What’s the Average Wisconsin Real Estate Commission Rate?

Does the agent get to keep the full commission?

Although the seller pays the entire commission, the listing agent, who is representing the seller in a transaction, doesn’t keep it all. Part of their commission will go toward marketing your property with professional photography, open houses, offline marketing, and more, which we’ll discuss below.

The commission is also typically shared with the buyer’s agent to compensate them for bringing a buyer to the sale and coordinating the buy-side of the transaction. Because the listing agent invests more money into the sale, they generally keep more of the commission.

Dallaire says, “Some areas split that commission 50/50. But I would say, in general, sixty percent goes to the listing house and forty percent to the buyer’s house.”

Both the listing agent and the buyer’s agent will then share a percentage of their commission with their sponsoring broker.

These split rates can vary; however, it’s common for the listing agent to give their broker anywhere from 30%-50% of their commission, depending on the agent’s level of experience, their market size, and brokerage agreement.

How is the commission divided between agents?

The commission that’s paid by the seller will typically be split among each agent and the brokerages through which they hang their real estate license. Let’s say you sell your home for $220,000 with a 6% commission rate. You pay a commission of $13,200. The listing agent keeps 60% ($7,920) of that, and the buyer’s agent takes 40% ($5,280); each agent has a 70/30 split agreement with their brokerage. Here’s how that might look in Wisconsin:

• Listing agent: $5,544 (70% of the $7,920 commission share for the listing agent)
• Listing broker: $2,376 (30% of the listing agent’s commission share)
• Buyer’s agent: $3,696 (70% of the $5,280 commission share for the buyer’s agent)
• Buyer’s broker: $1,584 (30% of the buyer’s agent’s commission share)

Are Wisconsin commission rates negotiable?

You can negotiate real estate agent commission rates, but don’t be surprised if your agent holds firm on how much they charge. A Consumer Federation of America report found that only 27 percent of agents are willing to negotiate the commission.

One reason agents often don’t lower their rate is that it may reduce their ability to negotiate a higher sale price for the seller. An agent’s services often include photography and pricing analysis, so a lower commission could also translate into a smaller marketing budget for your property, an inaccurate list price, fewer home promotions, and a lower likelihood of selling.

Overall, commissions in Wisconsin are negotiable but do your research first. When asking an agent to lower their pay, you’re limiting the pool of agents willing to work with you. And the downsides to working with a low-commission agent can be steep. Without a top Wisconsin agent in your corner, you could dramatically undersell your home, have a rough selling experience, or fail to sell the home at all.

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

A full-service real estate agent in Wisconsin will provide a high level of offerings that go toward giving you a great selling experience and boosting exposure to your home.

An agent’s services fall into a few main categories:

Guidance on pre-sale improvements

Agents see a lot of houses in their Wisconsin markets. They will have an eye for the small but impactful improvements you could make to help it sell for more. The best agents will go above and beyond to help their clients get the job done.

Dallaire says, “A majority of sellers need direction and guidance on what they should and shouldn’t do, and we really step in and make sure that we provide them with vendors for almost anything and everything that they could potentially need.” For example, he recently helped an elderly seller coordinate pod storage, which she didn’t realize was an option.

Pricing strategy

An agent will put together a comparative market analysis (CMA) in the form of a thick packet featuring charts, facts, figures, and photographs of houses. The analysis will show you what your home is worth based on comparable sales in the neighborhood, market trends, and local price per square foot. This key tool helps you set a realistic price that can attract offers right off the bat in a fraction of the time it would take a non-professional to determine.

Dallaire says you cannot underestimate the importance of a correct price. In fact, his team usually runs two comparative market analyses –– one to give the client an estimate when they first meet, and another just prior to putting the house on the market. In his experience, things can change during that time, and he wants to ensure the most accurate pricing possible. “I take pricing very seriously. I think it’s one of the most important things,” he says.

Marketing services

As part of their commission, at a minimum, Wisconsin agents should offer expert home prep and staging, professional photography, marketing flyers and pamphlets, direct mail, automatic postings of your listing on major home search sites, local advertisements, exclusive previews for other brokers, and open house coordination. Advanced agents may also offer the development of a virtual tour.

Dallaire also highlights the need for social media marketing. “It’s a pay-to-play game, and I’ll be frank with you, some real estate agents aren’t allocating the necessary budgets to make sure that properties truly get noticed in the social networks. If you’re not paying to get exposure, you’re not getting exposure.”

Offer management and negotiations

When you receive one or multiple offers, an agent will help you determine the strength of the offer and work with you to proceed with responding to buyers. They’ll advise on whether to accept, reject, or make a counteroffer while putting together offer spreadsheets to identify the best offer in bidding war situations.

