connecticut real estate commissions: what you can expect in 2024
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By Ana De Guzman | Published on September 30, 2024
When entering Connecticut’s housing market, whether you’re buying or selling, understanding real estate commissions is vital for your financial planning and negotiation strategy. In 2024, changes to how commissions are handled were rolled out across the country, aiming to increase transparency. These updates aim to help buyers and sellers make more informed choices throughout the real estate process.
This guide will help you break down real estate commissions in Connecticut, clarify the recent changes, and offer tips on navigating these fees with confidence.
Current state of the Connecticut housing market
Before diving into commissions, it’s helpful to take a quick look at the key stats in Connecticut’s housing market:
Understanding real estate commissions in Connecticut
What are real estate commissions?
Real estate commissions are the fees paid to agents for their role in facilitating the sale or purchase of a home. These fees are typically paid at the time of closing and are calculated as a percentage of the sale price.
Who pays the commission?
Historically, sellers covered the commissions for both their own agent and the buyer’s agent. However, from August 17, 2024, new regulations in Connecticut require buyers to agree to their agent’s commission fee in writing before they start touring homes.
While buyers can still ask the seller to cover these fees as part of their offer, the amount that sellers will pay for the buyer’s agent has become more flexible and open to negotiation.
Average real estate commission rates in Connecticut
Commission rates in Connecticut aren’t set in stone—they vary depending on the transaction, the agent, and the negotiation between the parties. While general expectations for commission rates exist, the actual amount paid is always negotiable based on the specifics of the sale. Factors like the home’s location, market trends, and the services offered by the agent can all play a role.
Here’s a look at typical commission amounts based on median home prices in some of Connecticut’s largest cities:
Can you negotiate real estate commissions in Connecticut?
Yes, you can absolutely negotiate commission rates in Connecticut. Since there are no laws that set commission amounts, you have the flexibility to work out terms with your agent. The outcome of your negotiation could depend on factors like the scope of services offered, the nature of the transaction, and your relationship with the agent.
When discussing commissions, consider the agent’s experience, marketing strategies, and knowledge of the local market. Sellers with highly marketable homes may have more room to negotiate lower commissions, especially if the property is expected to sell quickly. In dual agency situations, where one agent represents both the buyer and seller, you may also be able to reduce fees since only one agent is involved.
Tips for a successful negotiation
Compare multiple agents: Before settling on an agent, compare their services and commission structures.
Consider incentives: Explore options like performance-based bonuses for faster sales or higher selling prices.
Leverage your property’s appeal: Agents may be willing to lower fees for homes that are highly desirable in the market.
Connecticut real estate commission FAQs
What are the changes to real estate commission? Two significant changes have been introduced: buyers now have to sign a written agreement outlining their agent’s commission before touring homes, and in many areas, 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 Connecticut? Buyers in Connecticut must agree to their agent’s commission in writing before they begin home tours. That said, they can still request that sellers cover these fees as part of their offer.
How do the changes impact sellers in Connecticut? Sellers continue to negotiate with their listing agents about the commission they are willing to offer a buyer’s agent. They also have the flexibility to review and negotiate any requests included in the buyer’s offer.
How do you find a real estate agent in Connecticut? Whether you’re buying or selling, Redfin has agents ready to help. Get in touch with a Redfin agent today to get started.
How can you avoid fees? Selling a home without an agent (also known as For Sale by Owner, or FSBO) is one way to avoid paying commission fees. However, it comes with extra responsibilities, such as marketing the property, conducting showings, and handling the paperwork.