Average Realtor Fees in Minnesota | Updated for 2023

• 

  Written by Jon Stubbs

• 

  Edited by Kristy Snyder

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

The average total real estate commission in Minnesota is 5.41%. This includes a 2.73% listing agent commission and a 2.68% buyer’s agent commission. In Minnesota, sellers typically cover the real estate commission fees for both agents out of their sale proceeds at closing. 

On the average Minnesota home price of $307,201, you’d pay $16,620 in real estate commission fees as a seller.

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 Minnesota. We’ll also explain why Minnesota commissions are what they are (and offer up some tips that could help you save). 

Minnesota 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 $307,201.

	Average rate	Cost
Listing agent commission	2.73%	$8,387
Buyer’s agent commission	2.68%	$8,233
Total realtor fees	5.41%	$16,620

List with the best local agents for just 1.5% (seriously)

Clever Real Estate matches you with vetted local agents who work for just a 1.5% listing fee when you find them through Clever’s free service. 

Clever has 132 vetted agents across Minnesota from major brands like RE/MAX and Coldwell Banker. You compare options, choose the best fit, and get the same service and support for up to half the usual rate! 

Clever is free to use and there’s no obligation to work with any of the agents you’re matched with.

See agents near you!

How much are realtor fees in Minnesota?

In Minnesota, average total realtor fees are 5.41%. This is typically paid by the seller out of the proceeds from their sale. 

Minnesota’s average commission is higher than the U.S. national average of 5.37%. But averages don’t tell the whole story. Minnesota commissions vary widely from city to city; for example, the average Minneapolis commission is 6%, or more than a half-point higher than the statewide average.

Overall, Minnesota commissions are trending downwards. The average statewide commission in 2021 was 5.70%.

The drop in average commission is likely due to Minnesota’s hot market, which saw a 5% increase in home values despite a slowdown in the national market. Agents are more willing to work for a lower commission in a hot market since they know they can quickly close the sale and move onto the next one. 

Michael McGivern of Bridge Realty, a Twin Cities-based agent, saw this dynamic play out in real time in Minnesota’s hot real estate market.

“In 2021 and into 2022, I saw a lot of buyer’s broker’s compensations in the 2–2.5% range, which told me agents were taking lower listing side commissions to “win” a listing,” says McGivern. “Or they were offering a lower buyer’s side commission because they knew the buyer’s side was so desperate to get their clients into a home that they’d take whatever they could get.”

How real Minnesota agents and brokers set commission rates

Agents we talked to said their commission rates are definitely flexible. 

The amount of commission an agent charges is based largely on how much time and effort they think the sale will take. So a faster, easier sale might come with lower-than-average commission, while a longer, more difficult sale might come with higher commission.

Some agents avoid this ambiguity by offering sellers a menu of commission rates upfront.

“I offer sellers three options with commissions at five, six, and seven percent with different features at each level (like a car wash),” says McGivern. “This allows the sellers to tell me what they value and sets them up for a great experience. Most people still choose six percent, but they appreciate being able to dictate what I charge, not the other way around.”

We should also note that agents make less than many people realize. Typically, a real estate commission is split between:

• The listing agent
• The buyer’s agent
• The listing agent’s broker
• The buyer’s agent’s broker

So in Minnesota, your listing agent doesn’t pocket 5.41% of the final sale price — rather, they’re taking home a quarter of that. 

Realtors must invest a lot of their own money upfront in services, and they aren’t reimbursed until the deal closes and they get their share of the commission. They set their commission rates knowing that their earnings have to cover costs like:

• Taxes: Real estate agents are classified as self-employed by the IRS, and must pay sizable taxes on their commissions.
• Association dues: Up to $1,000 annually
• Multiple Listing Service (MLS) fees: $45–200 per month
• State license fees: $100 initially, $60 to renew annually
• Administrative and support staff: Transaction coordinators, office managers, accountants, assistants, social media specialists, schedulers, etc.
• Marketing: Professional home staging, digital advertising, signage fees, professional real estate photos, hard copies of fliers and other literature, conducting open houses, etc.

How can I save on realtor fees in Minnesota?

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

Most agents have flexible commission rates — here are a few strategies you can use to negotiate a discount on your commission.

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 Minnesota, so you don’t have to. Find a Minnesota 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 Minnesota 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 Minnesota.

Other FAQs about Minnesota 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 20 agents across Minnesota. 

We also interviewed Michael McGivern of Bridge Realty in Minneapolis–Saint Paul.

Sources

• Clever Real Estate Commission Survey Data
• Internal Revenue Service
• Minneapolis Area Realtors
• Minnesota Department of Commerce