Ohio Real Estate Commissions: What You Can Expect in 2024
Real estate commissions play a significant role in the buying and selling of homes in Ohio, impacting your overall financial planning. In 2024, new rules were implemented to increase transparency, allowing both buyers and sellers a clearer understanding of costs and greater flexibility in negotiations.
Whether you’re a first-time buyer or a seasoned seller, this guide will walk you through the essential details regarding real estate commissions in Ohio.
Current state of the Ohio housing market
Before diving into real estate commissions, it’s useful to have an overview of Ohio’s current housing market:
Median Home Sale Price
$257,700
Housing Supply
39,192 (+16.4% YoY)
Homes Sold Above List Price
36.1% (-5.5 pts YoY)
Understanding real estate commissions in Ohio
What are real estate commissions?
Real estate commissions are fees paid to agents for facilitating a successful home sale. These fees, which are typically a percentage of the sale price, are paid at the closing stage and compensate agents for their work during the transaction.
Who pays the commission?
Traditionally, the seller has been responsible for covering both the listing agent’s and the buyer’s agent’s commissions. However, as of August 17, 2024, buyers must now sign an agreement specifying their agent’s commission before they begin home tours.
Although buyers can still negotiate with sellers to have them cover the buyer’s agent’s fee, the new rules introduce flexibility on the amount, if any, the seller will cover. Sellers are no longer automatically expected to pay the buyer’s agent’s commission, as they are entirely negotiable.
Average real estate commission rates in Ohio
Real estate commission rates in Ohio can vary depending on factors like market conditions, property location, and the specific agreements made between buyers, sellers, and agents. Although there are standard expectations, commissions are negotiable, allowing the parties involved to adjust fees as needed.
Several factors, including the local market, the services provided by the agent, and the property’s location, can affect commission rates. Below is a breakdown of average commission rates for Ohio’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
Columbus
$290,000
$4,350
$8,700
$14,500
Cleveland
$125,000
$1,875
$3,750
$6,250
Cincinnati
$265,500
$3,983
$7,965
$13,275
At Redfin, we offer sellers listing fees starting as low as 1%*, and our competitive buyer fees, which vary by location, help make your offer more attractive in Ohio’s housing market.
Can you negotiate real estate commissions in Ohio?
Yes, you can! Real estate commissions are not set in stone, which means there’s room for negotiation. Several factors, including the services your agent offers and the relationship you’ve established, can influence the final commission rate.
When negotiating, it’s crucial to consider the agent’s services, including their marketing strategy and knowledge of the local market. Additionally, if the same agent is representing both buyer and seller in a dual agency situation, there may be potential for further commission reductions since only one agent is involved.
Tips for a successful negotiation
Speak with multiple agents to compare their services and fees.
Consider proposing a commission structure that rewards quicker sales or higher sale prices.
Leverage your property’s desirability, particularly if it’s in a sought-after area, to negotiate lower rates.
Ohio real estate commission FAQs
What are the changes to real estate commission? Two key updates were introduced: buyers must agree to their agent’s fee in writing before home tours begin, and in certain areas, buyer agent commission rates are no longer visible on the MLS. Learn more about the real estate commission changes here.
How do the changes impact buyers in Ohio? Buyers are now required to sign an agreement regarding their agent’s fee before touring homes. However, they can still negotiate with sellers to cover these fees when making an offer.
How do the changes impact sellers in Ohio? Sellers can still collaborate with their listing agent to determine if they will contribute to the buyer’s agent commission. Sellers should be ready to discuss these costs with prospective buyers.
How do you find a real estate agent in Ohio? If you’re looking to buy or sell a home in Ohio, working with a Redfin agent ensures you receive expert support throughout the process.
How can you avoid fees? One way to avoid commission fees is by selling your home through the For Sale By Owner (FSBO) route. However, this requires managing every aspect of the sale on your own, which can be time-consuming and complex without the help of a professional.
*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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