Whether you’re entering the housing market in Utah to buy or sell, it’s crucial to grasp how real estate commissions work in the state. Recent changes in 2024 have brought more transparency and communication regarding commission fees in real estate transactions, giving both buyers and sellers more control over costs.
This comprehensive guide will navigate you through the essential aspects of real estate commissions in Utah, providing insights for both newcomers and experienced individuals in the market.
Current State of the Utah Housing Market
Before delving into the specifics of real estate commissions, it’s beneficial to understand the current state of the Utah housing market:
| Median Home Sale Price | $549,700 |
| Housing Supply | 16,224 (+10.2% YoY) |
| Homes Sold Above List Price | 21.9% (-3.5 pts YoY) |
Comprehending Real Estate Commissions in Utah
What are Real Estate Commissions?
Real estate commissions are fees paid to agents for facilitating home purchases or sales, usually calculated as a percentage of the final sale price and paid at closing.
Who Pays the Commission?
Traditionally, sellers cover both their agent’s and the buyer’s agent’s commission. However, as of August 17, 2024, buyers must specify their agent’s commission before property viewings, with flexibility for negotiation during the offer process.
Average Real Estate Commission Rates in Utah
In Utah, commission rates vary based on factors like location, market conditions, and agent services. Here’s a breakdown of typical commission costs in some of Utah’s major cities:
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Salt Lake City | $535,500 | $8,033 | $16,065 | $26,775 |
| West Valley City | $490,000 | $7,350 | $14,700 | $24,500 |
| West Jordan | $500,000 | $7,500 | $15,000 | $25,000 |
Redfin offers competitive listing fees for sellers starting at just 1%*. We work to keep buyer fees affordable and help your offer stand out in the market.
Negotiating Real Estate Commissions in Utah
Real estate commissions in Utah are negotiable, with agents open to adjusting rates based on transaction details, services provided, and property appeal. Factors like local market expertise and agent representation may influence negotiations for lower fees.
Tips for Successful Negotiation
- Consult Several Agents: Speak with multiple agents to compare services and rates.
- Offer Incentives: Include performance bonuses based on selling speed or offers above listing price.
- Use Property Appeal: Leverage desirable locations or high demand properties for negotiating lower fees.
Utah Real Estate Commission FAQs
Changes to Real Estate Commission: In 2024, significant changes were introduced, including buyers signing a document outlining agent fees before home viewings and non-disclosure of buyer agent commissions in MLS listings.
Impact on Buyers in Utah: Buyers must now agree to their agent’s commission upfront, with negotiation opportunities during the offer process.
Impact on Sellers in Utah: Sellers determine their contributions towards buyer agent fees, negotiating these amounts during offer submissions.
Finding a Real Estate Agent in Utah: Redfin agents guide you through transactions, ensuring a clear understanding of the process for buyers and sellers.
Avoiding Fees: Selling without an agent (FSBO) can bypass commission fees, but requires full responsibility for the sale process from marketing to negotiations.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. Learn more here.
