What is the Average Realtor Commission in Michigan?

Caption: Detroit, Michigan Realtor Commission Rate As a buyer or seller in the real estate market, it's important to understand the costs involved. One significant expense is the realtor commission. In Michigan, real estate agents...

detroit michigan realtor commission rate Caption: Detroit, Michigan Realtor Commission Rate

As a buyer or seller in the real estate market, it's important to understand the costs involved. One significant expense is the realtor commission. In Michigan, real estate agents are paid a commission for their services when helping clients buy or sell a property. Knowing the average realtor commission in Michigan can help you plan and budget effectively.

National Average Realtor Commission in 2022?

Real estate commission rates vary across the United States. In 2022, the average national residential commission rate is approximately 5.49% of a home's closing sale price. However, it's crucial to note that rates can differ from state to state and even among individual agents.

Realtor Fees in Michigan

The typical real estate commission rate for realtors in Michigan is currently around 6%. This rate is slightly higher than the national average. However, it's important to consider the context. The average sale price of a home in Michigan is about half the national average, which results in lower fees for sellers.

On average, a home in Michigan sells for about $225,800. Therefore, if you sell your home for the average price, you can expect to pay approximately $13,500 for a real estate agent's services.

Save on your Michigan Realtor Commission

While some experienced real estate agents may not negotiate their commission rates, newer agents or those working in competitive markets may be more open to negotiation. One strategy is to interview multiple agents and compare their rates. If you find an agent you like but they have a higher fee, you can mention that another agent offered a lower rate. In many cases, agents are willing to match their competitors' fees to secure a partnership.

Another way to potentially lower your commission is by generating additional business for your agent through referrals. Agents may be more open to compromising on their fees if they see the potential for future business.

However, it's essential to remember that the commission rate should not be the sole determining factor. Choose an agent based on their level of service, expertise, and reputation. While a low commission rate may seem attractive, it's important to consider the overall quality of service you will receive.

What is flat-fee real estate?

Flat-fee real estate is an alternative to traditional commission-based pricing. Some agents work for a flat fee, which is often significantly cheaper than the average commission. This pricing model can potentially save buyers and sellers a significant amount of money.

It's important to note that flat-fee agents may not provide the same level of service as traditional agents. They typically do not invest as much time, money, and effort into your sale or purchase because their fee is fixed. Therefore, thorough research is crucial when vetting a flat-fee agent to ensure they meet your expectations.

michigan realtor commission on house Caption: Michigan Realtor Commission on a House

Who pays realtor fees in Michigan?

In Michigan, sellers typically pay for the realtor fees or commissions. These costs are factored into the sale price of the property. However, it's worth considering that the buyer indirectly contributes to these fees, as the higher commission rate can push up the home's sale price.

Most real estate transactions involve two agents: the seller's agent and the buyer's agent. The fees are typically split evenly (50-50) between these two agents.

The Realtor Commission in Michigan for an Average Home

Michigan's real estate market varies across different locations and property types. The median sales price of a home in Michigan is around $206,000. With an average realtor commission rate of 5.93%, the total commission paid for an average home would amount to approximately $12,216.

This commission is usually split equally between the listing agent (seller's agent) and the buyer's agent. Each would receive $6,108. Additionally, the real estate broker for each agent may also take a percentage of the commission.

What salary does a real estate agent earn in Michigan?

Real estate agent salaries in Michigan can vary widely based on factors such as experience, sales history, and location. On average, realtors in Michigan earn around $86,000 per year, according to recent data. However, this figure can vary depending on the region and individual agent's performance.

Rentals and Leases

Who pays realtor fees for rentals in Michigan?

When it comes to rentals, the landlord or property owner typically pays the realtor fees in Michigan. Landlords hire real estate agents to find quality renters, and the commission is usually equivalent to one month's rent.

In some areas, the fees may be split between the listing agent and the tenant's agent to promote competition and attract more prospective tenants.

How much do you pay a realtor for a lease option in Michigan?

For lease options in Michigan, the amount you pay a realtor is typically 5% of the total rent over the entire lease term. However, this percentage may vary for leases longer than ten years.

Realtor commission in Michigan's main cities

Real estate agent salaries in Michigan can vary across different cities. Here's a breakdown of some key cities in Michigan:

Grand Rapids, MI Real Estate Commission

In Grand Rapids, realtors earn an average salary of about $87,000 per year. The commission rate typically ranges around 6%. Grand Rapids offers a vibrant city environment, with strong economic growth and attractive rental prices.

Ann Arbor, MI Real Estate Commission

In Ann Arbor, real estate agents earn an average commission of 6% on a sale, with competitive rates potentially going lower to 4.99%. Ann Arbor is a desirable location known for its low crime rate, ample space, and diverse housing options.

Warren, MI Real Estate Agent Commission

The average realtor commission in Warren, Michigan, falls between 5-6%. Warren is a thriving city with a small-town charm and a range of attractions, including the General Motors technical center and US army research facilities.

Detroit, MI Real Estate Agent Commission

In Detroit, real estate broker commission rates typically average around 5.7%. As the largest city in Michigan, Detroit has a diverse real estate market where newer agents often offer lower commission rates to stand out in the competitive landscape.

Michigan real estate: Do sellers pay all realtor fees?

In Michigan, sellers generally pay for all realtor fees or commissions. These costs are factored into the sale price of the property. However, in a hot seller's market, negotiations may occur, and these fees could potentially be shifted to the buyer's closing costs.

Who pays realtor fees for sale by owner in Michigan?

If you're working with a real estate agent but decide to purchase a for-sale-by-owner (FSBO) property, who pays your realtor commission? The answer isn't always straightforward. In many cases, the seller still pays the agent's fee. To clarify your options, review your agent contract, if you have one, and ensure the fee payment terms are clearly stated before making or considering an offer.


When selecting a real estate agent, it's essential to conduct thorough research to find the best agent for your needs. Look for agents with reputable track records, competitive fees, and relevant experience. FastExpert offers a database of the top real estate agents in the country, making it easier for you to find the perfect match for your real estate needs.

Finding the best agent

Michigan offers excellent opportunities for homeownership and investment properties. With family-friendly regions, solid economies, and a strong college student presence, the state has a lot to offer. Finding the right real estate agent doesn't have to be complicated. Look for an agent who has in-depth knowledge of the local market and strong connections. FastExpert's extensive database can help you find the best agent to guide you through your real estate journey in Michigan. Start your search now.