Rhode Island Real Estate Commissions: What You Can Expect in 2024
When you’re navigating Rhode Island’s housing market, understanding how real estate commissions work is key. Changes implemented nationwide in 2024 have increased transparency, helping both buyers and sellers better comprehend the associated costs. These updates aim to simplify transactions, allowing everyone involved to make smarter financial decisions.
Whether you’re new to Rhode Island’s real estate scene or have dealt with property sales before, this guide will shed light on commission structures in today’s market, ensuring you’re well-informed.
Current state of the Rhode Island housing market
Before we get into the details of real estate commissions, it’s essential to understand the current housing market in Rhode Island:
Median Home Sale Price
$512,300
Housing Supply
3,024 (+11.7% YoY)
Homes Sold Above List Price
52.8% (-5.8 pts YoY)
Understanding real estate commissions in Rhode Island
What are real estate commissions?
Real estate commissions are the fees paid to agents for their work in facilitating the purchase or sale of a home. These fees, typically calculated as a percentage of the sale price, are settled during the closing process.
Who pays the commission?
Traditionally, the seller handles the commission fees for both their agent and the buyer’s agent, paying from the proceeds of the sale. However, as of August 17, 2024, Rhode Island buyers are required to sign an agreement outlining their agent’s commission before they even begin touring properties.
While buyers can still negotiate for sellers to contribute to their agent’s fee as part of the offer, this is not a given—the final arrangement depends on negotiation.
Average real estate commission rates in Rhode Island
Rhode Island does not have set commission rates. These rates are influenced by several factors, including the property’s location, current market conditions, and the services the agent provides. Both buyers and sellers have the freedom to negotiate terms that suit their needs.
Here’s a breakdown of example commission costs in some of Rhode Island’s major cities:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Providence
$483,840
$7,257
$14,515
$24,192
Cranston
$444,950
$6,674
$13,349
$22,248
Warwick
$415,000
$6,225
$12,450
$20,750
At Redfin, our goal is to deliver exceptional value to our clients. That’s why we offer sellers a listing fee beginning at just 1%*. For buyers, our commission rates vary by region but are always designed to stay competitive, helping to make your offer more attractive.
Can you negotiate real estate commissions in Rhode Island?
Yes, commissions in Rhode Island are completely negotiable. There are no regulations setting fixed rates, allowing both parties to settle on a commission structure that works for them. Various factors, such as the agent’s level of experience, the property’s location, and market trends, play a role in determining the final rate. Additionally, if one agent represents both the buyer and the seller (dual agency), this could open the door to further commission reductions.
Tips for a successful negotiation
Consult with multiple agents: Speak with several agents to compare their services and commission rates.
Incentive structures: Consider offering performance-based bonuses for quicker sales or higher-than-expected sale prices.
Highlight property strengths: If your home is in a high-demand area, you may have more leverage to negotiate lower commissions.
Rhode Island real estate commission FAQs
What are the changes to real estate commission? Buyers now need to agree on their agent’s fee in writing before starting property tours. Additionally, In some markets, the buyer’s agent’s compensation may no longer be visible on MLS listings. Learn more about the real estate commission changes here.
How do the changes impact buyers in Rhode Island? Buyers must sign off on their agent’s commission before they begin touring homes, though they can still request that the seller contribute toward this fee during negotiations.
How do the changes impact sellers in Rhode Island? Sellers continue to work with their listing agent to negotiate how much, if any, commission will be offered to the buyer’s agent. This can be influenced by the offer they receive and other factors.
How do you find a real estate agent in Rhode Island? If you’re looking to buy or sell a home in Rhode Island, Redfin is ready to help. Reach out to a local Redfin agent today to get started.
How can you avoid fees? If you’re looking to save on commission fees, you might consider selling your property yourself through the for-sale-by-owner (FSBO) approach. However, this means handling everything yourself—from marketing and showings to paperwork and negotiations.
*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.
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