When buying or selling a home in Maryland, it’s essential to have a clear understanding of real estate commissions for proper budgeting and negotiation. In 2024, new rules across the U.S. have reshaped how these commissions are presented, offering greater transparency for both buyers and sellers. These updates are designed to make the process more transparent, helping individuals make well-informed choices when dealing with real estate fees.
Whether you’re a first-time buyer or an experienced seller, this Redfin guide will walk you through the details of Maryland’s real estate commissions and what to anticipate in today’s market.
Current state of the Maryland housing market
Before we jump into what real estate commissions in Maryland are, let’s first take a look at the state’s housing market.
| Median Home Sale Price | $436,100 |
| Housing Supply | 17,866 (+10% YoY) |
| Homes Sold Above List Price | 41.9% (-3.8 pts YoY) |
Understanding real estate commissions in Maryland
What are real estate commissions?
Real estate commissions are the fees paid to agents by homebuyers or sellers for their assistance in successfully completing a property transaction. These fees are typically a percentage of the home’s sale price and are paid when the deal closes.
Who pays the commission?
Historically, sellers have been responsible for covering both their own agent’s commission as well as the buyer’s agent’s fees from the sale proceeds. However, starting August 17, 2024, buyers must now sign a written agreement outlining their agent’s fee before they begin touring homes.
While buyers can still negotiate with the seller to cover their agent’s commission during the offer process, this change means the amount a seller may contribute toward a buyer’s agent commission can vary and is fully negotiable.
Average real estate commission rates in Maryland
In Maryland, commission rates for real estate transactions can fluctuate greatly based on the specific…