Navigating the real estate market in Montana can be a daunting task, especially if you’re unfamiliar with the state’s commission regulations. Recent changes in 2024 aimed to increase transparency throughout the process, making it easier for buyers and sellers to understand the associated costs. Whether you’re a novice in Montana’s housing market or a seasoned property owner, Redfin is here to guide you through the essential aspects of real estate commissions.
Before delving into commission specifics, it’s crucial to have an overview of Montana’s housing market performance:
Median Home Sale Price: $521,000
Number of Homes Sold: -2.9% YoY
Number of Homes for Sale: +23.3% YoY
Real estate commissions play a pivotal role in property transactions, serving as fees paid to agents for their involvement in buying or selling a property. Typically calculated as a percentage of the final sale price, these sums are settled at the closing of the deal. Traditionally, sellers covered both their agent’s commission and the buyer’s agent’s fee. However, as of August 17, 2024, Montana buyers must establish their agent’s fee in an agreement before embarking on home tours. While buyers can request sellers to fund their agent’s fee, the amount is negotiable.
Commission rates in Montana are flexible, dependent on various factors such as property location, market conditions, and agent services. Buyers and sellers are encouraged to negotiate these rates based on their individual requirements. Let’s take a look at the average commission rates in some of Montana’s largest cities:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Billings
$374,000
$5,610
$11,220
$18,700
Missoula
$575,000
$8,625
$17,250
$28,750
Great Falls
$304,500
$4,568
$9,135
$15,225
Redfin strives to offer sellers excellent value with listing fees as low as 1%*. For buyers, our competitive rates are tailored to help you present strong offers. Negotiating real estate commissions is entirely feasible in Montana, with variables like agent expertise, property location, and market trends influencing the process. Dual agency deals, where one agent represents both buyer and seller, may lead to reduced fees due to single-agent involvement.
When negotiating, keep these tips in mind:
Engage multiple agents for quotes and service comparisons.
Explore performance-based fees based on sale speed or price efficiency.
Leverage your property’s strengths, especially in desirable locations, for fee negotiation advantage.
The recent real estate commission changes stipulate that Montana buyers must consent to their agent’s fee before home tours commence. Though buyers can still request sellers to cover the commission in their offer, specifics may vary. For sellers, discussions with listing agents determine the commission offered to the buyer’s agent, subject to adjustment based on received offers. If you aim to avoid fees by selling your home without an agent through a for-sale-by-owner (FSBO) method, note that it entails handling marketing, paperwork, and showings independently.
In conclusion, understanding Montana’s real estate commissions is crucial for prospective buyers and sellers. By staying informed and negotiating effectively, you can navigate the market confidently and make well-informed decisions. Redfin’s local agents stand ready to support you on your home buying or selling journey, so reach out to us today to get started.
