When stepping into the Massachusetts real estate market, it’s important to be aware of how real estate commissions work, whether you’re buying or selling a property. In 2024, new nationwide policies reshaped how commissions are structured, aiming to make them more transparent. These changes are designed to empower both buyers and sellers to make smarter financial decisions.
This guide will break down the essentials of real estate commissions in Massachusetts, explain the recent changes, and offer advice on how to manage these costs effectively.
Current state of the Massachusetts housing market
Before diving into commission details, it’s helpful to know the state of the housing market in Massachusetts:
| Median Home Sale Price | $642,300 |
| Housing Supply | 16,430 (+10.4% YoY) |
| Homes Sold Above List Price | 52.2% (-7.8 pts YoY) |
Understanding real estate commissions in Massachusetts
What are real estate commissions?
Real estate commissions are fees paid to agents for their role in facilitating a home sale or purchase. These fees are typically a percentage of the final sale price and are paid at closing.
Who pays the commission?
Traditionally, sellers paid for both their agent’s commission and the buyer’s agent’s fee. But as of August 17, 2024, new rules in Massachusetts require buyers to agree in writing to their agent’s commission before touring homes.
Although buyers can still request that the seller cover these fees as part of their offer, the exact amount is now more flexible and can be negotiated.
Average real estate commission rates in Massachusetts
Commissions in Massachusetts are not fixed; they can vary based on the transaction, the agent involved, and negotiations. Several factors, including the location of the property, market conditions, and the services provided by the agent, can influence commission rates.
Below is a table of typical commissions based on median home prices in Massachusetts’s largest cities:
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Boston | $800,000 | $12,000 | $24,000 | $40,000 |
| Cambridge | $938,000 | $14,070 | $28,140 | $46,900 |
| Quincy | $553,500 | $8,303 | $16,605 | $27,675 |
At Redfin, we aim to provide excellent value with listing fees as low as 1%* for sellers. For buyers, our fees differ by location but remain competitive to help your offer stand out in the market.
Can you negotiate real estate commissions in Massachusetts?Â
Real estate commissions are negotiable in Massachusetts, as they are not regulated by law. This gives both buyers and sellers room to discuss commission rates with their agents. The result of these negotiations will depend on factors like the scope of the agent’s services, the type of transaction, and the existing relationship between the agent and the client.
In negotiations, you’ll want to think about the agent’s experience, their marketing efforts, and their understanding of the local market. Sellers who have homes that are expected to sell quickly may be able to negotiate lower rates. Dual agency deals—where one agent represents both the buyer and seller—could also lead to reduced commissions since only one agent is involved.
Tips for a successful negotiation
- Shop around: Compare services and commission rates from multiple agents before making a decision.
- Consider performance incentives: Negotiate bonuses for faster sales or higher closing prices.
- Leverage property appeal: Highly desirable homes may give sellers more power to negotiate lower fees.
Massachusetts real estate commission FAQs
What are the changes to real estate commission? Two key changes have taken effect: buyers must now sign an agreement detailing their agent’s commission before touring homes, and in many markets, buyer agent compensation is no longer visible on MLS listings. Learn more about the real estate commission changes here.Â
How do the changes impact buyers in Massachusetts? Buyers must agree in writing to their agent’s commission before home tours start. However, they can still ask the seller to cover the commission when making an offer.
How do the changes impact sellers in Massachusetts? Sellers now have more control in negotiating with their agents about the commission they’re willing to offer to the buyer’s agent. They also have the flexibility to review and discuss any commission requests that come with the buyer’s offer.Â
How do you find a real estate agent in Massachusetts? If you’re ready to enter the Massachusetts housing market, whether to buy or sell, Redfin’s experienced agents are ready to assist. Reach out today to get started.
How can you avoid fees? Yes, selling a home without an agent—also known as For Sale by Owner (FSBO)—can save you from paying commission fees. However, this option requires the seller to take on the full responsibility of marketing, showing the home, and managing the necessary paperwork.
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*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.
