Understanding Real Estate Commissions in Illinois: A Comprehensive Guide for Buyers and Sellers
New changes implemented in 2024 have revolutionized the real estate commission structure in Illinois, providing clarity and control for both buyers and sellers in transactions.
Current State of the Illinois Housing Market
Get insights into the median home sale price, housing supply, and market trends in Illinois before delving into real estate commissions:
| Median Home Sale Price | $301,100 |
| Housing Supply | 45,070 (-1.1% YoY) |
| Homes Sold Above List Price | 39.4% (-3.4 pts YoY) |
Essential Insights on Real Estate Commissions in Illinois
Understanding Real Estate Commissions
Real estate commissions are fees paid to agents for their services in home transactions, usually calculated as a percentage of the final sale price.
Commission Payment Details
While traditionally sellers cover agent commissions, recent changes require buyers to agree on their agent’s fee before touring homes, allowing for negotiation on both sides.
Sellers may still be asked to cover the buyer’s agent’s commission, but the final amount is flexible and can be negotiated.
Average Real Estate Commission Rates in Illinois
Commission rates in Illinois are not fixed, varying based on factors like location, market conditions, and agent services. Explore typical rates in major cities to understand the potential costs:
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Chicago | $364,000 | $8,700 | $17,400 | $29,000 |
| Aurora | $315,000 | $24,375 | $48,750 | $81,250 |
| Joliet | $293,000 | $11,625 | $23,250 | $38,750 |
Redfin offers competitive rates, starting at 1%* for sellers, while buyer fees are tailored for market competitiveness.
Negotiating Real Estate Commissions in Illinois
Flexibility in negotiating real estate commissions is key, with agents open to adjusting rates based on various factors. Understanding how to negotiate effectively can benefit both buyers and sellers in transactions.
Tips for Successful Negotiation
- Interview Multiple Agents: Compare services and rates to find the best fit.
- Consider Performance Bonuses: Incentivize agents for exceptional outcomes.
- Utilize Home Appeal as Leverage: Leverage demand and attractiveness of the property for negotiation.
Illinois Real Estate Commission FAQs
Changes to Real Estate Commission: Stay informed about recent changes requiring buyers to agree on agent fees prior to home tours, with buyer agent fees no longer displayed on MLS listings in some markets.
Impacts on Buyers and Sellers: Understand the implications for buyers and sellers, empowering informed decision-making during transactions.
Finding a Real Estate Agent: Connect with Redfin agents for expert guidance and support throughout your buying or selling journey.
Avoiding Fees: Explore the option of selling without an agent to bypass commission fees, though it requires hands-on management of the selling process.
*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.
