New Jersey Real Estate Commissions: What You Can Expect in 2024
When buying or selling a home in New Jersey, being informed about real estate commissions is key to managing your budget and negotiating effectively. In 2024, changes across the U.S. introduced new rules on how real estate commissions are disclosed, making it easier for buyers and sellers to understand these costs. These changes promote greater transparency, helping individuals make informed decisions about real estate fees.
Whether you’re buying your first home or a seasoned seller, this guide will walk you through what to expect when dealing with real estate commissions in New Jersey.
Current state of the New Jersey housing market
Before diving into real estate commission details, let’s take a quick look at the current housing market in New Jersey.
| Median Home Sale Price | $556,300 |
| Housing Supply | 28,001 (+4.7% YoY) |
| Homes Sold Above List Price | 58.7% (-0.42 pts YoY) |
Understanding real estate commissions in New Jersey
What are real estate commissions?
Real estate commissions refer to the fees paid to agents by homebuyers or sellers once a transaction is completed. These fees are typically a percentage of the sale price and are paid at closing.
Who pays the commission?
Traditionally, the seller covered both their agent’s commission and the buyer’s agent’s fees. However, a significant change starting on August 17, 2024, requires buyers to sign an agreement detailing their agent’s fee before beginning home tours.
While buyers can still negotiate for the seller to cover their agent’s commission as part of the offer, the amount can vary and is entirely negotiable between both parties.
Average real estate commission rates in New Jersey
In New Jersey, commission rates vary depending on factors like the property’s location and market conditions. While there are general expectations for these fees, they are not set in stone and can be negotiated. Variables like the services provided by the agent and the specifics of the property will influence the commission structure.
Below are sample commission amounts for different percentage rates based on median home prices in some of New Jersey’s largest cities:
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Newark | $532,500 | $7,988 | $15,975 | $26,625 |
| Jersey City | $699,000 | $10,485 | $20,970 | $34,950 |
| Paterson | $540,000 | $8,100 | $16,200 | $27,000 |
At Redfin, we prioritize delivering exceptional value to consumers. We offer sellers a listing fee starting as low as 1%*, making it an affordable option for those looking to maximize their profits. For buyers, our fees vary by location but are designed to stay competitive, helping your offer stand out and increasing your chances of success in a competitive market.
Can you negotiate real estate commissions in New Jersey?
Yes, real estate commissions are negotiable. There are no federal or state laws dictating commission rates, so the final amount is often up for discussion. Depending on the property and the services required, agents may be open to adjusting their rates.
It’s important to consider the services your agent provides, including their marketing plans and local expertise, when discussing fees. In some cases, properties that are in high demand or likely to sell quickly can be used as leverage for negotiating lower rates. If a single agent represents both parties (known as dual agency), there may also be opportunities for further discounts.
Tips for a successful negotiation
- Interview multiple agents to compare commission rates and service offerings.
- Consider performance-based incentives, such as offering a higher commission for faster sales or better sale prices.
- Leverage your property’s appeal if it’s in a desirable area, which could motivate agents to lower their fees.
New Jersey real estate commission FAQs
What are the changes to real estate commission? Two key updates have reshaped commission rules. First, buyers now need to agree to their agent’s fee in writing before touring homes. Additionally, in many markets, buyer agent compensation is no longer displayed on MLS listings. Learn more about the real estate commission changes here.
How do the changes impact buyers in New Jersey? Buyers must sign an agreement detailing their agent’s fee before starting home tours. However, you can still ask the seller to cover these costs as part of your offer.
How do the changes impact sellers in New Jersey? Sellers will continue to work with their listing agent to decide if and how much they will offer to the buyer’s agent as compensation, if any. Sellers should be prepared to review any buyer requests and negotiate terms accordingly.
How do you find a real estate agent in New Jersey? Ready to start your home buying or selling journey? Connect with a Redfin agent today for expert assistance.
How can you avoid fees? One option to avoid commission fees is selling your home without an agent, also known as For Sale By Owner (FSBO). However, this requires the seller to handle everything from marketing and showings to paperwork, which can be challenging without professional support.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.
The post New Jersey Real Estate Commissions: What You Can Expect in 2024 appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
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