Real Estate Fees And Commissions in Washington

Image by Getty Images; Illustration by Bankrate

No matter which side of the bargaining table you’re sitting on, the Washington housing market has some good news for you. May data from Redfin shows that, for buyers, there are more than 20 percent more homes available to purchase now than there were a year ago. And for sellers, more than 25 percent of homes sell for above their list price.

Make no mistake, though: Buying or selling a home here is a complex process. That’s why the vast majority of people hire a real estate agent to guide them. If you’re thinking about working with an agent, there’s a lot to consider regarding real estate commissions in Washington. Here’s more on how much green you’ll need to pay in the Evergreen State.

How much are real estate commissions in Washington?

According to research from Clever Real Estate, the typical agent commission rate in Washington is 5.33 percent of the home’s purchase price. That’s slightly lower than the national average of 5.44 percent, but the state’s home prices tend to be higher than average: The median home price here in May was $653,100, per Redfin. A 5.33 percent bite out of that median-priced home would come to $34,810.

However, that figure represents the all-in amount for both agents combined, and it’s not an even split. Clever’s data shows that the listing agent’s take is typically higher than the buyer’s agent’s: 2.75 percent versus 2.58 percent, respectively. Those percentages would result in $17,960 for the seller’s agent (that’s the listing agent) and $16,850 for the buyer’s.

Keep in mind, too, that median sale prices can look very different depending on where in Washington state you’re located. Here’s how it breaks down in several major markets:

Sources: Clever, Redfin

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

So what do you get in exchange for all that money? A licensed expert to do the heavy lifting involved in a real estate deal.

If you’re trying to buy a house in Washington, a real estate agent will find a variety of homes suitable for your lifestyle and budget. They’ll also help you make a competitive offer and negotiate on your behalf, as well as guiding you through the closing process.

For sellers, a real estate agent will handle all the responsibilities that go with listing a home: Getting professional photos taken, crafting a compelling listing, marketing the home, hosting open houses and coordinating private showings, negotiating offers and more.

Who pays agent commissions in Washington?

Historically, sellers in Washington — and everywhere else in the country — covered the commission fees for both their own agent and the buyer’s agent. However, that is no longer standard practice after a 2024 lawsuit. Now, which party pays for which commissions, and how much they will be, is negotiated upfront, so both parties will discuss the matter with their agents in advance. Many home sellers will still agree to cover the buyer’s agent costs in order to move a sale along, but it’s not a requirement.

Are Washington real estate agents worth it?

Working with a seasoned agent can make the complex process of buying or selling a home much easier. While it may cost you a commission fee, most people feel the benefits are worth it.

• For buyers: Rather than constantly scrolling through an overwhelming amount of listings on your own, an agent will work with you to identify options that meet your needs, then counsel you through the entire transaction, all the way through to the closing paperwork (which is considerable). Agents often know of listings you might not find on your own, too.

• For sellers: An agent does all the research and marketing work so you don’t have to. They know how to price a property right, negotiate with savvy and market to a wide network of consumers, as well as to their own colleagues. Their job is literally to bring in the best price possible for your home.

Saving on fees

If you’re put off by the amount of a traditional agent commission, there are ways to reduce the cost:

• Negotiate the fee: Agents typically earn somewhere between 2.5 and 3 percent of the purchase price for their services, but there may be some wiggle room. Many agents will consider taking a lower percentage, especially if the transaction involves a high-priced property.
• Work with a discount brokerage: Companies such as Clever and Redfin offer more affordable commission rates that can be as low as 1 or 1.5 percent. There are also flat-fee brokers that work for a fixed amount, regardless of how much the home eventually sells for.
• Do it yourself: Some sellers opt for the “for sale by owner” route, which eliminates the need to pay a listing agent altogether. However, keep in mind that without an agent you’ll need to all that work yourself, which is a big commitment.
• Sell to a local cash-homebuyer: Loads of companies buy houses for cash in Washington, and they offer quick closing timelines with no agent involvement. However, the money you save on fees you may lose in profits: The tradeoff with these companies is that, while they’re fast and convenient, they typically offer prices far below market value.

Find a Washington real estate agent

For most homebuyers and sellers, hiring a real estate agent will be well worth the cost. However, you shouldn’t just pick any agent. Compare multiple options to see who has an approach that feels like a good fit to help you succeed in your local area’s housing market. Ask friends and colleagues for recommendations, and set up interviews with a few agents to hear their perspectives. Before you sign a contract for one of biggest financial transactions of your life, make sure you feel confident that this agent is the right one for you.