Wisconsin Real Estate Commissions: What You Can Expect in 2024
Understanding how real estate commissions work is essential when you’re buying or selling property in Wisconsin. In 2024, national changes brought more transparency to the process, ensuring both buyers and sellers have a clearer understanding of what fees are involved. These updates were made to streamline the transaction process and help all parties make more informed choices about real estate expenses.
Whether you’re entering Wisconsin’s real estate market for the first time or have prior experience, this Redfin guide will help you understand the key points of commissions in today’s market.
Current state of the Wisconsin housing market
Before diving into the specifics of commissions, it’s useful to consider the current state of the housing market in Wisconsin:
Median Home Sale Price
$327,600
Housing Supply
22,319 (+3.3% YoY)
Homes Sold Above List Price
43.3% (-7.7 pts YoY)
Understanding real estate commissions in Wisconsin
What are real estate commissions?
Real estate commissions represent the fees paid to agents for facilitating the purchase or sale of a home. Typically calculated as a percentage of the final sale price, these fees are settled during the closing process.
Who pays the commission?
Historically, the seller has been responsible for paying both their agent’s commission and the buyer’s agent’s fee from the proceeds of the sale. However, as of August 17, 2024, Wisconsin buyers are now required to sign an agreement detailing their agent’s commission before viewing properties.
While buyers can still request that sellers cover their agent’s fee as part of the offer, the final amount is negotiable and can vary depending on the situation.
Average real estate commission rates in Wisconsin
Commission rates aren’t fixed—they vary based on factors like property location, market conditions, and the services provided by the agent. Buyers and sellers are free to negotiate commissions that work for their needs.
Here’s an overview of typical commission costs for some of Wisconsin’s largest cities:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Milwaukee
$225,000
$3,375
$6,750
$11,250
Madison
$408,000
$6,120
$12,240
$20,400
Kenosha
$242,000
$3,630
$7,260
$12,100
At Redfin, sellers can take advantage of competitive rates, with listing fees starting as low as 1%*. For buyers, Redfin’s commissions vary by location but are designed to help you submit strong, competitive offers.
Can you negotiate real estate commissions in Wisconsin?
Absolutely! Wisconsin’s real estate commission rates are negotiable. There are no laws dictating fixed rates, so you can work out an arrangement that suits your particular situation. Factors like the agent’s experience, the property’s location, and market dynamics can all play a role in determining the final fee. Furthermore, in a dual agency situation where a single agent represents both the buyer and the seller, there may be additional opportunities to lower the commission, as only one agent is managing the transaction.
Tips for a successful negotiation
Compare agents: Get proposals from different agents and weigh their services against their rates.
Incentive-based fees: Consider offering bonuses for quick sales or above-listing-price offers.
Leverage your property’s appeal: Homes in high-demand areas can sometimes lead to reduced commission rates during negotiations.
Wisconsin real estate commission FAQs
What are the changes to real estate commission? New rules now require buyers to agree to their agent’s fee in writing before starting home tours. Additionally, in some markets, the buyer’s agent’s compensation may not appear on MLS listings. Learn more about the real estate commission changes here.
How do the changes impact buyers in Wisconsin? Buyers must agree to their agent’s commission in writing before touring homes, though they can still ask sellers to contribute toward the fee during the offer process.
How do the changes impact sellers in Wisconsin? Sellers continue to negotiate with their listing agent regarding how much, if any, commission will be offered to the buyer’s agent, depending on the terms of the deal.
How do you find a real estate agent in Wisconsin? Redfin’s local agents are here to support you through your buying or selling journey. Contact us to get started today.
How can you avoid fees? If you’re looking to save on commission fees, you could opt for the for-sale-by-owner (FSBO) route. However, this will require you to manage every aspect of the sale on your own, including marketing, 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.
The post Wisconsin Real Estate Commissions: What You Can Expect in 2024 appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
