When purchasing or selling a home in Louisiana, it’s essential to understand real estate commissions for proper budgeting and negotiation. As of 2024, new changes have altered how real estate commissions are disclosed nationwide, offering buyers and sellers greater transparency. These updates are designed to ensure clearer communication and help people make more informed choices regarding real estate fees.
Whether you’re entering the market as a first-time buyer or an experienced seller, this Redfin guide will provide valuable insights into Louisiana’s real estate commissions and what to anticipate in today’s market.
Current state of the Louisiana housing market
Before we explore real estate commissions in Louisiana, it’s important to take a look at the state’s current housing market conditions.
| Median Home Sale Price | $251,500 |
| Housing Supply | 15,718 (+7.9% YoY) |
| Homes Sold Above List Price | 11.9% (-1.4 pts YoY) |
Understanding real estate commissions in Louisiana
What are real estate commissions?
Real estate commissions refer to the fees paid to agents by either homebuyers or sellers in exchange for their services in closing a real estate transaction. These fees are typically a percentage of the property’s final sale price and are settled at the closing of the deal.
Who pays the commission?
In the past, it was common for the seller to handle both their own agent’s commission as well as the buyer’s agent fees out of the sale proceeds. However, starting August 17, 2024, a new rule requires buyers to agree to their agent’s fee in writing before starting home tours.
Buyers can still negotiate with the seller to cover their agent’s commission as part of the offer, but with this change, the amount a seller may pay toward the buyer’s agent commission is negotiable and can vary from deal to deal.
Average real estate commission rates in Louisiana
Commission rates for real estate transactions in Louisiana can differ significantly depending on the details of the deal and the agreements between the parties involved. Though there are some general expectations for commission percentages, these fees are fully negotiable. Buyers and sellers can work out terms with their agents to create a fee structure that works best for their circumstances.
Several elements, such as the property’s location, market demand, and the range of services provided by the agent, can all impact the final commission rate. This flexibility allows room for adjusting fees to meet specific budgets and goals. Below is an overview of sample commission rates based on median home prices in some of Louisiana’s major cities.
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| New Orleans | $327,000 | $4,905 | $9,810 | $16,350 |
| Baton Rouge | $234,500 | $3,518 | $7,035 | $11,725 |
| Shreveport | $187,500 | $2,813 | $5,625 | $9,375 |
At Redfin, we’re dedicated to providing exceptional value to our clients. For sellers, we offer a listing fee starting as low as 1%.* For buyers, our fees vary by location but remain competitive to help your offer stand out and increase your chances of success in the homebuying process.
Can you negotiate real estate commissions in Louisiana?
Yes, you can! There are no federal laws or regulations setting commission rates, so agents are often open to negotiating their fees. This flexibility depends on factors like the type of transaction, the services required, and your relationship with the agent.
When negotiating, consider the agent’s level of service, their marketing strategies, and their local market experience. Sellers may have more leverage to negotiate lower rates if their property is highly desirable or likely to sell quickly. Additionally, if an agent represents both the buyer and the seller (dual agency), there may be an opportunity for a reduced commission fee since only one agent is involved.
Tips for a successful negotiation
- Evaluate multiple agents: Review and compare commission structures from several agents before making your choice.
- Consider performance-based incentives: Negotiate incentives that tie commission rates to performance, such as a higher commission for a quicker sale or a better sale price.
- Leverage your property’s appeal: If your property is in a desirable location, use this to negotiate a lower commission, as agents may be more flexible on fees for attractive listings.
Louisiana real estate commission FAQs
What are the changes to real estate commission? Recent updates have altered how commissions are handled. Buyers must now agree to their agent’s fees in writing before touring homes. Additionally, many markets no longer display agent compensation on MLS listings. Learn more about the real estate commission changes here.
How do the changes impact buyers in Louisiana? Buyers are now required to sign a commission agreement with their agent before starting home tours. However, you can still ask the seller to cover your agent’s fee as part of your offer.
How do the changes impact sellers in Louisiana? Sellers will continue to negotiate with their listing agent about the compensation offered to the buyer’s agent, if any. Sellers can review and negotiate terms based on requests from the buyer’s side.
How do you find a real estate agent in Louisiana? If you’re looking to buy or sell a home, Redfin is here to assist. Connect with a Redfin agent today.
How can you avoid fees? Selling a home without an agent in Louisiana (FSBO) can save on commission fees, but it requires more effort from the seller, including managing marketing, showings, 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.
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