Montana Real Estate Commissions: What You Can Expect in 2024
Understanding Montana’s real estate commissions is vital if you’re planning to buy or sell a home in the state. Recent updates in 2024 brought nationwide changes designed to provide greater transparency, making it easier for both buyers and sellers to grasp the fees involved. These changes aim to simplify the process and help everyone make more informed decisions about real estate costs.
Whether you’re stepping into the Montana housing market for the first time or have experience selling property, this guide from Redfin will walk you through the key things to know about commissions in the current market.
Current state of the Montana housing market
Before exploring commission specifics, it’s helpful to get a feel for how Montana’s housing market is performing:
Median Home Sale Price
$521,000
Number of Homes Sold
-2.9% YoY
Number of Homes for Sale
+23.3% YoY
Understanding real estate commissions in Montana
What are real estate commissions?
Real estate commissions are fees paid to agents for their role in facilitating a sale or purchase of a property. Usually calculated as a percentage of the final sale price, these fees are paid at closing.
Who pays the commission?
Traditionally, sellers paid both their agent’s commission and the buyer’s agent’s fee from the sale proceeds. However, as of August 17, 2024, Montana buyers must sign an agreement that outlines their agent’s fee before beginning home tours.
While buyers can still ask sellers to pay their agent’s fee as part of an offer, the amount a seller may contribute can vary, and is entirely negotiable.
Average real estate commission rates in Montana
In Montana, there are no fixed commission rates, as they depend on factors like the property’s location, the market conditions, and the agent’s services. Buyers and sellers are free to negotiate these fees based on their specific needs.
Below is a look at typical commission rates based on median home prices in some of Montana’s largest cities:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Billings
$374,000
$5,610
$11,220
$18,700
Missoula
$575,000
$8,625
$17,250
$28,750
Great Falls
$304,500
$4,568
$9,135
$15,225
Redfin works to provide sellers with great value, offering listing fees as low as 1%*. For buyers, our rates vary by location, but are designed to be competitive and help you submit a strong offer.
Can you negotiate real estate commissions in Montana?
Yes, commission rates are fully negotiable! Since there are no legal mandates on commission rates, buyers and sellers can work with their agents to find a fee structure that fits their situation. Variables such as the agent’s expertise, property location, and market trends can influence negotiations. Dual agency deals, where the same agent represents both buyer and seller, could also allow for reduced fees since only one agent is involved.
Tips for a successful negotiation
Talk to multiple agents: Get quotes from various agents and compare their services.
Performance-based fees: Consider negotiating bonuses for faster sales or higher prices.
Leverage your property’s strengths: Homes in desirable areas may give you the upper hand in negotiating lower fees.
Montana real estate commission FAQs
What are the changes to real estate commission? New regulations require buyers to sign off on their agent’s fee before they start touring homes. Additionally, in many markets, the buyer’s agent’s compensation is no longer displayed on MLS listings. Learn more about the real estate commission changes here.
How do the changes impact buyers in Montana? Buyers must agree to their agent’s commission in writing before home tours, though they can still ask sellers to cover the commission as part of an offer.
How do the changes impact sellers in Montana? Sellers continue to negotiate with their listing agent on what commission, if any, will be offered to the buyer’s agent. The specifics can be adjusted depending on the offer received.
How do you find a real estate agent in Montana? Redfin’s local agents are here to assist you in your home buying or selling journey. Contact us today to get started.
How can you avoid fees? Selling your home without an agent through a for-sale-by-owner (FSBO) method can save you money on commissions. However, it requires you to handle everything, from marketing to paperwork and showings.
*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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