Who Pays Realtor Fees in Michigan?
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Richard Haddad Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
If you’re getting ready to sell your home in Michigan, you may be looking at recent sale prices in your neighborhood and estimating how much you might take home in proceeds. If this is your first home sale — or it’s been a few years — you may also be wondering: Who pays Realtor fees in Michigan?
This is a valid question, especially since a 2024 National Association of Realtors (NAR) court settlement changed how real estate agent commissions are handled. Sellers are no longer expected by default to pay the buyer’s Realtor fees, a departure from a longtime industry practice.
So, what does this rule change mean for Michigan home sellers? In this post, we’ll explain who typically pays Realtor fees in Michigan, how commissions work in the current market, and when covering a buyer’s agent fee may still be a good strategy. You’ll also find a Michigan agent commission calculator to help you estimate your potential costs.
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Who pays Realtor fees in Michigan?
Immediately after the NAR settlement, some industry observers predicted that buyers would increasingly pay their own Realtor fees, shifting this cost away from sellers. However, that change hasn’t happened at scale. According to a nationwide HomeLight survey, 92% of top agents report that sellers are still paying their buyer’s agent commission.
So if it’s not required, why do Michigan home sellers continue to cover the buyer’s Realtor fees?
Surveyed agents said it boils down to practical marketing in the current housing environment. With high interest rates and affordability challenges cooling markets nationwide, offering to pay the buyer’s agent fee can attract a larger pool of buyers.
In short, paying the buyer’s agent commission and offering other attractive concessions can help you sell your Michigan home in a market where buyers have more bargaining power.
Michigan real estate agent commission calculator
As you plan your home sale, try the Michigan Real Estate Commission Calculator below. You can easily compare selling scenarios using average statewide commission rates.
The average listing agent rate in Michigan is 2.82%, while the average buyer’s agent rate is 3.09%. Combined, that’s about 5.91% of a home’s sale price. On a $300,000 home, that comes to approximately $17,730 if the seller paid both sides.
You can adjust the percentages based on the rates you expect to negotiate. With a quick toggle, you can also compare the cost of paying both agents versus covering only your listing agent’s fee.
Are Michigan sellers required to pay the buyer’s agent?
No. Michigan home sellers are not automatically required to pay a buyer’s agent’s compensation, and there is no state law that would compel sellers to cover this cost.
Still, as HomeLight’s survey found, many sellers choose to offer this incentive because it can increase buyer interest and potentially invite more offers.
While declining to pay the buyer’s Realtor fees in Michigan may seem like a money-saving strategy, it could potentially:
- Reduce interest from buyers who have limited cash available for agent compensation
- Reduce the number of showings or offers
- Increase your overall days on market (DOM)
What you decide to pay can depend on your local market, your home’s price point, and how much competition buyers have for similar homes.
Can you negotiate Realtor fees in Michigan?
Buyer-agent compensation can be negotiated as part of the transaction. This was true even before the NAR settlement.
In Michigan and throughout the U.S., the rate and compensation structure are determined between the parties rather than set at a standard amount.
If you decide to negotiate with your agent, here are some strategies you might consider:
- Simply ask for a lower rate: Some Michigan agents may be willing to accept a lower commission percentage, particularly if you’re selling a higher-priced home or a property that’s expected to attract strong buyer interest.
- Modify the fee structure: You might negotiate a different commission split, or decide to only pay your. You could then offer buyers an alternative concession instead. (More about seller concessions in a minute.)
- Tie the rate percentage to your agent’s performance: You could set up a compensation structure directly connected to your agreed-upon sales goals, where permitted by your brokerage agreement. The agent could get a higher rate if your home sells above the target price, and a lower rate if it sells below it.
- Consider a flat-fee service: Some Michigan companies offer à la carte listing services at a flat rate. However, this option may ultimately require more work from you as the seller. You may not get adequate support with pricing, marketing, negotiations, and paperwork. A flat-fee option is often a better fit for experienced sellers.
Remember: A top-rated, full-service Michigan agent with the right skills can often offset their fee by attracting a stronger offer and managing the transaction from listing through closing.
Here are some additional free tools to help you plan your Michigan home sale:
- Home Value Estimator
- Net Proceeds Calculator
- Best Time to Sell Calculator
- Recently Sold Homes (Michigan)
What other concessions can help a Michigan home sell?
If you decide not to pay the buyer’s Realtor fee — or you simply want to make your listing more competitive — other seller incentives can motivate buyers. Some examples are:
- Closing cost credits to reduce the buyer’s upfront expenses
- Repair credits instead of completing certain repairs before closing
- Home warranties that can offer buyers additional reassurance, particularly with older Michigan homes
- Rate buydowns to temporarily lower the buyer’s mortgage interest rate and monthly payment
A nationwide HomeLight survey found that the most commonly offered seller concessions include repair credits, funds to help with closing costs, and interest rate buydowns.
These incentives can be particularly useful when affordability concerns give Michigan buyers more reason to scrutinize their upfront costs and monthly payment.
In Michigan and the Midwest region, 67% of top agents reported an increase in sale price reductions in their markets last year, indicating that Michigan home sellers need to be prepared to offer buyer incentives and negotiate to close a sale.
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Why a top Michigan agent can net you more proceeds
At first glance, reducing commission expenses may sound appealing. But if higher proceeds are your goal, your final sale price can make an even bigger difference than the percentage of Realtor fees you pay.
HomeLight data shows top agents can sell homes for as much as 10% more than average agents. On a $300,000 Michigan home, that difference could be as much as $30,000 in additional sale proceeds. That’s enough to more than cover the additional 3% buyer’s agent fee.
A leading Michigan agent can help you:
- Understand commission norms and buyer expectations in your local market
- Determine the best concessions to offer based on local demand
- Compare offers based on their overall financial strength, not just the purchase price
- Handle Michigan seller disclosure requirements and other closing details
Michigan’s housing markets can vary considerably, from Detroit and its suburbs to Grand Rapids, Ann Arbor, Lansing, and communities across northern and western Michigan. Working with an agent who understands conditions in your specific area can help you make more informed decisions about pricing, commissions, and concessions.
Fee rules change, but seller strategy always matters
Regardless of how agent commission practices evolve, the basics of selling a home in Michigan remain consistent: Buyers want a home that makes sense for their budget, and sellers want the strongest possible offer and proceeds.
A knowledgeable local agent can help you understand pricing trends in your Michigan market and recommend a fee structure, incentives, and negotiation strategy that fit your sale.
HomeLight’s free Agent Match tool analyzes over 27 million transactions and real customer reviews to connect you with top Michigan agents based on your goals.
For more expert insights and seller resources, visit HomeLight’s Home Seller Resource Center.
Header Image Source: (Gorazarre/DepositPhotos)
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