📊 The data: We polled local agents and found that the average real estate commission in Rhode Island is 5.26%, which is less than the national average of 5.45%.
For a house sold for $321,513, this rate translates to $16,912 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.
Below, we cover everything you need to know commission costs in Rhode Island and also give you tips for getting low rates.
How real estate agent commission works in Rhode Island
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.
Based on our research, the average commission split in Rhode Island has 53.07% of the commission going to the listing agent and 46.93% 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 Rhode Island
💰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:
You might be in luck if you’re hoping to find a realtor in Rhode Island who will work with you for a reduced commission.
The state is currently experiencing a strong seller’s market, with home values rising by almost 7% since 2019. Inventory is moving quickly, with the average being listed for just 18 days before selling. To top it all off, the median sale price is actually ahead of the median listing price by a very small margin, indicating that sellers are easily getting what they’re asking for their houses.
These data points suggest that agents in Rhode Island should be motivated to offer discounted commissions to their customers.
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 Rhode Island
Successfully negotiating commission rates depends mainly on two factors: your situation and the housing market.
You may have an easier time negotiating low rates if...
The Rhode Island housing market
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 Rhode Island.
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.
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 Rhode Island.
Stats and facts: The current state of the Rhode Island real estate market
Months of inventory
There's 0.6 months of housing inventory on the market
Homes are selling for 100.10% of their listing price
Home values have risen/fallen 6.93% year over year
Low commission real estate companies in Rhode Island
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 Rhode Island
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.
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
As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.
1-1.5% (min. fees apply)
Avg. $1,500 (where availabe)
Avg. Customer Rating
3.2/5 (243 reviews)
- Redfin is an online listing portal and multi-state real estate brokerage operating in 80+ markets across the United States
- Sellers get full service and support from a Redfin agent for a reduced listing fee (rates and minimums vary by location)
- Redfin agents are salaried. Since they do not work on commission, there is no incentive to get sellers the highest sale price — learn more
- RedfinNow — Redfin's iBuyer program — makes all-cash offers on qualifying homes in 10 markets for a 7% service fee (but no additional commission)
- Buyers in select markets might be eligible for a home buyer rebate — learn more
|Atlanta||Inland Empire*||Palm Springs|
|Boston||Lake Tahoe||Portland, OR^|
|Charlotte||Little Rock^||Rhode Island|
|Cleveland^||Louisville^||Salt Lake City|
|Des Moines^||Nebraska^||South Carolina|
|Detroit||New Jersey||South Texas^|
|El Paso^||New Mexico||Spokane|
|Flagstaff||New York City||St. Louis^|
|Fort Myers||Northeast Virginia||Tampa|
|Grand Rapids||Northern New England||Tucson^|
|Hampton Roads||Oklahoma^||Washington, D.C.|
|Hawaii||Orange County, CA*||Wisconsin^|
*Also a RedfinNow location
^No home buyer rebate available
As of May 20, 2020, Redfin's average customer rating is 3.2/5 based on 235 reviews across Yelp, Google, and Consumer Affairs.
*These reviews are for Redfin's Seattle, WA office. Reviews may vary by location.
Flat-fee MLS listing services Rhode Island
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.
Number of Photos
- FSBO.com is a flat-fee MLS referral service that connects you with licensed brokerage MLSmart Realty, LLC. MLSmart Realty then refers you to a regional Rhode Island broker who will list your home on your local MLS for a pre-negotiated rate
- Set your own buyer’s agent commission (FSBO.com recommends 2-3%)
- Edit or cancel anytime (may include an additional fee)
- A-la-carte services include custom yard sign, same day MLS entry, listing on a secondary MLS, Realtor.com Showcase listing, negotiation services, and more
$399.95 - Rhode Island Flat Fee MLS
- 6-month listing on MLS
- Syndicated to Realtor.com, Zillow, Trulia, and more
- Up to 20 MLS photos
- FSBO.com Listing
- Unlimited photos on FSBO.com
- Video Upload on FSBO.com
A-la-carte options (purchased directly from local broker) include: custom yard sign, same day MLS entry, listing on a secondary MLS, Realtor.com Showcase listing, negotiation services, and more
- Set your own buyer’s agent commission
- A-la-carte services available
- Only one package to choose from
- No home valuation included
Note: As a referral service, the reviews and service quality of your local FSBO.com broker may vary. Be sure to research your broker before signing a listing agreement.
Number of Photos
6 to max allowed
- Houzeo is a flat-fee MLS referral service that connects you with Rhode Island brokers and agents who will list your home on your local MLS for a pre-negotiated rate
- Draft your listing, upload photos, set your price, and sign MLS contracts via Houzeo’s online dashboard
- Autofills listing details using publicly available info about your home to expedite the listing process
- Home valuation not included in service
- Does not require that you offer buyer’s agent commission
- Listing is typically live within 24 hours of submission
|$199 - Bronze||$399 - Gold|
- Free cancellation anytime (no refunds)
- Freedom to specify any buyer’s agent commission
- Listings typically go live within 24 hours
- Limited coverage in rural areas
- “Free changes” only apply to listing’s price, status, and property description; $10 for additional changes
As of August 7, 2020, Houzeo has an average rating of 4.8/5 based on 21 reviews on Google.
» MORE: About flat-fee MLS services.
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, Rhode Island 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 September, 2020 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of September, 2020