Average Realtor Fees in Rhode Island | Updated for 2023

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  Written by Lindsay Stefan

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  Edited by Kristy Snyder

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

The average total real estate commission in Rhode Island is 5.12%. This includes a 2.66% listing agent commission and a 2.46% buyer’s agent commission. In Rhode Island, sellers typically cover the real estate commission fees for both agents out of their sale proceeds at closing. 

On the average Rhode Island home price of $402,430, you’d pay $20,604 in realtor fees as a seller.

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

Rhode Island 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 $402,430.

	Average rate	Cost
Listing agent commission	2.66%	$10,705
Buyer’s agent commission	2.46%	$9,900
Total realtor fees	5.12%	$20,604

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How much are realtor fees in Rhode Island?

In Rhode Island, average realtor fees total 5.12%. For the average Rhode Island home priced at $402,430, that translates to a $20,604 commission. The seller typically pays this commission out of the proceeds from the home sale.

Rhode Island’s average commission of 5.12% is less than the national average of 5.37%, and it’s trending downward. In 2021, Rhode Island’s average commission was 5.20%. The drop is due, in part, to Rhode Island’s brisk state market.

If you’re in a hot market, or you don’t need your agent to provide a lot of services, you have a much better chance of negotiating a lower commission. The best way to get a sense of your area’s typical commission is to talk to a few local agents about your property. 

How real Rhode Island agents and brokers set commission rates

Agents we spoke to said their commission rates are very flexible.

“Commission rates depend on how aggressively we want to price the property,” says Joy Riley, principal broker with Westcott Properties. “It’s all about time spent.”

As an example, agents are more willing to take a lower commission if they know a home sale is going to be fast — or an easy lift.

“It’s typical that a seller wants a list of services, and the rate will be commensurate with those services,” says Riley. “So it depends on what your expectations are for representation.” 

In addition to how much work they’ll put in, agents also set their commission rate based on how long the sale will take and where the market may be headed. 

The reason agents have to consider all of these factors is that they don’t take home the full commission when you sell your home. That real estate commission is typically split among four parties:

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

Your listing agent might only pocket around 1.25%. And this isn’t pure profit. Your agent has to pay a long list of professional expenses out of that money, including:

• Taxes: Real estate agents and brokers are considered self-employed by the IRS and pay significant taxes on their commissions
• Association dues: $225–575 annually
• Multiple Listing Service (MLS) fees: $45–200 per month
• State license fees: $130 every two years
• Administrative and support staff: Assistants, transaction coordinators, tax accountants, office managers, etc.
• Marketing: Online advertising, professional photos, signs, and fliers, pre-sale home staging, conducting open houses, etc.

How can I pay less on realtor fees in Rhode Island?

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

As Riley touched on above, agents generally set their rates based on how much time and effort they’ll put into the sale. 

Keep this in mind when it comes time to negotiate commission. It could help you and your agent see eye-to-eye on a discount.

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 Rhode Island, so you don’t have to. Find a Rhode Island 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 Rhode Island 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 Rhode Island.

Other FAQs about Rhode Island 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 2 agents across Rhode Island. 

We also interviewed real estate broker Joy Riley of Westcott Properties.

Sources

• Zillow Home Value Data
• Clever Real Estate Commission Survey Data
• Tax Tips for Real Estate Agents and Brokers, Intuit TurboTax
• Real Estate Renewal Application, State of Rhode Island