Real Estate Commissions And Fees in Minnesota

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For homeowners in Minnesota (and elsewhere), real estate agent commissions have long been one of the biggest expenses of selling. Traditionally, home sellers were on the hook for all agent commissions in a transaction, including both their own agent’s fee and the buyer’s agent’s as well.

But recently, a lawsuit settlement has changed the structure of real estate commissions — and now, buyers may have to pay their agents directly.

Whether you’re planning to buy or sell a home in the Land of 10,000 Lakes, here’s what you should know about real estate commissions in Minnesota.

How much are real estate commissions in Minnesota?

Most real estate agents work on commission, and their fees are generally charged as a percentage of the home’s sale price — so the more expensive the home is, the more they make. Traditionally, each agent earns around 2.5 or 3 percent of the sale price, which would come to a total of somewhere between 5 and 6 percent combined.

According to data from Clever Real Estate, the average real estate commission in Minnesota is 5.77 percent — that’s a fair amount higher than the national average of 5.32 percent. But home prices in the state are also relatively low: The median sale price of a Minnesota home in April 2025 was $368,700, per Redfin data. A total 5.77 percent commission on a home of that price would come out to $21,274. But that total amount is not evenly split down the middle: Clever reports that Minnesota listing agents (who represent the seller) usually receive 3.15 percent in commission (or $11,614 on a median-priced home), while buyer’s agents get 2.62 percent (or $9,660).

Something else to note: Home prices will vary widely depending on your location within Minnesota. Using the percentages above, here’s how much real estate commissions would cost in a few different cities:

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

It depends on what side of the deal you’re on — but either way, agents do a lot to earn their fee.

• If you’re buying a house in Minnesota, one of your agent’s main duties will be finding listings that fit your budget and preferences, and then coordinating in-person visits. When you find the right fit, your agent will help you make a competitive offer and negotiate contract terms like price and closing date. They will also guide you through the closing process itself, including managing the paperwork.

• If you’re a Minnesota seller, your agent will research comparable properties in your area to determine the right asking price for your home. They’ll also create a listing, market your property, host open houses and manage private viewings — and later, help you review offers and negotiate to get the best possible deal. These agents also guide sellers through the closing process.

Who pays agent commissions in Minnesota?

For years, home sellers in the U.S. covered all commission fees, paying both their agent and the buyer’s agent from their sale proceeds. But in 2024, a federal lawsuit changed the rules around agent compensation. Now, commission amounts are negotiated in advance and sellers don’t necessarily have to pay their buyers’ agents — but many still choose to do so as a way of sweetening the deal or speeding up the sale.

Whether you’re a buyer or a seller, make sure your real estate contract explicitly states which party is responsible for paying each agent’s commission, and how much it is.

Are Minnesota real estate agents worth it?

You aren’t required to hire a real estate agent to buy or sell a home in Minnesota (or anywhere), but most people choose to do so. In fact, the National Association of Realtors’ 2024 Profile of Home Buyers and Sellers found that 88 percent of purchases were made through an agent or broker, and 90 percent of sellers used an agent to sell their homes. Here’s why.

Real estate deals are complex, with a lot of paperwork involved and a lot of money at stake, and agents are licensed professionals who have a detailed understanding of the industry. They make it their business to know everything about their local housing market, including the latest trends and property values in the area. They also help you navigate the legal and financial sides of a real estate transaction, advocate for you and explain your closing costs and other expenses. While all of these benefits come at a cost, their expertise throughout what can be a pretty overwhelming process is typically worth the price.

Saving on fees

Whether you’re buying or selling, there are a few ways to save money on your real estate transaction. Options include:

• Negotiate commissions: Many agents are open to negotiating their commission rates, so it’s worth asking before signing a contract. Even a slight discount could save you a sizable sum, especially on a pricier home.
• Work with discount agents: If you’re selling, consider hiring a discount real estate broker or agent, who charge lower rates than traditional agents. If you use an agent from Redfin or Clever, for example, you could pay just 1 to 1.5 percent of your home’s sale price in commission — quite a bit less than Minnesota’s typical 3.15 percent listing agent commission.
• Sell by owner: Alternatively, sellers can go the “for sale by owner” route. This means you won’t hire an agent at all, so there’s no listing agent’s commission to pay. Instead, you’re responsible for everything an agent would normally do, including listing, marketing and showing the property, as well as fielding offers and negotiating with buyers. It saves you the cost of an agent, but it’s quite a bit of work.
• Sell to a cash homebuyer: You’ll also avoid paying an agent’s commission if you sell directly to a cash-homebuying company. These firms generally buy homes in as-is condition, so you won’t have to clean or make any repairs before selling. In many cases, the entire transaction — from offer to closing — can be completed in just a few weeks. But in exchange for a quick and easy selling experience, cash homebuyers typically pay less than what you’d get on the open market.

Find a Minnesota real estate agent

Buying or selling a home is an enormous financial decision, and having an experienced real estate agent to guide you through the process can really help. To find a trusted agent in your local market, start by asking friends, family and neighbors for recommendations. You can try searching online for agents in your area, too. When you’ve identified a few candidates, interview each one and ask about their experience working with buyers or sellers like you.