The average total real estate commission in North Dakota is 5.66%. This includes a 2.96% listing agent commission and a 2.70% buyer’s agent commission. In North Dakota, sellers typically cover the real estate commission fees for both agents out of their sale proceeds at closing.
North Dakota sellers pay an average of $13,712 in realtor fees, based on the average North Dakota home price of $242,261.
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 North Dakota. We’ll also explain why North Dakota commissions are what they are (and offer up some tips that could help you save).
North Dakota 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 $242,261.
|Listing agent commission||2.96%||$7,171|
|Buyer’s agent commission||2.70%||$6,541|
|Total realtor fees||5.66%||$13,712|
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How much are realtor fees in North Dakota?
In North Dakota, the average real estate commission is 5.66% — a bit higher than the national average of 5.37%.
Since there’s no standard fee, it’s up to you and your listing agent to decide how much you’ll pay at closing. Knowing the average gives you a good starting point for budgeting and negotiating.
The total realtor commission is split between your listing agent and the buyer’s agent. You pay your listing agent for marketing your home and coordinating the sale; you pay the buyer’s agent for bringing you a buyer and coordinating the buyer’s end of the transaction.
ND real estate commissions can change over time with market trends, as well. While the total commission was closer to 6% in 2021, it decreased to 5.66% in 2022. With such an intense seller’s market in 2022, sellers didn’t need to offer a 3% buyer’s agent commission to bring prospective buyers to their homes, driving the overall commission down.
Agents we spoke to on this topic said they expect the buyer’s agent commission to creep up again in 2023, with sellers struggling to sell as quickly as they did a year ago due to rising interest rates.
How real North Dakota agents and brokers set commission rates
North Dakota real estate agents and brokers can set their commission rates at whatever they want, and most agents don’t hold fast to a single rate.
When setting commission rates, agents take into account a few key factors:
- What’s competitive in the local market. Agents want to make as much profit as they can while still keeping their prices competitive with area realtors.
- How much work it will take to sell a specific home. If your home needs lots of work before it can be sold, or if it requires a very specific type of buyer, an agent might charge a higher commission. But if your home is reasonably priced and turn-key ready, your commission might be lower.
- How much business they have. If an agent has tons of clients coming in, they may not need to charge high commissions to make a profit.
Most importantly, they’ll consider their bottom line. Since the total commission is split between the buyer’s agent, the seller’s agent, and each of their brokers, each agent only takes home a small slice of the earnings on each transaction.
They also have lots of overheard costs to cover with their commission earnings, including:
- Taxes: Real estate agents must pay a self-employment tax of 15.3% on all commission earned
- Association Dues: $195-$745 annually
- MLS fees: $180+ annually
- State license fees: $125 annually
- Administrative staff: Assistants can help with bookkeeping, scheduling, and other day-to-day operations
- Marketing costs: Professional photos, advertising, open houses, and staging
How can I save on realtor fees in North Dakota?
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
Many real estate agents are open to some level of negotiation. The simplest way to start the conversation is to ask for their rates and how you might be able to save on commission.
Some agents even offer multiple service packages at different rates, so you can choose the price and level of service that’s right for you.
Ultimately, the commission should feel fair to everyone involved.
Some people find negotiating 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 North Dakota, so you don’t have to. Find a North Dakota 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 North Dakota 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.
Other FAQs about North Dakota real estate commissions
How much are closing costs in ND?
On average, sellers pay 2.76% of their home’s final sale price in closing costs. In North Dakota, that’s around $7,856. However, these costs don't include realtor fees. Learn what you can expect in real estate commission, in addition to your closing costs.
How do I become a real estate agent in North Dakota?
To become a real estate agent in North Dakota, you must complete a criminal background check, a 90-hour pre-licensure course, and an exam. You must also pay a license fee of $150. Learn more about how much real estate agents make in commissions in North Dakota.
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 two agents in North Dakota.
- Zillow Home Value Data
- Clever Real Estate Commission Survey Data
- Cooling down the economy: What this means for the housing market in North Dakota, KX News
- Self-employment tax, Internal Revenue Service
- Association Fees and Dues, Grand Forks Association of Realtors
- North Dakota Real Estate Commission