Whether you’re buying or selling a home in Alaska, understanding the ins and outs of real estate commissions is crucial. In 2024, new rules were introduced to enhance transparency and improve communication around commission fees. These changes are designed to give both buyers and sellers more control over their transaction costs.
This guide will break down how real estate commissions in Alaska work and what you should be aware of for your next housing transaction, regardless of your experience level.
Current state of the Alaska housing market
Before we dive into commission details, let’s take a quick look at the current state of Alaska’s housing market:
| Median Home Sale Price | $398,500 |
| Housing Supply | 2,754 (+11.9% YoY) |
| Homes Sold Above List Price | 26.8% (-2.4 pts YoY) |
Understanding real estate commissions in Alaska
What are real estate commissions?
Real estate commissions represent the fees paid to agents who help facilitate a home purchase or sale. Typically, these fees are a percentage of the sale price and are settled during closing.
Who pays the commission?
Traditionally, sellers have been responsible for both their own agent’s commission and the buyer’s agent fee. However, as of August 17, 2024, buyers are now required to sign an agreement detailing their agent’s commission before viewing any properties.
While buyers can still negotiate for the seller to contribute to these costs, commission amounts are flexible and negotiable throughout the offer process.
Average real estate commission rates in Alaska
Commission rates vary depending on the specifics of the deal, such as property location, market conditions, and the services offered by the agent. Below is a snapshot of what commission rates might look like across Alaska’s largest cities:
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Anchorage | $420,000 | $6,300 | $12,600 | $21,000 |
| Fairbanks | $279,900 | $4,199 | $8,397 | $13,995 |
| Juneau | $266,000 | $3,990 | $7,980 | $13,300 |
At Redfin, sellers can take advantage of listing fees starting at just 1%*, with buyer fees varying depending on the location. Our goal is to keep commissions affordable while helping your listing attract competitive offers.
Can you negotiate real estate commissions in Alaska?
Yes! Real estate commissions are negotiable. Agents may be willing to adjust their rates depending on the transaction’s specifics, the property’s appeal, and the services they’re providing.
When negotiating, it’s important to factor in the agent’s expertise, marketing strategies, and the condition of your home.
Tips for a successful negotiation
- Interview multiple agents: Speak with a few agents to compare their services and fee structures.
- Incentivize performance: Consider offering bonuses if your agent sells your home quickly or above the asking price.
- Leverage property desirability: If your home is in a hot market, you may have more room to negotiate lower commission rates.
Alaska real estate commission FAQs
What are the new real estate commission rules in 2024? The recent changes include two major updates:
- Buyers must sign a document outlining their agent’s commission before touring homes.
- In many markets, buyer agent commissions are no longer disclosed in MLS listings.
Learn more about the real estate commission changes here.
How do the changes impact buyers in Alaska? Buyers now need to agree in writing to their agent’s commission before beginning property tours. However, they can still negotiate with the seller to cover some or all of these costs during the offer process.
How do the changes impact sellers in Alaska? Sellers must decide, with their agent’s guidance, how much they are willing to contribute toward the buyer’s agent commission. This amount will be finalized during the offer negotiations.
How do you find a real estate agent in Alaska? Whether you’re buying or selling, Redfin agents are here to guide you through the process, ensuring you understand every step of the transaction.
How can you avoid fees? If you choose to sell your home without an agent, often referred to as For Sale By Owner (FSBO), you can bypass agent commissions. However, you’ll be responsible for managing all aspects of the sale, from marketing the property to handling negotiations and paperwork.
*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.
This post first appeared on Redfin.com. To see the original, click here.