Maryland Real Estate Commissions: What You Can Expect in 2024
When buying or selling a home in Maryland, it’s essential to have a clear understanding of real estate commissions for proper budgeting and negotiation. In 2024, new rules across the U.S. have reshaped how these commissions are presented, offering greater transparency for both buyers and sellers. These updates are designed to make the process more transparent, helping individuals make well-informed choices when dealing with real estate fees.
Whether you’re a first-time buyer or an experienced seller, this Redfin guide will walk you through the details of Maryland’s real estate commissions and what to anticipate in today’s market.
Current state of the Maryland housing market
Before we jump into what real estate commissions in Maryland are, let’s first take a look at the state’s housing market.
Median Home Sale Price
$436,100
Housing Supply
17,866 (+10% YoY)
Homes Sold Above List Price
41.9% (-3.8 pts YoY)
Understanding real estate commissions in Maryland
What are real estate commissions?
Real estate commissions are the fees paid to agents by homebuyers or sellers for their assistance in successfully completing a property transaction. These fees are typically a percentage of the home’s sale price and are paid when the deal closes.
Who pays the commission?
Historically, sellers have been responsible for covering both their own agent’s commission as well as the buyer’s agent’s fees from the sale proceeds. However, starting August 17, 2024, buyers must now sign a written agreement outlining their agent’s fee before they begin touring homes.
While buyers can still negotiate with the seller to cover their agent’s commission during the offer process, this change means the amount a seller may contribute toward a buyer’s agent commission can vary and is fully negotiable.
Average real estate commission rates in Maryland
In Maryland, commission rates for real estate transactions can fluctuate greatly based on the specific circumstances of the deal and the agreements between the involved parties. Although there are common expectations for commission percentages, these fees are negotiable, allowing buyers and sellers to work with their agents to find a suitable structure.
Several factors, including the property’s location, current market trends, and the services offered by the agent, can influence the final commission rate. This flexibility enables both parties to negotiate and adjust fees according to their budget and goals. Below is a detailed overview of sample commission rates based on median home prices in some of Maryland’s major cities.
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Baltimore
$216,000
$3,240
$6,480
$10,800
Columbia
$510,000
$7,650
$15,300
$25,500
Germantown
$460,000
$6,900
$13,800
$23,000
At Redfin, we strive to provide exceptional value for our customers. That’s why we offer sellers a listing fee as low as 1%.* For buyers, our fees vary depending on location but remain competitive to help your offer stand out and increase your chances of securing the home you want.
Can you negotiate real estate commissions in Maryland?
Definitely! There are no federal or state laws in the U.S. that set commission rates, meaning agents can be open to negotiating lower fees. The flexibility in commission rates depends on the type of transaction, the level of service, and the relationship between the client and agent.
When discussing commission rates with an agent, it’s essential to weigh the quality of service, the marketing approach they plan to use, and their experience in Maryland’s real estate market. For sellers, properties that are highly desirable or expected to sell quickly may provide an opportunity to negotiate a lower commission. Additionally, if an agent is handling both the buyer and seller in a dual agency, there may be room for further discounts since only one agent is involved in the deal.
Tips for a successful negotiation
Shop around: Compare different agents and their commission offers before deciding.
Consider performance-based agreements: You can negotiate higher commissions for quicker sales or better final offers.
Leverage your property’s appeal: If your home is in a sought-after location, agents may be willing to reduce their fees.
Maryland real estate commission FAQs
What are the changes to real estate commission? There are two significant updates to commission practices. First, buyers must agree to their agent’s commission in writing before starting home tours. Second, in many markets, agent compensation is no longer displayed on MLS listings. Learn more about the real estate commission changes here.
How do the changes impact buyers in Maryland? Buyers now need to sign a formal agreement outlining their agent’s commission rate before touring homes. However, you can still request that the seller covers your agent’s commission as part of your offer.
How do the changes impact sellers in Maryland? Sellers will still negotiate with their listing agent regarding the compensation offered to the buyer’s agent, if any. Sellers can review and adjust any commission requests during the offer process.
How do you find a real estate agent in Maryland? Ready to start your buying or selling journey? Connect with a Redfin agent today for expert guidance.
How can you avoid fees? You can sell your home without an agent in Maryland to save on commissions, but be prepared for the extra responsibilities of marketing, scheduling showings, and handling paperwork. FSBO (For Sale by Owner) transactions require more involvement on your part but eliminate agent fees.
*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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