The average total real estate commission in South Dakota is 5.66%. This includes a 2.96% listing agent commission and a 2.70% buyer’s agent commission. In South Dakota, sellers typically cover the real estate commission fees for both agents out of their sale proceeds at closing.
South Dakota sellers pay an average of $16,092 in realtor fees, based on the average South Dakota home price of $284,308.
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 South Dakota. We’ll also explain why South Dakota commissions are what they are (and offer up some tips that could help you save).
South 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 $284,308.
|Listing agent commission||2.96%||$8,416|
|Buyer’s agent commission||2.70%||$7,676|
|Total realtor fees||5.66%||$16,092|
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How much are realtor fees in South Dakota?
Home sellers in South Dakota should expect to pay an average of 5.66% in total realtor commission, compared to the U.S. national average of 5.37%.
Commission in South Dakota can vary from one part of the state to another, especially if the real estate market is particularly hot or cold in a certain region. In markets where homes are selling quickly, commission tends to go down, since agents are making more sales. Even within the same town, certain agents may charge more, so shop around.
How real South Dakota agents and brokers set commission rates
Agents typically set their commission based on what competing agents in the area are charging. But there’s usually some flexibility built into their rates.
For example, realtors will consider the amount of work that needs to go into selling a home when setting their commission. If the house is going to need an extensive marketing campaign, the agent will need to stick to a higher rate to recoup the cost.
The market also plays a role in how South Dakota agents set their commission rate. In South Dakota, home prices are up slightly by 1.5% from one year ago. However, the number of homes sold has dropped by 21.3%. This means that agents have fewer homes to sell, so their total number of commissions has gone down.
In a cooling market like this, some realtors may be hesitant to reduce their commission, since they need to maximize their earnings on each sale.
Keep in mind that listing agents and buyer’s agents each split their commission with their brokers. So this means that a hypothetical 6% commission would be split four ways, with each party taking home just 1.5%.
Realtors also need to budget for a variety of expenses before they even get their commission. In South Dakota, some typical realtor expenses include:
- Taxes: Most real estate brokers and agents are considered self-employed and must pay taxes on their transaction earnings each year
- Association dues: $150 annually
- Multiple Listing Service (MLS) fees: $300 annually
- State license fees: $125 every two years
- 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 South 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
Before you begin negotiating with a real estate agent, consider the time and effort they’ll put in to sell your home. In a highly desirable neighborhood where homes are in high demand, you could argue that selling your home will be easy money.
However, if you’re selling a property in a remote location with fewer buyers, your agent will likely have to invest more time and money into selling the house. In these cases, the realtor might not want to reduce their 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 South Dakota, so you don’t have to. Find a South 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 South 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 South Dakota real estate commissions
Who pays real estate commission in South Dakota?
In South Dakota, the seller traditionally pays both the listing agent and the buyer's agent fees. These fees aren't paid until the home sells, and they're taken out of the proceeds at closing. Learn more about how real estate commission works in South Dakota.
Can you negotiate realtor fees in South Dakota?
Yes, you can usually negotiate realtor fees. Before approaching your agent, remember they have upfront costs for marketing and promoting your property. If your home needs a lot of work to sell, your realtor may be hesitant to lower their fees. Learn more about how to negotiate realtor fees.
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 across South Dakota.