat rate. The catch is that the service might not be on-par with what you'd get from a top local agent.
Clever
Clever Real EstateListing Fee
1% (minimum $3,000)
Clever Cash Back
0.5% on homes over $150,000
Avg. Customer Rating
4.8/5 (386 reviews)
- Clever Real Estate is a nationwide, online concierge and agent matching service for sellers and buyers — learn more
- Buyers and sellers are matched with multiple highly rated agents from major brands, such as Keller Williams, Century 21, Compass, RE/MAX, and more
- Sellers choose a full-service agent and pay a flat, $3,000 fee — or just 1% for homes more than $350,000
- Buyers may be eligible for 0.5% back after closing (in qualifying locations)
Clever has pre-negotiated lower commission rates with top agents in all 50 states, D.C., and Puerto Rico
Pros
| Cons
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As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.
- Trustpilot: 4.8/5 (379 reviews)
- BBB: An A rating
» MORE: About discount real estate brokers.
Flat-fee MLS listing services North Dakota
Flat-fee MLS listing services offer to post your home on your local MLS for a low rate 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, this might not be a good option for you.
Flat Fee Group
Flat Fee GroupPrice Range
$425-849
Number of Photos
25-50
Listing Term
1 year
- Flat Fee Group is a national network of independent brokers that offer flat-fee MLS services in North Dakota
- Pay no buyer’s agent commission if you find an unrepresented buyer
- Buyer and agent inquiries forwarded to you
$425 - Ltd. Service
| $549 + 0.5% at closing or $849 - Full Service
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Pros
- Work directly with the broker, not a referral service
- Buyer inquiries forwarded directly to you
- Pay no commission if you find an unrepresented buyer
Cons
- No home valuation included
As of August 10, 2020, Jory Baumbach, the North Dakota Flat Fee Group broker, has a 5-out-of-5-star rating on Zillow (1 review).
Flat Fee Realty
Flat Fee RealtyPrice Range
$199 (+0.5% at closing)
Number of Photos
Listing Term
Listed until sold
- Flat Fee Realty is a nationwide flat-fee MLS referral service, licensed in Connecticut, that connects you with North Dakota brokers and agents who will list your home on the MLS for a pre-negotiated rate
- You set buyer’s agent commission
- MLS photo upgrade available for $50
- State disclosures and forms available
- Unlimited listing changes
- Buyer leads forwarded to you
- Refund available within 30 days of purchase
$199 + 0.5% at closing - MLS Listing package
- 1% commission if there’s no buyer’s agent
- Listed on MLS until sold
- Syndicated to Realtor.com, Zillow, Trulia, and more
- 6 Photos
- Free state disclosures
- Unlimited listing changes
- No cancellation fee
- Buyer leads forwarded to you
- Broker assistance
- Transaction guidance
MLS photo upgrade available for $50
Pros
- Unlimited listing changes
- No cancellation fee
- Free state disclosures
- Buyer leads forwarded to you
- Refund available within 30 days of purchase
Cons
- No built-in home valuation or market analysis
- Limited coverage in rural areas
As of August 11, 2020, no third-party reviews exist for Flat Fee Realty. We will update when this information becomes available.
» MORE: About flat-fee MLS services.
Methodology
Data on commission rates is based on a survey of 554 of our partner agents, in which we asked them to indicate the typical rates for both buyer's and seller's agents in their area. Due to data limitations, North Dakota commission figures were inferred from regional averages.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of September, 2020
- Sale prices and sale-to-list ratios: Based on Redfin data as of April, 2020 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of September, 2020