What is the Average Realtor Commission in Michigan?


|12 min read

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detroit michigan realtor commission rate

As with most jobs, real estate agents in Michigan get paid for the work they do. Each time a realtor helps a client buy or sell a property they receive a commission as payment. As a buyer or seller, knowing how much an agent charges can help with budgeting. According to a FastExpert survey of real estate agents, the average realtor commission in Michigan is 5.93%.

As a realtor, working in a region that has high commission rates can be nice. It means the potential to earn more money. As a buyer or seller, the best approach is to find a skilled, reputable agent who has a lower commission rate.

Here’s a rundown of real estate agent fees and commission in Michigan, in order to help you make the best market decisions.  

National Average Realtor Commission in 2022?

In the US, real estate commission rates vary from state to state, and also from agent to agent. In 2022, the average national residential rate sits at about 5.49% of a home’s closing sale price.    

Realtor Fees in Michigan

What is the typical real estate commission rate for realtors in Michigan? This percentage fluctuates and varies, just like the national average. Currently, the average commission for real estate agents in Michigan is around 6%. This rate obviously sits well above the national average. 

This being said, the average sale price of a home in Michigan is about half the national average, and so this results in lower fees. The average sale price of a home in the US is currently about $450,000. 

Statistics show the average home in Michigan sells for about $225,800. That means if you sell your home for the average home price in Michigan, you will likely pay $13,500 for a real estate agent. 

>>DISCOVER: The Top Real Estate Agents in Michigan

Save on your Michigan Realtor Commission

If you are working with a seasoned real estate agent who sells many homes, you may find they won’t negotiate their commission rate. 

A newer real estate agent could be more likely to do so. Also, agents working in competitive, sought-after markets may be more open to negotiating a lower fee. 

One option to getting a lower rate is interviewing a few agents and getting their rates. If you like one but they have a higher fee, let them know another agent you met with offered a lower rate. Often times agents will do what they can to match another agent’s fee to save a partnership.

If you can generate additional business for your agent through referrals, they might be open to lowering their fees.

It’s important to choose an agent based on the level of service they provide, along with their rate. Searching for an agent solely based on a low commission rate could lead you toward lower-level service. 

Remember, as with all transactions, you tend to get what you pay for. If it sounds like a deal that is too good to be true, it probably is. 

What is flat-fee real estate?

Sometimes, a real estate agent works for a flat fee that is often far cheaper than the average commission. This can potentially bring you significant savings as a buyer or seller.

It’s important to be aware of the limitations flat-fee agents may have. Here’s what you should know. 

A traditional real estate agent will guide you through the entire process of selling or buying a home. A seller’s agent will take professional photos of your home, help you stage it, and advertise your listing across several professional networks.

This agent will negotiate on your behalf to obtain the best selling price possible. A buyer’s agent will also negotiate on your behalf, help you find the ideal property to match your needs and help connect you with other professionals that can be key to helping you buy the right property. 

Flat-fee real estate agents often do not invest the same time, money, and energy into your sale or purchase of a home as traditional agents do. This is because their fee is a set amount and doesn’t depend on making a good sale.

Always be sure to conduct thorough research when vetting an agent to ensure they meet your vision. 

>>AGENTS ANSWER: How can I get the most money from selling my house?

michigan realtor commission on house

Who pays realtor fees in Michigan?

As with many states, the real estate agent commission Michigan home homeowners supply is paid for by the seller. This fee comes out of the final sale of the home. In some ways, however, you could say the buyer pays for this fee. This is because the average commission rate for realtors in Michigan is factored into the home’s sale price automatically, pushing the price higher. 

There can be just one agent involved, but most real estate transactions involve two agents: the seller’s agent, and the buyer’s agent. The seller’s agent represents the person selling the home, and the buyer’s agent represents the individual interested in purchasing the property. 

The realtor fee in Michigan, or the state of Michigan realtor fee, is typically split evenly (50-50) between the seller’s and buyer’s agent. 

>>LEARN: How Do Real Estate Agents Get Paid?

The Realtor Commission in Michigan for an Average Home

Michigan real estate varies by location. Some areas are more rural; whereas others are popular tourist destinations. With a long coast along Lake Michigan, there are expansive homes that command high home values. Other areas of Michigan are more affordable; yet still, offer the beauty of Michigan.

On average, the median sales price of a home in Michigan is $206K according to Redfin. The average Michigan real estate commission rate is 5.93%. Therefore, the total commission is $12,216.

This is usually split equally between the listing agent and the buyer’s agent. Therefore the listing agent’s commission (seller’s agent) would be $6,108, and the buyer’s agent’s commission would be the same.

Generally, the real estate broker for each agent will also get a percentage of the commission as well. Depending on the agreement with the brokerage, they take between 10%-50% of the commission that the partner agents receive.

