Real estate commissions are a crucial part of the home-buying and selling process in Delaware, affecting your overall budget. In 2024, new rules were introduced to make these fees more transparent, empowering both buyers and sellers with clearer insights into costs and more flexibility to negotiate. These changes aim to simplify transactions for everyone involved.
Whether you’re new to the real estate market or a seasoned seller, this guide will break down the key details about real estate commissions in Delaware.
Current state of the Delaware housing market
Before diving into the specifics of real estate commissions, it’s helpful to have a snapshot of the current housing market in Delaware.
| Median Home Sale Price | $365,700 |
| Housing Supply | 2,054 (+14.4% YoY) |
| Homes Sold Above List Price | 36.4% (-6.7 pts YoY) |
Understanding real estate commissions in Delaware
What are real estate commissions?
Real estate commissions are fees paid to agents when a property is successfully bought or sold. These fees, calculated as a percentage of the sale price, are settled at closing and serve as compensation for the agent’s work throughout the transaction.
Who pays the commission?
Traditionally, sellers have covered both the listing agent and buyer’s agent’s fees. However, starting August 17, 2024, buyers must now sign a written agreement outlining their agent’s commission before they begin touring homes.
While buyers can still negotiate with sellers to cover their agent’s commission, these new rules provide more flexibility, making the amount open to negotiation. Sellers are no longer automatically responsible for covering the buyer’s agent fee.
Average real estate commission rates in Delaware
The commission rates in Delaware can vary based on factors like market conditions, the nature of the sale, and the agreements made between the buyer, seller, and agents. While there are standard expectations, these rates are flexible, allowing all parties to tailor fees to their needs.
Several aspects, such as the property’s location, current market demand, and the agent’s services, can influence commission rates. Buyers and sellers have the freedom to negotiate these fees based on their unique situations. Here’s a breakdown of typical commission rates in Delaware’s major cities based on median home prices:
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Wilmington | $235,000 | $3,525 | $7,050 | $11,750 |
| Dover | $287,500 | $4,313 | $8,625 | $14,375 |
| Newark | $425,000 | $6,375 | $12,750 | $21,250 |
At Redfin, we’re committed to offering great value. For sellers, we offer listing fees starting as low as 1%*, while our competitive fees for buyers, varying by location, are designed to help your offer stand out, increasing your chances of success in Delaware’s real estate market.
Can you negotiate real estate commissions in Delaware?
Absolutely! Commission rates are not fixed, allowing room for negotiation based on the specifics of the transaction. Factors such as the services you need and your relationship with the agent can influence the final rate in Delaware.
When negotiating, it’s essential to consider what services your agent will provide, such as their marketing approach and knowledge of the local market.
Tips for a successful negotiation
- Interview multiple agents to compare their fees and services.
- Propose a commission structure that rewards the agent for quicker sales or higher sale prices.
- If your property is in a high-demand area, use that as leverage to negotiate lower fees.
Delaware real estate commission FAQs
What are the changes to real estate commission? Two key changes were introduced in 2024: buyers must now agree to their agent’s commission in writing before starting home tours, and in some regions, buyer agent commission amounts are no longer displayed on the MLS. Learn more about the real estate commission changes here.
How do the changes impact buyers in Delaware? Buyers must now sign an agreement about their agent’s commission before touring homes. However, they can still negotiate with sellers to cover this fee during the offer stage.
How do the changes impact sellers in Delaware? Sellers can continue working with their listing agent to decide how much, if anything, they will contribute toward the buyer’s agent commission. Sellers should be prepared to negotiate this cost with potential buyers.
How do you find a real estate agent in Delaware? When you’re ready to buy or sell a home, partnering with a Redfin agent ensures you’ll receive expert advice at every step.
How can you avoid fees? One way to avoid paying real estate commissions is by opting for the For Sale By Owner (FSBO) method. However, this requires you to handle every aspect of the sale, including marketing and paperwork, which can be time-intensive and challenging without professional support.
*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.
The post Delaware Real Estate Commissions: What You Can Expect in 2024 appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.