Washington Real Estate Commissions: What You Can Expect in 2024
When you’re navigating the Washington housing market—whether as a buyer or seller—understanding real estate commissions is a key aspect of your financial planning and negotiation strategy. In 2024, significant changes to commission structures were introduced nationwide, making real estate fees more transparent for both parties. These adjustments are designed to ensure better-informed decision-making throughout the home buying and selling process.
This Redfin guide will help you understand Washington real estate commissions, what the recent changes mean for you, and how to navigate these costs effectively.
Current state of the Washington housing market
Before diving into real estate commissions, let’s look at some key figures in Washington’s current housing market:
Median Home Sale Price
$644,100
Housing Supply
28,335 (+19.1% YoY)
Homes Sold Above List Price
28.8% (-5.1 pts YoY)
Understanding real estate commissions in Washington
What are real estate commissions?
Real estate commissions are fees paid to agents for facilitating the sale or purchase of a home. They are typically paid at closing and are calculated as a percentage of the property’s sale price.
Who pays the commission?
Traditionally, sellers paid both their agent’s commission and the buyer’s agent’s fees. However, starting on August 17, 2024, buyers in Washington must agree to their agent’s fee in writing before they begin touring homes.
Although buyers can still ask the seller to cover their agent’s commission during the offer process, the amount sellers are willing to pay is now more flexible and negotiable.
Average real estate commission rates in Washington
In Washington, commission rates can vary depending on the specifics of the sale, the agents involved, and the negotiations between the parties. While there are common expectations for commission rates, the actual fees are not fixed and can be tailored to the needs of both the buyer and the seller.
Factors such as the home’s location, market conditions, and the services provided by the agent can influence the final commission. Here’s a look at sample commission rates based on typical median home sale prices in Washington’s major cities:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Seattle
$845,000
$12,675
$25,350
$42,250
Spokane
$386,598
$5,799
$11,598
$19,330
Tacoma
$490,000
$7,350
$14,700
$24,500
At Redfin, we work to ensure that you’re getting the most value possible, offering listing fees as low as 1%* for sellers. For buyers, our fees vary by location, but they remain competitive to help you stand out in the market.
Can you negotiate real estate commissions in Washington?
Yes! Real estate commission rates in the U.S. are not fixed, meaning buyers and sellers have the freedom to negotiate with their agents. Depending on the transaction type, the scope of services, and the relationship with the agent, there may be flexibility in the fees.
When negotiating, you’ll want to consider the agent’s level of expertise, their marketing strategies, and their familiarity with the local market. Sellers might be able to negotiate lower rates if their property is expected to sell quickly or is located in a desirable area. Dual agency situations, where one agent represents both the buyer and seller, could also lead to lower commissions since only one agent is involved.
Tips for a successful negotiation
Compare different agents and their fee structures before making a choice.
Discuss incentives, such as performance-based bonuses for a quicker sale or a better final price.
Use your property’s desirability as leverage, as agents might accept lower fees for highly marketable homes.
Washington real estate commission FAQs
What are the changes to real estate commission? Two major changes have altered the way commissions are handled: First, buyers must now sign an agreement with their agent regarding commission rates before touring homes. Second, in many markets, buyer 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 Washington? Buyers are required to agree to their agent’s commission in writing before they start home tours. Despite this, they can still request that the seller cover their agent’s fees in the final offer.
How do the changes impact sellers in Washington? Sellers still have the opportunity to negotiate with their agent regarding the commission they’re willing to offer the buyer’s agent, if any. These terms are agreed upon during the offer process.
How do you find a real estate agent in Washington? If you’re ready to buy or sell, Redfin can help. Reach out to a Redfin agent today to get started.
How can you avoid fees? Selling a home without an agent (known as FSBO or for sale by owner) is an option, but it requires the seller to handle all aspects of the sale, including marketing, showings, and 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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