Idaho Real Estate Commissions: What You Can Expect in 2024

Understanding real estate commissions is essential when buying or selling a home in Idaho, as it plays a key role in budgeting and negotiations. In 2024, new changes were introduced across the U.S. to make real estate commissions more transparent. These updates are designed to give both buyers and sellers a clearer understanding of fees, helping them make better-informed decisions.Whether you’re a first-time buyer or an experienced seller, this Redfin guide will help you navigate Idaho’s real estate commission structure and the current market.Current state of the Idaho housing marketBefore we explore real estate commissions in Idaho, it’s important to take a look at the current housing market trends in the state.Median Home Sale Price$481,800Housing Supply10,390 (+0.3% YoY)Homes Sold Above List Price12.2% (-3.5 pts YoY)Understanding real estate commissions in IdahoWhat are real estate commissions?Real estate commissions are fees paid to agents by homebuyers or sellers for their assistance in completing a property transaction. These fees, typically a percentage of the home’s sale price, are settled at closing.Who pays the commission?Historically, sellers would cover both their agent’s and the buyer’s agent’s commissions from the sale proceeds. However, starting on August 17, 2024, buyers are required to agree to their agent’s commission in writing before they begin touring homes.Buyers can still negotiate for the seller to cover their agent’s fees as part of the offer, but this change means the amount a seller might pay is now more flexible, and is entirely negotiable. Average real estate commission rates in IdahoReal estate commission rates in Idaho vary based on the specifics of each transaction and the agreements made between parties. While there are general expectations for commission rates, they are negotiable, giving buyers and sellers the chance to work with their agents to find the best arrangement.Factors like location, market conditions, and the agent’s services can impact the commission amount. This flexibility allows both parties to discuss and tailor fees to fit their budgets and objectives. Here’s a breakdown of estimated commission rates based on the median home prices in Idaho’s largest cities.CityMedian Home Sale Price1.5% Real Estate Commission3% Real Estate Commission5% Real Estate CommissionBoise$490,000$7,350$14,700$24,500Meridian$527,450$7,912$15,824$26,373Nampa$405,900$6,089$12,177$20,295At Redfin, we focus on providing the best value for our customers. For sellers, we offer listing fees starting as low as 1%.* For buyers, our fees vary by location but are designed to be competitive, helping your offer stand out and improve your chances of securing a home.Can you negotiate real estate commissions in Idaho? Yes, you can! There are no laws in the U.S. that set commission rates, which means agents are often open to negotiation. The final rate may depend on the nature of the transaction, the services provided, and the relationship with the agent.When negotiating, it’s essential to consider the agent’s level of service, their marketing strategy, and their experience in the local market. Sellers may also have more negotiating power if their property is particularly attractive or expected to sell quickly. Additionally, in a dual agency situation—where the same agent represents both buyer and seller—there may be room to lower the commission since only one agent is involved.Tips for a successful negotiationCompare multiple agents and their commission rates before making a decision.Discuss performance incentives, like a higher commission if the home sells faster or at a better price.Use your property’s desirability as leverage—agents may accept lower commissions if they expect a quick sale.Idaho real estate commission FAQsWhat are the changes to real estate commission? Two significant updates have impacted real estate commissions. First, buyers now need to agree to their agent’s fees in writing before touring homes. Second, in many markets, 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 Idaho? Buyers must now sign an agreement with their agent about their commission rate before home tours begin. However, you can still negotiate for the seller to cover your agent’s fee as part of your offer.How do the changes impact sellers in Idaho? Sellers will continue to negotiate with their listing agent on the compensation offered to the buyer’s agent, if any. The terms can be reviewed and adjusted based on the buyer’s offer.How do you find a real estate agent in Idaho? If you’re ready to buy or sell a home, Redfin can help. Get in touch with a Redfin agent to start your real estate journey.How can you avoid fees? Selling a home without an agent, known as a For Sale by Owner (FSBO) transaction, can save on commission costs. However, FSBO sales require more effort from the seller, such as handling marketing, showings, and legal paperwork on their own. *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 Idaho Real Estate Commissions: What You Can Expect in 2024 appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.