Virginia Real Estate Commissions: What You Can Expect in 2024

Real estate commissions are a key factor in Virginia’s home-buying and selling process, directly influencing your overall financial strategy. In 2024, new updates were introduced to enhance transparency, giving both buyers and sellers clearer insight into commission costs and more room for negotiation.

This guide will walk you through the essential information about real estate commissions in Virginia, whether you’re entering the market as a first-time buyer or an experienced seller.

Current state of the Virginia housing market

Before we dive into the specifics of Virginia real estate commissions, it’s helpful to have a quick overview of the state’s housing market:

Median Home Sale Price
$447,800

Housing Supply
29,151 (+12.0% YoY)

Homes Sold Above List Price
36% (-8.2 pts YoY)

Understanding real estate commissions in Virginia

What are real estate commissions?

Real estate commissions are payments made to real estate agents once a property sale is successfully completed. Usually calculated as a percentage of the sale price, these fees are paid at the closing stage and compensate the agent for their efforts throughout the transaction.

Who pays the commission?

Traditionally, sellers have been responsible for paying both the listing agent’s and the buyer’s agent’s commissions. However, starting August 17, 2024, buyers are now required to sign an agreement that details their agent’s commission before they begin touring properties.

Buyers can still ask the seller to cover their agent’s commission when making an offer, but under the new rules, the amount the seller may contribute is now variable and fully negotiable.

Average real estate commission rates in Virginia

Commission rates in Virginia can fluctuate based on various factors like market conditions, location, and the specific agreements between the buyer, seller, and agents. Although there are standard practices, commissions are negotiable, allowing for adjustments as needed.

Several elements—such as the property’s location, the demand in the local market, and the services provided by the agent—play a role in determining commission rates. Below is a breakdown of common commission rates for Virginia’s largest cities based on median home prices:

City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission

Virginia Beach
$390,000
$5,850
$11,700
$19,500

Chesapeake
$410,000
$6,150
$12,300
$20,500

Arlington
$685,000
$10,275
$20,550
$34,250

At Redfin, we’re dedicated to delivering exceptional value to our clients. That’s why we offer sellers listing fees starting at just 1%.* For buyers, our fees vary by location but are designed to remain competitive, helping your offer stand out and increasing your chances of success in the homebuying journey

Can you negotiate real estate commissions in Virginia? 

Yes, real estate commissions in Virginia are open to negotiation. Many factors can affect the final commission, including the services your agent provides and your working relationship with them.

When negotiating, it’s important to think about the agent’s marketing plan and knowledge of the local market. If you’re working with the same agent for both buying and selling (a dual agency), you might be able to further reduce the commission, as only one agent is handling both sides of the transaction.

Tips for a successful negotiation

Speak to multiple agents to compare their services and rates.
Propose a commission structure that incentivizes quicker sales or higher sale prices.
If your home is in a desirable location, use that as leverage to request lower commission fees.

Virginia real estate commission FAQs

What are the changes to real estate commission? Two major updates took place in 2024: buyers must now agree to their agent’s commission in writing before they begin touring homes, and in some regions, buyer agent commission rates are no longer displayed on the MLS. Learn more about the real estate commission changes here. 

How do the changes impact buyers in Virginia? Buyers are now required to sign an agreement that outlines their agent’s fee before viewing properties. However, during negotiations, buyers can still request that the seller contribute toward these fees when making an offer.

How do the changes impact sellers in Virginia? Sellers will continue to work with their listing agent to determine how much, if anything, they want to offer as compensation to the buyer’s agent. The seller will consider any requests and negotiate the terms as part of the offer process.

How do you find a real estate agent in Virginia? Partnering with a Redfin agent when you’re ready to buy or sell ensures you get expert guidance through every step of the process, from initial discussions to closing.

How can you avoid fees? One option to avoid paying real estate commissions is to sell your property through a For Sale By Owner (FSBO) approach. Keep in mind that this will require you to handle all aspects of the sale yourself, which can be both time-consuming and complex without the help of a professional.

*Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.

The post Virginia Real Estate Commissions: What You Can Expect in 2024 appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.