Average Real Estate Commission in South Dakota: 2024 Data

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By Jon Stubbs Updated July 1, 2024

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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 South Dakota is 5.49%, which is about equal to the national average of 5.49%. Calculate your estimated commission in South Dakota.

The average total real estate agent commission rate in South Dakota is 5.49% of the final sale price. Based on the latest median home sale price in South Dakota ($306,829), that translates to a total cost of roughly $16,845.

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 South Dakota, the average listing agent fee is 2.83%, while the average buyer’s agent fee is 2.66%.

Real estate agent commissions make up a significant portion of the closing costs for South Dakota home sellers. But you don't have to pay the full 5.49% to a traditional agent. If you're selling a home in South Dakota, 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 34% on realtor fees, or about $5,683 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 South Dakota

Average listing commission 2.83%
Average buyer's agent commission 2.66%
Total average commission 5.49%
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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 South Dakota for listing agents is 2.83% of the final home price and 2.66% for buyer's agents, for a total of 5.49%.

» LEARN: How do real estate broker commissions work?

Real estate commission calculator for South Dakota

Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in South Dakota. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.

If you want to decrease your realtor fees, Clever can connect you with a top local listing agent who charges just 1.5%. This will allow you to retain more money from the sale for yourself.

» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!

Who pays realtor fees in South Dakota?

When you sell your home in South Dakota, you'll find that the realtor commissions for both your listing agent and the buyer's agent come directly off the top of the final sale price. You won't need to worry about paying these fees in advance.

Your listing agent earns their commission by providing services such as conducting a thorough market analysis and managing the closing documents. On the other side, the buyer's agent earns their fee by finding a qualified buyer who agrees to the purchase terms and successfully closes the deal on time.

Remember, these commissions don't come out of your pocket upfront. Much like other closing costs, you pay the agents' fees from the sale proceeds after the transaction is complete.

Why do sellers pay the buyer's real estate agent commission?

Covering the buyer's agent commission can significantly boost the appeal of your listing. By shouldering this expense, you make your property more attractive to buyers who are already juggling the costs of a down payment and closing fees – expenses that can stretch many buyers' budgets.

A competitive buyer's agent commission incentivizes real estate agents to prioritize your home with their clients, potentially leading to a flurry of offers. To maximize interest, experts suggest offering a commission that's within 0.5% of the local norm, which stands at 2.66% in South Dakota.

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 South Dakota

Commission rates are not set in stone. In fact, we found that while 2.83% is the average listing commission in South Dakota, rates typically fall between 1.00% 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 1.00%– 4.00%
Buyer's agent commission 1.00%– 4.00%
Total commission range 2.00%– 8.00%
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Can I negotiate realtor commission in South Dakota?

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 also plan to buy with you 72%
Homeowners who are repeat clients 70%
Homeowners with more than one property to sell 67%
Seller’s situation (e.g. divorce or death in the family) 48%
Higher property values 47%
High competition for clients 37%
Homes expected to sell quickly 37%
Periods of low housing inventory 23%
High buyer demand in the area 22%
Houses in excellent condition 19%
Highly experienced home sellers 13%
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» LEARN: What's the commission on a $1 million home?

Negotiating realtor fees in South Dakota depends on two main factors: your situation and the housing market.

Factor You may have an easier time negotiating low rates if...
Your situation
  • You're selling a high-value home
  • You have a personal relationship with a realtor
  • You can offer a realtor repeat business
The South Dakota housing market
  • Homes are selling quickly
  • There are relatively few homes listed for sale
  • Home values are rising
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While your personal situation is unique, real estate conditions across South Dakota affect all local sellers.

In a seller's market with low inventory, listing agents' jobs get easier so they may readily reduce commissions. The opposite often holds true in a buyer's market.  

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 your market, look at:

  • Months of inventory 
  • Sale to list price ratio
  • Home value trends

If South Dakota shows signs of a seller's market, you may readily negotiate a lower commission. But in a buyer's or balanced market, getting an agent to accept a cheaper rate may prove harder.