If a buyer requests repairs after the inspection, an agent will help you push back where appropriate and advise on when to concede. Should the appraised value be lower than the contract price, an agent can help you determine whether to ask the buyer to make up the difference or if you should lower your price.

Dallaire says, “When it comes to negotiation, I try to prevent my sellers from making premature decisions. I coach my client ahead of time that we really need to take at least 48 to 72 hours to make sure that every single buyer has had a chance to see their home. That way, we know we’re not leaving any money on the table.”

Market knowledge and neighborhood expertise

Great Wisconsin real estate agents know what local buyers seek in homes and which of your home’s attributes to highlight. An agent will skillfully incorporate key features into your home’s listing description and immediately be able to recognize what makes your house or the surrounding area special.

What is a fair real estate commission in Wisconsin?

As noted above, the average commission rate in most Wisconsin markets is between 5%-7% to hire a full-service real estate agent. This rate should mean you have an agent who is dedicated to selling your home for the best possible price, who is available and communicative, and who is willing to shepherd the transaction from start to finish. If an agent isn’t willing to offer all or the majority of services listed above, you should interview more candidates.

What if my Wisconsin house doesn’t sell?

Real estate agents only get paid commissions if and when your home sells successfully. Most real estate contracts include an exclusive right to sell, which gives the real estate agent the sole rights to market the property, list the property on MLS, and receive the commission if the sale closes in a determined time frame. If your house remains on the market beyond the time period outlined in the listing agreement, you are not obligated to pay your agent.

However, keep in mind that your listing agreement may contain a protection clause, also known as a “brokerage protection clause,” “safety clause,” “extension clause,” or “tail provision.” The protection clause states that if a buyer who the listing agent introduced to the property purchases the property after the listing agreement expires, the seller still must pay the agent a commission.

“We go the traditional route, that if we don’t sell the property, we don’t get compensated,” Dellaire says, though he notes that some agencies will now ask to be recouped for marketing costs. “We can easily be $2,500 to $3,500 deep in advertising expenses, including all the stuff we talked about. We take on the risk in that.” As such, a real estate agent is motivated to get your house sold, because they have significant marketing costs invested.

How can you avoid paying Realtor fees?

There are two main ways to avoid paying Realtor® fees. You can either sell your Wisconsin home without an agent’s help, or sell it directly to a cash buyer without ever going on the market.

For Sale By Owner

Without a real estate agent, you’re responsible for preparing your home for sale, marketing, negotiating, and navigating legal and financial documents. When selling a house on your own, you’ll need to hire an attorney, at a minimum, to make sure the paperwork is right.

Typically, For Sale By Owner (FSBO) makes the most sense if you already have a buyer. As of 2022, 50% of FSBO sellers knew their buyer.

This indicates that while the FSBO route is rare, making up just 10% of sellers, it’s even more rare to forgo a real estate agent’s help when you don’t already have a buyer lined up and ready to go. In addition, according to a 2022 National Association of Realtors report, the median FSBO house sold for $225,000, compared to a median of $345,000 for agent-assisted sales. That’s a significant loss of proceeds in an effort to save 6% on commissions.

Sell to a cash buyer

Cash buyers — including iBuyers, investors, and house-buying companies — are individuals or entities that purchase your home outright, without the need for lender financing. These buyers typically make off-market purchases and can provide speed and convenience to sellers.

Just be aware that the price offered by most cash buyers may not match what you could receive on the open market with the help of a top agent.

If you’re interested in a cash sale, you can receive a no-obligation offer through HomeLight’s Simple Sale platform, with no hidden fees or agent commission. Simple Sale connects you to the largest network of cash buyers in the U.S.

Now you know how Wisconsin agent commissions work

Sellers pay real estate commissions in exchange for an agent’s expertise and services throughout the sale process. If you’re worried about the cost of the commission, consider that targeted upgrades, stellar marketing, and savvy negotiations can help you maximize your sale price. With a performance-proven Wisconsin agent to guide you, you also avoid the stress of navigating this complex process without professional oversight.

The key is finding a quality agent who provides the highest amount of value for their commission fee. In fact, our transaction data shows that the top 5% of agents in Wisconsin sell homes for as much as 10% more than the average agent.

Dallaire’s team is one such agency. “We’ve averaged between 45 to 51 sales per agent for the last six years, and the national average is seven homes.” He credits a stellar full-time support staff, which allows his agents the chance to really focus on their clients.

Interested in expertise like this? HomeLight can connect you with top Wisconsin agents with experience tailored to your needs. Whenever you’re ready to get started, HomeLight would be happy to put your commission worries to rest by introducing you to several agents in your area who are well worth it.

Writer McCoy Worthington contributed to this story.

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