What’s the Realtor Commission in Montana?

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The real estate market in Montana is booming, with prices rising steadily. According to a poll of FastExpert agents, the average realtor commission in Montana is 5.67%.

This is slightly higher than the national average of 5.57%. However, it is important to keep in mind that commission rates can vary depending on the individual agent, the type of property, and the location.

While 5.67% may seem like a small percentage, it results in a payment of thousands of dollars. It’s essential to understand what services you’ll receive from your realtor and what results you can expect from your commission payment.

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The Montana Housing Market Boom

Montana’s housing market has shot up in value over the past several years. The Covid-19 Pandemic caused many city dwellers to long for open spaces. Montana provided the incredible Big Sky views, peace, and low cost of living that people desired.

In addition, shows like Yellowstone have idealized life in Montana, driving up demand for homes in Montana. The population of Montana increased 9.6% over the past decade according to the US Census, much of that growth occurring over the past few years.

Furthermore, the economy of Montana grew by 6.7% in 2021, the fastest pace in over 40 years and the seventh-fastest growing state economy in the United States.

Thus, the Montana housing market has seen a surge in demand and, therefore, a sharp increase in home values.

Montana Home Values

Montana home values in January 2020 were $265K according to Zillow. Two and a half years later, home values almost doubled to an average rate of $435K in July 2022. While prices have cooled recently and come down to $420K, the rate of increase is astounding.

While it is likely that home prices will cool in Montana, the strong demand for homes in the area will likely bolster home values and keep them strong. It is expected with the Nation’s migration away from big cities and towards more open space that the demand for homes in the Montana real estate market will continue.

Understanding Realtor Commission in Montana

What is a commission rate?

The commission rate, also referred to as realtor fees, is the payment to the real estate agent for the services you receive when selling or buying a home. The total commission payment is a percentage of the home’s final sale price.

Who pays the real estate agent commission in Montana?

The seller pays the realtor commission in Montana for the real estate transaction, similar to home sales in the rest of the nation. While the realtor fees can be baked into the purchase price of the home, ultimately, the seller is responsible for paying the commission for both the listing agent and the buying agent.

Wait, the seller pays the realtor fees for both real estate agents?

Yes, the seller pays the real estate agent commission for both the listing agent and the buying agent. Typically the commission payment is considered a marketing cost. In addition, paying the buyer’s agent incentivizes agents to show the prospective buyers a property.

>>LEARN: How do real estate agents get paid?

Realtor Commission in Montana on an Average Home

According to a FastExpert survey of hundreds of agents, the average realtor commission in Montana is 5.67%.

The estimated Montana median home value is $420,000.

Therefore, the total real estate agent commission payment would be $23,520.

Each agent is also represented by a brokerage, and the licensed real estate brokers get a cut of the commission as well.

The total real estate agent commission payment of $23,520 is divided between the listing agent, listing agent’s brokerage, buyer’s agent, and buyers agent’s brokerage.

Typically the total commission payment is split equally between the listing agent’s brokerage and the buying agent’s brokerage, in this case, each would receive $11,760.

That payment is then divided between the agent and brokerage. In our example, the listing agent/seller’s agent and seller’s broker split the commission equally, with each receiving $5,880.

If an agent has more experience or is a top performer, they often get to keep a higher percentage of the commission. In our example, the buyer’s agent commission keeps 80% of their portion of the commission payment for a total of $9,408. The brokerage receives 20% of the realtor fees for a payment of $2,352.

>>MORE: Finding local agents is easy with FastExpert

Average Income of a Real Estate Agent in Montana

Montana real estate agents earn an average of $96,306 per year according to ZipRecruiter. This is slightly below the National average of $107,432. Yet, it’s important to keep in mind that the cost of living in Montana can be lower than the national average.

Experience also impacts the income that a realtor earns. Agents will less than two years of experience earn an average of $74,175 per year. And real estate agents with more experience earn closer to $108,017, with the highest reported salaries nearing $190,000.

Furthermore, location can impact the sale price, and, therefore, the commission payment. In addition, the vibrancy of the housing market, the type of property, and the work necessitated in selling the property can all affect the realtor fees.

>>DISCOVER: Top 25 Real Estate Agents in Montana

Top Paying Cities for Realtors in Montana

  1. Bozeman – $107,875
  2. Great Falls – $106,916
  3. Butte – $104,610
  4. Belgrade – $103,499
  5. Havre – $102,531
  6. Miles City – $101,493
  7. Helena – $96,661
  8. Kalispell $96,185
  9. Billings $92,165
  10. Missoula – $90,855

Ask an Agent Your Questions

Buying and selling a home is a life-changing decision. Often it comes with uncertainty and questions. We’re here to help! Ask a FastExpert agent any question or search our advice page for answers. Real estate doesn’t need to be overwhelming or mysterious. FastExpert provides transparency, top-agents, and trustworthy advice.

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Why Work with a Real Estate Agent?

If you are thinking of buying or selling a property in Montana, it is a good idea to work with a real estate agent. A real estate agent will have a deep understanding of the market and can help you navigate the process of buying or selling a property. They can also provide valuable advice and resources.

What Does an Agent Do?

A real estate agent is a professional who helps people buy and sell property. They are experts in the field and can provide valuable advice and guidance. If you are thinking of buying or selling a property, it is essential to work with an experienced agent.

How Do I Choose an Agent?

When choosing an agent, it is important to consider their experience, knowledge, and personality. You should also make sure that they are a good fit for your needs. FastExpert can help you find the best local agents. Simply browse our extensive network of agents to get started.

If you’re ready to start searching for an experienced Montana real estate agent, we can help!

>>MORE AWESOME INFO:

Real Estate Experts

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