The current state of the South Dakota real estate market

Factor Trends Indication
Months of inventory There's 1.64 months of housing inventory on the market Seller's market
Sale-to-list ratio Homes are selling for 98.40% of their listing price Seller's market
Home values Home values have risen 13.79% year over year Seller's market
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» LEARN: See state-by-state average commission rates. How does your state compare?

Low commission real estate companies in South Dakota 

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.

Best for most sellers

Clever Real Estate

Learn more
4.9
Excellent

Listing Fee

1.5% ($3,000 min.)

Customer Rating

5.0 (2,627)

Availability

Nationwide

Overview

Pricing

Reviews

Contact

Overview: When South Dakota homeowners are seeking significant savings on realtor fees without cutting back on professional expertise, our suggestion is to turn to Clever.

✅ Benefits and features: Enjoy a substantial reduction in realtor rates — Clever reduces standard fees by up to half. Clever also provides a top-tier, completely free matching service that comes with zero strings attached.

🏠 How it works: Clever partners you with highly esteemed local realtors from well-known firms such as RE/MAX and Compass. This allows for a comprehensive comparison to secure your ideal match, all while locking in the exclusive 1.5% listing fee (equivalent to Redfin), regardless of your realtor choice.

Pros

  • Sell with a traditional agent from a name-brand brokerage (not a discount agent)
  • Agents work for up to 50% off their typical rate when you go through Clever
  • Most agent selection by far — choose from hundreds of top South Dakota realtors

Cons

  • No guarantee you’ll be able to work with a specific agent or brokerage you have in mind
  • Add-ons like professional staging, drone photos, and 3D tours may cost extra (agents will break down what’s included during their listing presentation)

Fee structure

  • 1.5% listing fee ($3,000 minimum) at closing
  • 2–3% buyer’s agent commission at closing
Weighted avg. 5.0 2,627
Trustpilot 5.0 2,402
Google 4.8 225

Website: listwithclever.com
Phone: 1-833-225-3837
Hours: 7 a.m.–9 p.m. CST, 7 days a week
Address: 6358 Delmar Blvd, Suite 300, St. Louis, MO 63130

FSBOHOMES

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4.1
Good

Listing Fee

$3,900 at closing

Customer Rating

5.0 (51)

Availability

State-wide

Overview

Pricing

Reviews

Contact

Overview: With its high customer review score, FSBOHOMES appears to offer a reputable service on a national level. The flat fee is convenient for some sellers, though it's on the higher end as compared to other discounted service providers, which may deter sellers looking for significant savings.

✅ Benefits and features: FSBOHOMES is suitable for sellers who prefer straightforward pricing without the uncertainty of commission rates and are comfortable with a service that may not yet have proven its impact in the South Dakota market.

🚩 Potential red flags: Sellers who prioritize local expertise and a proven track record in their specific area may opt for a different company with more robust local transaction data. Those seeking the lowest possible cost might find the flat fee to be a disadvantage compared to percentage-based lower-cost options.

Pros

  • Fixed fee provides clarity on costs with no percentage-based commission
  • Positive overall customer satisfaction
  • Majority of reviews are positive, indicating consistent quality service

Cons

  • Higher flat fee compared to other discount real estate brokers

Fee structure

  • $3,900 at closing
Weighted Avg. 5.0 51
Facebook 5.0 22
Google 5.0 29

Website: fsbohomes.com/sioux-falls
Phone: (605) 593-4246
Address: 2101 W 41st St, STE 29A, Sioux Falls, SD, United States, South Dakota
Areas served: Baltic, Beresford, Brandon, Canton, Colton, Crooks, Dell Rapids, Garretson, Harrisburg, Hartford, Humboldt, Hurley, Lennox, Montrose, Parker, Renner, Sioux Falls, Tea, Worthing, and more. 

» 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 South Dakota's top agents. Contact Clever today to find out how much you can save on commission!

👋 Next Steps: Find an agent!

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 May 2024
  • Sale-to-list ratios: Based on Zillow data as of May 2024 (unless specified otherwise)
  • Months of inventory: Based on Realtor.com data as of May 2024

Additional resources for South Dakota home sellers

Better real estate agents at a better rate

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