What salary does a real estate agent earn in Michigan?

How much do realtors make in Michigan? According to online sources, the annual salary of agents in the state varies widely. The current average according to Indeed.com as of May 2022 is $86,000 per year. On the upper end, a seasoned agent may be making $95,000 per year or more. 

Salary ranges for real estate agents can vary quite widely from one region to another. They also go up and down in relation to an agent’s experience, sales history, and demonstrated skills.   

Rentals and Leases

Who pays realtor fees for rentals in Michigan?

We’ve already covered what is realtor commission in Michigan when it comes to residential sales, but what about rentals? The landlord or owner of the property often pays the realtor fees for rental units in Michigan. Landlords pay real estate agents to find quality renters. This is generally the equivalent of one month’s rent. 

This isn’t always the case, however. In some areas, the landlord, or property owner, pays the value of ½  a month’s rent to a listing agent and ½ a month’s rent to the tenant’s agent. The tenant, in rental markets that aren’t so cutthroat, doesn’t pay for an agent’s services. By splitting the fee 50-50 between the listing and tenant agent, more agents compete for properties and more prospective tenants are brought to the scene. This creates a better rental market for property owners as it raises competition.  

How much do you pay a realtor for a lease option in Michigan?

The amount you pay a realtor for a lease option in Michigan is typically 5% of the total rent over the term of the entire lease. This can differ with leases that are longer than ten years. 

Realtor commission in Michigan’s main cities 

Grand Rapid, MI Real Estate Commission

Real estate agent salaries in Michigan can vary from city to city. A realtor’s salary in Michigan’s city of Grand Rapids averages about $87,000 per year. Agents make a commission of around 6%.

Grand Rapids is a vibrant city with a strong economy and low levels of unemployment driven by the presence of numerous colleges and universities in the area. Healthy rental prices and strong job growth have placed Grand Rapids at the top of some national real estate lists as the best place in the US to own a rental home. 

Ann Arbor, MI Real Estate Commission

The average real estate agent commission in Michigan includes agents working in Ann Arbor. In Ann Arbor, an agent generally makes a 6% commission on a sale with very competitive commissions ranging down to 4.99%. 

With a low crime rate and space to grow, this town is an ideal option for both university students and families looking for a new home. Cape Cod-style homes dot the neighborhood of Old West Side. Historic Burns Park offers tree-lined streets and outdoor activities. Lowertown has seen condo development in recent years and is transitioning through a comeback. The average real estate salary in Michigan is active in this area. 

>>DISCOVER: What Are Realtor Commission Rates in California?

Warren, MI Real Estate Agent Commission

The average realtor commission in the city of Warren Michigan is also typically between 5-6%.  

Right now, Warren is known to have a healthy housing market with lower interest rates attracting potential buyers. With a small-town feel and active lifestyle, Warren is attractive on many levels. The city is known for being home to the General Motors technical center, as well as US army research facilities. 

Real estate agent commission in Detroit

Detroit was once one of the most populous cities in the country. The amount of people living there has decreased by 10.5% from 2010 to 2020 but it remains the biggest city in Michigan. Real estate broker commission in the city of Detroit, Michigan tends to average a little lower, around 5.7%. Many big cities see their newer agents asking for lower commission rates to edge out the competition.

>>LEARN: Can You Trust Your Real Estate Agent?

Michigan real estate: do sellers pay all realtor fees?

Who pays realtor commission in Michigan? Sellers typically pay all realtor fees or commissions, with this cost fractured into the sale price of the property. This isn’t always the case in a hot seller’s market as these fees sometimes get negotiated onto the buyers closing costs.

michigan family

Who pays realtor fees for sale by owner in Michigan? 

If you’re working with a real estate agent to buy a home and you fall in love with a FSBO (for sale by owner) home, who pays your realtor commission?

This isn’t always a straightforward answer. Often times the seller will still pay the agent fee. One way to figure out your options is to look at your agent contract, if you signed one.

Before you make an offer or consider an offer, include who pays the fees involved. If you choose to buy a home without a realtor, be prepared for a lot of extra work and more in legal fees.


It’s always a great idea to interview many agents when deciding to sell or buy a home. Look for a reputable track record, competitive fees, and experience. 

Finding the best agent

Michigan is a great place to own your own home or a rental property. With family-friendly regions and a solid economy in some cities led by a strong college student presence, the state has a lot of growth opportunities. 

Finding the best agent for your needs doesn’t need to be complicated. You want an agent with knowledge of the local market and connections to set you on the right track. At FastExpert, we have the top real estate agents in the country in our database to help you find the perfect match. Search now

Andrew Te

Andrew has 7+ years of experience in Real Estate and working with Real Estate Agents. He is passionate about the housing market and solving problems.

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