Real Estate Commissions And Fees In Michigan

If you’re preparing to buy or sell a home in the Great Lakes State, there’s a good chance you’re thinking about hiring a real estate agent to help you through the process — most people do. And if that’s the case, you’re probably also wondering how much an agent’s services might cost.

Real estate agents earn a commission when a deal closes, whether they’re representing the buyer or the seller. Historically, though, both agents’ commissions were paid by the home seller. But a recent lawsuit settlement has changed that, and now, buyers may have to cover their own agent’s fee directly. If you’re curious to find out how much all this will cost you, keep reading to learn more about how real estate agent commissions in Michigan work.

How much are real estate commissions in Michigan?

Real estate agent commissions typically total 5.86 percent of a home’s purchase price in Michigan, according to data from Clever Real Estate. That’s much higher than the national average of 5.32 percent, but luckily, homes in the state tend toward the affordable side. For a median-priced Michigan home — which cost $249,100 as of February 2025, per Redfin — 5.86 percent comes out to $14,591.

However, that’s for both agents’ commissions combined. According to Clever, commissions in Michigan are split evenly between the listing agent (who lists the home, representing the seller) and the buyer’s agent, with each party earning 2.93 percent — or $7,299 on a median-priced home. So if you’re only paying your own agent, the cost is less daunting.

It’s also important to consider that housing prices vary throughout Michigan, so your total commission costs will depend on home values in your area. Based on the percentages above, here’s what you’d pay for commissions in different parts of the Great Lakes State.

Sources: Clever, Redfin

What’s included in a real estate agent’s commission?

Whether you’re buying or selling, an agent can help you navigate the transaction confidently — including the mountain of paperwork required for closing — and help ensure that you get the best possible deal.

If you hire an agent to buy a house in Michigan, they’ll likely start by looking for houses that meet your budget, preferences and location requirements. Thanks to their professional networks and access to tools like the multiple listing service (MLS), they can usually find properties you wouldn’t have discovered on your own. A buyer’s agent will also set up showings, help you submit an offer, negotiate with the seller and lead you through the closing process.

If you’re a seller, your agent’s commission goes toward several services, including researching local real estate comps to understand how much nearby properties like yours are selling for. Based on that, your agent can help you settle on an appropriate asking price for your home and add the listing to the MLS. They’ll also market the listing, host open houses or private viewings, help you select an offer and negotiate the contract terms.

Who pays agent commissions in Michigan?

Until recently, home sellers across the country generally paid their agent and the buyer’s agent from the proceeds of their sale. That changed in 2024, when agent-compensation guidance was updated as part of a federal lawsuit settlement. Today, commissions are negotiated in advance, and each party may pay their own agents directly. However, buyers can still ask sellers to cover their agent’s commission (or other closing costs) as a concession. Sellers aren’t required to say yes, but many will agree to help move the deal along.

No matter which side of the transaction you’re on, it’s important to understand who is responsible for paying each agent’s commission, and how much they’ll be paid. Make sure these details are laid out very clearly in your contract.

Are Michigan real estate agents worth it?

There’s no legal requirement to work with an agent when buying or selling a home in Michigan (or any other state), so if you’d rather save your money, you’re welcome to. However, most people opt for pro help: According to the National Association of Realtors’ latest Profile of Home Buyers and Sellers, 88 percent of buyers and 90 percent of sellers used an agent to handle the transaction.

Agents have a deep level of local real estate knowledge. They use this expertise to help buyers find homes that align with their needs, or to help sellers find the right buyer and maximize the earnings from their sale. And when there’s so much money at stake, expert guidance can really make a difference — especially if you’re a first-time buyer or you live in a very competitive market.

Saving on fees

In a real estate transaction, some expenses — like taxes — are set in stone, but many others are open to negotiation. Here are a few ways to reduce the costs of buying or selling a home in Michigan.

• Negotiate commissions: Like many other things in real estate, agent commissions are negotiable. It’s worth asking if there’s any wiggle room with their rate before signing a contract — a lower percentage might save you thousands, particularly on a higher-priced home.
• Work with a discount agent: Another way to save on commissions is by working with a discount real estate broker. Agents with companies like Clever and Redfin often charge just 1 to 1.5 percent in commission — a substantial reduction compared to Michigan’s average of 2.93 percent.
• Go the FSBO route: Sellers can always opt to represent themselves in what’s known as a “for sale by owner” or FSBO sale. If you take this approach, you’ll handle a listing agent’s typical duties, including developing the listing, marketing the property, showing it to interested buyers and negotiating with buyers. FSBO sales take a lot of time and effort, but you’ll avoid paying a listing agent’s commission.
• Sell to a cash homebuyer: Another way to avoid an agent’s commission is by working with one of the many cash homebuying companies in Michigan. These businesses make fast, all-cash offers for homes in almost any condition, and they often charge no fees at all. The downside, though, is that they also don’t pay full market value for the homes they buy, so you usually sacrifice some profit.

Find a Michigan real estate agent

Ready to find a real estate agent in Michigan? Reach out to friends, family, colleagues or neighbors to see if they have any recommendations. You can also discover local agents by reading online reviews or looking up the agents listed on “for sale” yard signs in your neighborhood. Before making a decision, interview multiple agents to get an idea of their communication style, experience and knowledge of your local market.