Average Realtor Fees in Michigan | Updated for 2023

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  Written by Jon Stubbs

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  Edited by Kristy Snyder

In this guide: How much you’ll pay | Average realtor fees | How agents set rates | How to save on commission | FAQ | Our research

The average total real estate commission in Michigan is 5.65%. This includes a 2.77% listing agent commission and a 2.88% buyer’s agent commission. In Michigan, sellers typically cover the real estate commission fees for both agents out of their sale proceeds at closing. 

Michigan sellers pay an average of $11,873 in realtor fees, based on the average Michigan home price of $327,514.

Realtor commission rates vary considerably by region, city, or even neighborhood. The agent and brokerage you choose, as well as the specifics of your sale — like your home’s value, location, and condition — are also factors.

This guide breaks down how much commission sellers can expect to pay in Michigan. We’ll also explain why Michigan commissions are what they are (and offer up some tips that could help you save). 

Michigan real estate commission: How much will you pay?

Here’s what you can expect to pay in realtor commission based on the average home price of $327,514.

	Average rate	Cost
Listing agent commission	2.77%	$5,821
Buyer’s agent commission	2.88%	$6,052
Total realtor fees	5.65%	$11,873

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How much are realtor fees in Michigan?

If you’re selling a home in Michigan, expect to pay 5.65% in total realtor fees. That’s more than the national average of 5.37%. This commission includes both the listing agent’s commission and the buyer’s agent commission, which are both paid by the seller in Michigan.

Keep in mind, these are averages — actual commission rates vary from region to region. You might pay more commission in Detroit and the surrounding suburbs than you would in rural Northern Michigan. Agents may also charge more in commission if your home is more difficult to sell, regardless of location.

Boyd Rudy of MiRelo Team Powered by Keller Williams Living says he usually sticks to the industry standard rates, but that could change depending upon the situation.

“I typically take into consideration the complexity of the sale, the current market value of the property, and the level of service I am providing,” says Rudy.

Housing market trends can also affect rates. In Michigan, the sale price of homes has remained fairly stable over the past year, but the number of homes sold has dipped by more than 27%. Houses are also sitting on the market for nearly two weeks longer than they did a year ago. 

The current state of the market means realtors are putting in more time to sell fewer homes, so some might be hesitant to reduce their fees. But a booming market doesn’t necessarily equal lower rates, either.

“Demand for certain products or services can drive up commission rates,” says Rudy. Historical commission rates prove Rudy’s point — the average total commission was 6% in Michigan in 2021 when the market was hot, compared to 5.65% in today’s cooler market.

How real Michigan agents and brokers set commission rates

The agent we spoke to said his rates were somewhat flexible, but he keeps his fees within a range near the average real estate commission rates in Michigan. Rates can go up or down based on how much work will go into selling the house. 

Since the agents involved in a sale don’t keep 100% of their commission, they need to charge a little more. Commission is split with each of their brokers. So on a 6% commission, the listing agent, the buyer’s agent, and each of their brokers get 1.5%.

Rudy also considers his overhead expenses before he counts his take-home pay. 

“The regular expenses that need to be covered with commissions include advertising and marketing, administrative costs, and the costs associated with the actual transaction,” says Rudy. 

In addition to the costs Rudy mentioned, additional fees Michigan realtors have to pay include: 

• Taxes: Real estate agents must pay a self-employment tax of 15.3% on all commission earned
• Association dues: $150 yearly
• MLS fees: $300 yearly
• State license fees: $88–108 every three years

How can I save on realtor fees in Michigan?

While it may take some outside-the-box thinking, there are a few ways you can save on realtor fees:

• Negotiate with a traditional real estate agent or broker
• Work with a discount real estate broker
• Sell without a realtor

Negotiate with a traditional realtor

Before negotiating with a realtor, consider how difficult your home is going to be to sell. If you can argue that the sale will go quickly, an agent might be willing to lower their rate. 

For evidence, turn to recent sales in the neighborhood. If homes similar to yours have recently sold quickly for their asking price, you can assume yours will, too. One way to find out how quickly homes are selling is by looking at a comparative market analysis, which your realtor can provide. 

Negotiating can be awkward and uncomfortable. If you’d rather avoid it, you can find an agent through Clever Real Estate. They’ve already pre-negotiated a 1.5% listing fee with experienced agents in Michigan so you don’t have to. Find a Michigan agent for less.

Work with a discount real estate broker

Some brokerages offer discounted realtor fees up front. These companies can help you save money, but some come with risks or worse-than-average customer service. Do your research to understand what you’ll get for the discounted fee. See how we ranked discount real estate brokers in your area based on savings, customer reviews, and our experience mystery shopping with each company.

To save an average of $7,000 on your listing fee without sacrificing service, Clever Real Estate is your best option.

Sell without a realtor

The ultimate way to save on realtor fees is to sell without a realtor — though we don’t recommend this to most Michigan sellers.

You’ll avoid paying a listing commission, but you’ll have to do all of the work of a listing agent on your own. Plus, you’ll still want to pay a full buyer’s agent commission to incentivize other agents to show your home to their buyers.

Learn more about how to sell a house without a realtor in Michigan.

Other FAQs about Michigan real estate commissions

Research methodology

We regularly survey our pool of 14,000 partner agents nationwide on the commission rates they use for buying and selling. These data points are averages based on responses we’ve received from 16 agents across Michigan. 

We also interviewed Boyd Rudy, an agent with MiReloTeam Powered by Keller Williams Living in Livonia, MI.

Sources

• Redfin – Michigan Housing Market
• Michigan.gov – Licensing and Regulatory Affairs
• Clever Real Estate Commission Survey Data
• Internal Revenue Service