Illinois Real Estate Commissions: What You Can Expect in 2024
Whether you’re stepping into the real estate market as a buyer or a seller, having a clear understanding of how real estate commissions work in Illinois is key. In 2024, new changes were introduced to improve clarity and communication regarding commission structures. These changes aim to give both buyers and sellers more control over the associated costs in real estate transactions.
This guide breaks down the essentials of real estate commissions in Illinois and explains how they could impact your upcoming home sale or purchase, whether you’re a first-time homebuyer or a seasoned market participant.
Current state of the Illinois housing market
Before diving into the specifics of real estate commissions, it’s useful to grasp the current state of Illinois’ housing market:
Median Home Sale Price
$301,100
Housing Supply
45,070 (-1.1% YoY)
Homes Sold Above List Price
39.4% (-3.4 pts YoY)
Understanding real estate commissions in Illinois
What are real estate commissions?
Real estate commissions are payments made to agents for assisting in the buying or selling of homes. These fees are usually calculated as a percentage of the final sale price and are typically settled during the closing of the deal.
Who pays the commission?
Traditionally, the seller has been responsible for paying both their own agent’s commission and the buyer’s agent’s fee. However, as of August 17, 2024, buyers must now sign an agreement outlining their agent’s commission before beginning home tours.
Although sellers can still be asked to cover the buyer’s agent’s commission, the final amount is negotiable and can vary depending on the deal.
Average real estate commission rates in Illinois
Commission rates in Illinois are not fixed and can vary depending on the specifics of the transaction. Factors such as the home’s location, the current market conditions, and the level of service offered by the agent can all influence the commission rate. Below is an example of typical commission costs in Illinois’ major cities:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Chicago
$364,000
$8,700
$17,400
$29,000
Aurora
$315,000
$24,375
$48,750
$81,250
Joliet
$293,000
$11,625
$23,250
$38,750
At Redfin, we strive to offer competitive rates, with listing fees for sellers starting as low as 1%*. While buyer fees can differ based on location, our goal is to keep our rates competitive so your offer stands out in the market.
Can you negotiate real estate commissions in Illinois?
Absolutely! Real estate commissions are fully negotiable. Agents are often willing to adjust their rates depending on the specifics of the deal, the type of services they’re providing, and the property’s appeal.
When negotiating, you should consider factors like the agent’s experience, their marketing strategies, and the current state of the local housing market. In cases where an agent represents both buyer and seller (dual agency), there may be more flexibility to negotiate lower fees.
Tips for a successful negotiation
Interview multiple agents: Speak with a few agents to compare their services and rates.
Consider performance bonuses: You can offer agents incentives for selling your home quickly or securing an offer above the asking price.
Use your home’s appeal as leverage: Homes in high-demand areas or those likely to sell quickly may give you more negotiating power for lower commission rates.
Illinois real estate commission FAQs
What are the changes to real estate commission? Two major changes took effect in 2024:
Buyers must sign an agreement outlining their agent’s fee before touring homes.
In many markets, buyer agent fees are no longer displayed in MLS listings.
Learn more about the real estate commission changes here.
How do the changes impact buyers in Illinois? Buyers now have to agree to their agent’s commission in writing before touring homes, but they can still negotiate with the seller to have the fees covered as part of the offer process.
How do the changes impact sellers in Illinois? Sellers now need to decide with their agent how much, if anything, they are willing to contribute towards the buyer’s agent’s commission, which will be negotiated during the offer stage.
How do you find a real estate agent in Illinois? Whether you’re buying or selling, Redfin agents are available to guide you through every step of the transaction, ensuring you understand the entire process.
How can you avoid fees? If you choose to sell your home without using an agent—known as a For Sale By Owner (FSBO) sale—you can avoid commission fees. However, this option requires you to handle all aspects of the sale, from marketing and showings to managing legal paperwork.
*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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