Maine Real Estate Commissions: What You Can Expect in 2024
When it comes to buying or selling a home in Maine, understanding real estate commissions is crucial for smart financial planning and effective negotiation. Recent updates in 2024 have introduced new rules that enhance transparency in how these commissions are communicated nationwide.
Whether you’re new at homebuying or you’re a seasoned seller, this Redfin guide will walk you through Maine’s real estate commissions and what you can expect in today’s market.
Current state of the Maine housing market
Before we explore real estate commissions in Maine, let’s take a look at the current state of Maine’s housing market:
Median Home Sale Price
$414,700
Housing Supply
7,312 (+34.1% YoY)
Homes Sold Above List Price
35.7% (-10.5 pts YoY)
Understanding real estate commissions in Maine
What are real estate commissions?
Real estate commissions are fees paid to agents for their role in facilitating a property transaction from the homebuyers or sellers. Typically calculated as a percentage of the sale price, these fees are settled at the closing of the sale.
Who pays the commission?
Historically, sellers have covered the cost of both their agent’s and the buyer’s agent’s commissions from the sale proceeds. However, as of August 17, 2024, buyers are now required to agree in writing to their agent’s commission rate before starting home tours.
While buyers can still negotiate for the seller to cover their agent’s commission as part of the offer, this new rule provides more flexibility. The amount a seller may pay for the buyer’s agent is negotiable and can vary based on the deal.
Average real estate commission rates in Maine
Commission rates in Maine can vary widely based on various factors, including transaction specifics and party agreements. While standard rates exist, these fees are negotiable.
Factors like the property’s location, current market conditions, and the services offered by the agent influence the final commission rate. Here’s a look at example commission rates based on median home prices in major Maine cities:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Portland
$596,000
$8,940
$17,880
$29,800
Lewiston
$318,000
$4,770
$9,540
$15,900
Bangor
$270,000
$4,050
$8,100
$13,500
At Redfin, our goal is to deliver outstanding value for our clients. For sellers, we offer attractive listing fees beginning at just 1%.* For buyers, our fees vary by location to maximize the attractiveness of your offer and improve your likelihood of closing on a home.
Can you negotiate real estate commissions in Maine?
Absolutely! Since there are no federal regulations on commission rates, agents are usually open to negotiating their fees based on the transaction’s specifics, the services required, and the agent-client relationship.
Consider the following when negotiating:
The level of service provided by the agent
Their marketing approach
Their knowledge of the local market
Sellers may have more leverage if their property is in high demand or is expected to sell quickly. Furthermore, if the same agent represents both parties (dual agency), there may be additional opportunities for reducing commission fees.
Tips for a successful negotiation
Compare various agents and their commission structures before choosing.
Explore performance-based incentives, such as a higher commission for achieving a quicker sale or a better final price.
Emphasize your property’s location if it’s in a desirable area, which might encourage agents to accept a lower commission.
Maine real estate commission FAQs
What are the changes to real estate commission? Recent updates have changed how commissions are managed: Buyers must now agree to their agent’s fees in writing before home tours, and buyer agent compensation is no longer listed on MLS in many markets. Learn more about the real estate commission changes here.
How do the changes impact buyers in Maine? Buyers must now sign an agreement with their agent specifying the commission rate before beginning home tours. Nonetheless, you can still ask the seller to cover your agent’s fee as part of your offer.
How do the changes impact sellers in Maine? Sellers will continue to negotiate with their listing agent regarding the compensation offered to the buyer’s agent, if any. Any requests or changes to these terms will be addressed during the negotiation process.
How do you find a real estate agent in Maine? If you’re looking to buy or sell a home in Maine, Redfin is here to assist. Contact a Redfin agent to start the process.
How can you avoid fees? Selling a home on your own (For Sale By Owner, or FSBO) can eliminate commission fees, but it requires considerable effort, including handling marketing, showings, and paperwork on your own.
*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 Maine Real Estate Commissions: What You Can Expect in 2024 appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
