The New Norm for Real Estate Commissions in Oregon: A 2024 Update
Understanding real estate commissions is crucial when navigating the home-buying or selling process in Oregon. Recent updates introduced in 2024 have revolutionized the communication of these commissions nationwide, offering greater transparency to both buyers and sellers. These changes aim to empower individuals to make well-informed decisions regarding real estate fees.
Whether you’re a first-time buyer or a seasoned seller, this guide from Redfin will assist you in navigating Oregon’s real estate commissions and preparing for the current housing market trends.
The Current State of the Oregon Housing Market
Before delving into the intricacies of real estate commissions, it’s essential to get an overview of the Oregon housing market:
| Median Home Sale Price | $512,500 |
| Housing Supply | 19,025 (+12.1% YoY) |
| Homes Sold Above List Price | 26.2% (-3.7 pts YoY) |
Understanding Real Estate Commissions in Oregon
What Are Real Estate Commissions?
Real estate commissions are fees paid to agents for their role in facilitating successful real estate transactions. Typically paid at closing, these fees are calculated as a percentage of the home’s sale price.
Who Pays the Commission?
Traditionally, sellers covered the commission for both their agent and the buyer’s agent from the sale proceeds. However, as of August 17, 2024, buyers are now required to agree to their agent’s fee in writing before starting house tours. This change allows for more flexibility and negotiation in determining who bears these costs.
While buyers can request the seller to cover their agent’s commission as part of an offer, this shift emphasizes the importance of clarity and negotiation in real estate transactions.
Average Real Estate Commission Rates in Oregon
Commission rates in Oregon vary depending on factors like property location, market conditions, and agent services. While negotiable, understanding typical expectations can facilitate productive discussions. Here’s a breakdown of estimated commission fees based on median home prices in some of Oregon’s largest cities:
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Portland | $529,950 | $7,949 | $15,899 | $26,498 |
| Eugene | $465,000 | $6,975 | $13,950 | $23,250 |
| Salem | $434,000 | $6,510 | $13,020 | $21,700 |
At Redfin, we prioritize offering consumers the best value. Our listing fees start at just 1%*, while our buyer fees remain competitive to help your offer stand out in the market.
Can You Negotiate Real Estate Commissions in Oregon?
Absolutely! With no set commission rates by law, agents are open to negotiation based on services required and transaction specifics. Consider factors like agent expertise, marketing strategies, and local market conditions when negotiating. In situations of dual agency, where one agent represents both parties, there may be flexibility in commission agreements.
Tips for a Successful Negotiation
- Interview multiple agents to compare rates and services.
- Discuss performance incentives, like offering higher commission for faster sales or better prices.
- Leverage your property’s desirability for potential lower commissions in a competitive market.
Oregon Real Estate Commission FAQs
What are the changes to real estate commission? As of 2024, buyers must agree to their agent’s fees in writing before touring homes. Additionally, in markets, MLS listings no longer display buyer agent compensation.
How do the changes impact buyers in Oregon? Buyers must sign a commission agreement with their agent before home tours but can negotiate for the seller to cover the buyer’s agent’s fee during the offer process.
How do the changes impact sellers in Oregon? Sellers must still decide on compensation for buyer’s agents and negotiate these terms as part of the offer.
How do you find a real estate agent in Oregon? Ready to begin your home search or sell your house? Redfin can connect you with an experienced agent to guide you through the process.
How can you avoid fees? Selling without an agent in Oregon can save on commission fees, but entails additional effort in marketing and managing paperwork.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee not included if the seller chooses to cover it. Learn more here.
Concluding Thoughts
Understanding real estate commissions and the recent changes in Oregon’s market is crucial for making informed decisions as a buyer or seller. Stay informed, be ready to negotiate, and leverage the expertise of agents to navigate the dynamic world of real estate.
