Understanding how real estate commissions work is vital when buying or selling a home in Pennsylvania. In 2024, new rules were introduced nationwide, bringing more transparency and clearer communication regarding real estate commissions. These changes help both buyers and sellers make more informed choices about the costs involved in real estate transactions.
Whether you’re purchasing your first home or you’re a seasoned seller, this guide will provide the key information you need about real estate commissions in Pennsylvania and how they may affect your home sale or purchase.
Current state of the Pennsylvania housing market
Before discussing real estate commissions, it’s important to look at Pennsylvania’s current housing market trends:
| Median Home Sale Price | $310,100 |
| Housing Supply | 39,250 (+5.2% YoY) |
| Homes Sold Above List Price | 34.9% (-5.7 pts YoY) |
Understanding real estate commissions in Pennsylvania
What are real estate commissions?
Real estate commissions are fees paid to agents for their services in facilitating the sale or purchase of a home. These fees are typically a percentage of the home’s sale price and are paid when the deal closes.
Who pays the commission?
Traditionally, the seller has paid both their agent’s commission and the buyer’s agent fees. However, from August 17, 2024, buyers are now required to sign an agreement that specifies their agent’s fee before they begin home tours.
Although buyers can still request that the seller covers their agent’s fee during the negotiation process, the amount sellers contribute can vary and is entirely negotiable.
Average real estate commission rates in Pennsylvania
Commission rates vary based on the terms of the transaction and the agreement between the parties involved. While there are common percentages, all commissions are negotiable, which allows buyers and sellers to customize the structure according to their preferences.
Several factors, such as the property’s location, market conditions, and the agent’s services, can influence the commission. Below is an example of commission rates for major cities in Pennsylvania:
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Philadelphia | $275,000 | $4,125 | $8,250 | $13,750 |
| Pittsburgh | $274,500 | $4,118 | $8,235 | $13,725 |
| Allentown | $238,000 | $3,570 | $7,140 | $11,900 |
At Redfin, our goal is to offer consumers the best value. Our listing fees for sellers start as low as 1%*, and while buyer fees differ by location, our rates remain competitive, helping your offer stand out in the market.
Can you negotiate real estate commissions in Pennsylvania?
Absolutely! Like the rest of the country, real estate commissions in Pennsylvania are fully negotiable. Some agents may be open to adjusting their fees based on the circumstances of the transaction or the services they provide.
When negotiating, consider factors like the agent’s marketing strategies, the services offered, and their expertise in your local market. Agents may be more willing to lower their fees for a high-demand property or if they represent both buyer and seller in a dual agency.
Tips for a successful negotiation
- Shop around: Speak with multiple agents and compare their commission structures before choosing one.
- Consider incentives: You might negotiate performance-based incentives, such as higher commissions for faster sales or better offers.
- Leverage your property’s appeal: If your property is in a desirable location or expected to sell quickly, use that as a point in negotiations to lower the commission rate.
Pennsylvania real estate commission FAQs
What are the changes to real estate commission? Two major changes came into effect in 2024:
- Buyers must sign an agreement outlining their agent’s commission before touring homes.
- In many markets, buyer agent fees are no longer displayed in MLS listings.
Learn more about the real estate commission changes here.
How do the changes impact buyers in Pennsylvania? Buyers must now agree to their agent’s fee in writing before home tours can begin. However, they can still request that the seller covers their agent’s commission when making an offer.
How do the changes impact sellers in Pennsylvania? Sellers will now negotiate with their agent on how much they’re willing to offer the buyer’s agent, if any. These terms will be part of the negotiation process during offers.
How do you find a real estate agent in Pennsylvania? Whether you’re buying or selling, you can connect with a Redfin agent to receive expert assistance and guidance throughout the entire real estate process.
How can you avoid fees? If you opt to sell your home without using an agent—also known as For Sale By Owner (FSBO)—you can save on commission fees. However, this route means taking on the responsibility for marketing, showing the property, and handling all the necessary paperwork independently.
*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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