North Dakota Real Estate Commissions: What You Can Expect in 2024
Real estate commissions in North Dakota play a crucial role in the home-buying and selling experience, shaping your overall financial outlook. In 2024, new rules were introduced to promote clarity, giving both buyers and sellers more transparency around commission costs and greater room for negotiation.
Whether you’re stepping into the real estate market for the first time or are a seasoned homeowner, this guide will help you understand the key aspects of real estate commissions in North Dakota.
Current state of the North Dakota housing market
Before diving into commission details, it’s helpful to look at the current state of the housing market in North Dakota:
Median Home Sale Price
$289,000
Number of Homes Sold
-9.64% YoY
Number of Homes for Sale
-17.3% YoY
Understanding real estate commissions in North Dakota
What are real estate commissions?
Real estate commissions are payments made to agents following the successful sale of a property. These fees, generally calculated as a percentage of the sale price, are paid at the time of closing and serve as compensation for the agent’s work throughout the process.
Who pays the commission?
Historically, sellers have been responsible for covering both their listing agent’s and the buyer’s agent’s commissions. However, as of August 17, 2024, buyers are now required to sign an agreement specifying their agent’s commission before touring homes.
Buyers can still ask the seller to cover their agent’s commission during the offer process. However, this change allows for variability in the amount a seller may pay for a buyer’s agent, making it completely negotiable.
Average real estate commission rates in North Dakota
In North Dakota, commission rates vary depending on factors like the local market, location of the property, and the specific agreements made between agents and clients. While certain commission rates are common, they’re not set in stone and can be negotiated.
The table below shows estimated real estate commissions in North Dakota’s largest cities based on median home prices:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Fargo
$295,000
$4,425
$8,850
$14,750
Bismarck
$344,900
$5,174
$10,347
$17,245
Grand Forks
$290,000
$4,350
$8,700
$14,500
At Redfin, we’re dedicated to delivering exceptional value to our clients. That’s why we offer sellers listing fees starting at just 1%.* For buyers, our fees vary by location but are designed to remain competitive, helping your offer stand out and increasing your chances of success.
Can you negotiate real estate commissions in North Dakota?
Absolutely! Real estate commissions are not fixed and are open to negotiation. Several factors, including the services your agent provides and the nature of your relationship, can impact the final rate.
When discussing commissions with your agent, consider their local expertise and marketing strategies. If the agent is representing both sides of the transaction, as in a dual agency scenario, there’s a chance to reduce the commission even further since only one agent is involved.
Tips for a successful negotiation
Speak with multiple agents to compare the services they offer and the fees they charge.
Propose a commission structure that rewards the agent for a quicker or higher-value sale.
If your property is in a high-demand area, use that to your advantage in negotiating lower commission rates.
North Dakota real estate commission FAQs
What are the changes to real estate commission? Two main updates in 2024: Buyers now need to agree on their agent’s commission in writing before house tours begin, and in some areas, the MLS no longer publicly displays buyer agent commission rates. Learn more about the real estate commission changes here.
How do the changes impact buyers in North Dakota? Buyers must sign an agreement outlining their agent’s fee before they can start touring properties. However, buyers can still negotiate with sellers to cover these costs when making an offer.
How do the changes impact sellers in North Dakota? Sellers continue to work with their listing agent to determine how much they’re willing to contribute, if anything, to the buyer’s agent’s commission. They can negotiate this as part of the offer process.
How do you find a real estate agent in North Dakota? If you’re ready to buy a home in North Dakota, Redfin is here to assist. Connect with a Redfin agent to get started.
How can you avoid fees? Selling a home without an agent in North Dakota can help you avoid commission fees, but for sale by owner (FSBO) transactions demand more effort from the seller. This includes managing marketing, conducting showings, and handling 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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