If you’ve ever hired a Realtor to sell your home, you likely paid the commissions of not just that agent, but your buyer’s agent as well. That’s the way real estate worked for years — that is, until the rules from a recent lawsuit settlement came into effect. As a result, buyers must now discuss compensation directly with their agent.
So, what does all of this mean if you’re planning to buy or sell a house in the Buckeye State? Let’s dive into the current state of Realtor fees in Ohio, and how much you can expect to pay.
How much are real estate commissions in Ohio?
The average total real estate commission fee in Ohio is 5.6 percent of a home’s sale price, according to September 2024 data from Clever Real Estate. That’s a bit higher than the national average of 5.32 percent.
The state’s steeper commission rate could be related to the fact that its median house prices are quite a bit lower than the U.S. median. Since commission rates are a percentage of the home’s sale price, agents in areas where home values are lower might charge slightly higher rates (and vice versa). As of August 2024, Redfin data shows that the median sale price of a home in Ohio was $257,700, significantly less than National Association of Realtors’ countrywide median of $416,700.
Based on the above price and percentage, the average total Realtor commission here would be $14,431. But that’s for both agents combined — it used to be that sellers paid this total, but now, depending on the details of each deal, buyers may be responsible for paying their own agents directly.
Clever data shows that the split between how much each agent receives is not perfectly even: Listing agents (who represent the seller) average 2.92 percent, while buyer’s agents average 2.68 percent. For a median-priced $257,700 Ohio home sale, that works out to $7,525 for the listing agent and $6,906 for the buyer’s agent.
Of course, property prices — and, therefore, commissions — can vary depending on where you’re located within Ohio. Here’s how much these fees would amount to in different parts of the Ohio housing market:
| City | Median home-sale price | Total agent commission (5.6%) | Listing agent commission only (2.92%) | Buyer’s agent commission only (2.68%) |
|---|---|---|---|---|
| Cincinnati | $265,000 | $14,840 | $7,738 | $7,102 |
| Cleveland | $125,000 | $7,000 | $3,650 | $3,350 |
| Columbus | $290,000 | $16,240 | $8,468 | $7,772 |
| SOURCES: Clever; Redfin pricing data as of August 2024 | ||||
What’s included in a real estate agent’s commission?
No matter which party they’re representing, agents play many roles in a real estate transaction. “We are there to advocate for our client, advise in negotiations, problem-solve when challenges in a transaction arise and ‘quarterback’ the contract to ensure that all parties are completing their obligations on time,” says Jessica Chodaczek, a Realtor and leader of the Chodaczek Team at LoFaso Real Estate in Brunswick, Ohio.
An agent’s commission accounts for these services. It also covers the other work they take on, the specifics of which depend on whether they’re working with the seller or buyer: “For sellers, representation also includes marketing their property so that it attracts the largest number of buyers, and ultimately, the highest sale price with the best terms,” she says. “When representing buyers, this includes listening to their needs and wants, establishing a search, scheduling showings, advising on potential red flags and crafting an offer.”
Who pays agent commissions in Ohio?
For decades, home sellers in Ohio (and the rest of the country) paid all agent commissions, for both their own agent and their buyers’. But that changed with new rules implemented by the National Association of Realtors after a major lawsuit. “The seller pays their listing agent, always,” says Chodaczek. “When it comes to buyers, the buyer and their agent now decide upfront how much commission the buyer’s agent will earn for representing them. While this is a buyer expense, buyers may choose to ask the seller to pay it when they submit an offer.” In other words, whether the buyer or the seller pays the agent’s commission is up for negotiation, and will differ from one transaction to the next.
Are Ohio real estate agents worth it?
You aren’t required to hire a real estate agent when selling or buying a house in Ohio (or anywhere in the U.S.) — it’s perfectly legal to sell or buy without one.
It’s easy to understand why some people question whether hiring an agent is worth it. Between closing costs and moving expenses, the costs of buying or selling a home can add up quickly — and adding several thousands of dollars more in commissions can be a tough pill to swallow.
However, working with one has several benefits, no matter which side of the transaction you’re on. Real estate agents are licensed professionals with extensive knowledge of their local markets. It’s their job to guide you through the market and achieve your goal, whether that’s selling your home for as much as possible or finding the right new home at the right price. They put their expertise and professional networks to work for you.
Saving on fees
If you have sticker shock from the price of Realtor fees in Ohio, there are ways to reduce or even eliminate them. Here are a few options:
- Negotiate the rate: Before hiring an agent, you may be able to negotiate a lower commission rate. If they’re open to it, you could save hundreds or even thousands of dollars.
- Work with a discount agent: Instead of a traditional real estate agent, consider hiring a low-commission agent. Companies like Clever and Redfin, for example, charge “listing fees” as low as 1 or 1.5 percent. There are also flat-fee agents that charge a fixed rate for their services, rather than a percentage of the home’s final sale price.
- Sell without an agent: It’s possible to sell your house on your own, without any agent representation at all. Known as “for sale by owner,” this option gives you more control and lets you move at your own pace. However, you’ll have to assume all of the work an agent typically performs. And even though you’ll save on a listing agent’s commission, you may still need to cover the buyer’s agent’s fee.
- Sell to a cash homebuyer: If you’re in a rush to move or need the funds from a sale quickly, you might also consider selling to an Ohio cash-homebuying company. These firms make fast, all-cash offers and close deals within weeks — usually without charging any fees or commissions. The trade-off? You’ll likely have to settle for a lower price than you’d get on the open market.
Find an Ohio real estate agent
Whether you’re selling or buying a home in Ohio, working with a knowledgeable local real estate agent can make the process much easier. If you aren’t sure where to find one, start by asking friends, family and neighbors for referrals. You can also search online for well-reviewed agents with experience in your area.
Once you have a list of candidates, make sure to interview multiple candidates before choosing one. Ask specific questions about their background, working style and experience helping clients like you. The more comfortable you feel with an agent, the more likely you are to enjoy a smooth transaction.
Read the full article here
