How Much Will It Cost to Sell My Home?
Real estate agent commission explained for Minnesota sellers, including what actually changed after the 2024 NAR settlement.
The old "6% is just the rate" answer stopped being true
How much will it cost to sell your home in Minnesota comes down mostly to real estate agent commission, and the honest answer changed in 2024. For years the reflexive reply was a single blended percentage that quietly covered both the listing side and the buyer's agent, printed on the MLS, treated like a fixed law of nature. It never was fixed, and after the National Association of Realtors settlement it is now openly split into two separately negotiated numbers. At New Haus Real Estate we are a family-owned brokerage in Hamel led by Blake Swanson, and we walk West Metro sellers through the current structure before anyone signs a listing agreement, so your net is a real number rather than a percentage someone quoted at a barbecue.
This guide covers what commission is, what the 2024 settlement changed for Minnesota, who pays the buyer's agent now, and what a discount listing agent actually gets you. If you already want your number, the free valuation is at the bottom.
Real estate agent commission, in plain language
Commission is what the brokerages earn for selling the home, paid out of your proceeds at closing rather than up front. It has always been negotiable, and there has never been a legally set rate anywhere in Minnesota. The number you agree to reflects the price band, the amount of work the property needs, and the market at that moment. A move-in-ready Plymouth townhome and a $1.4 million Orono lakeshore listing are not the same job, and pretending one percentage fits both is how sellers end up surprised at the closing table.
There are two sides to almost every sale. The listing side covers pricing, prep guidance, photography, MLS exposure, marketing, showing coordination, offer negotiation, and shepherding the deal through inspection, appraisal, and closing. The buyer's side covers the agent who brings and represents the person buying your home. Before 2024 these two numbers were usually stapled together and advertised as a single figure. They are now decoupled, and that distinction is the whole story of what changed.
"We put the two commission numbers on the table separately, in writing, before you list. You should never be guessing what you agreed to, and you should never learn it at closing."
Want a person who explains the structure line by line instead of hand-waving a percentage? That is what selling with New Haus in the West Metro is built around. Or call Blake at (612) 710-8353.
Commission is negotiable. It always was. Now it is finally out in the open.
What the 2024 NAR settlement changed for Minnesota
The settlement did not invent negotiable commission, and it did not lower or cap any rate. What it changed is how the two sides connect, and how buyers formally engage an agent. Three practical shifts matter to a West Metro seller, and they took effect for how homes are marketed and shown here.
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1. Buyer-broker compensation is no longer advertised on the MLS
The listing can no longer publish an offer of compensation to the buyer's agent inside the MLS. Any arrangement to compensate the buyer's side now happens off the MLS, through direct negotiation in the offer or a separate agreement. For you, that means the buyer-side number is a decision you make with your agent, not a default you inherit.
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2. Buyers must sign a written buyer-agency agreement before touring
A buyer working with an agent now signs a written agreement, spelling out how that agent gets paid, before they tour a home. This is why understanding how buyer agency works after the NAR changes matters even for a seller. The buyers walking through your open house have already committed to a compensation arrangement, which shapes the offers you see.
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3. The two commissions are decoupled and separately negotiable
You negotiate your listing-side commission with your agent, and you separately decide whether, and how much, to contribute toward the buyer's agent. A seller contribution can still make a listing more attractive and widen the buyer pool, but it is now an open choice rather than a bundled given.
This is genuinely new territory, and a good agent should be able to explain your two numbers without flinching. Ready to see yours in writing? Start with seller representation or call (612) 710-8353.
So how much will it cost to sell my home?
Commission is the largest line item, but it is not the only one. Selling costs come out of your proceeds at closing, so you rarely write a check up front, though they do lower your net. Rather than quote a percentage that will not match your address, here are the real line items that move the number in the West Metro, and where each one lands in the process.
| Cost | When it hits | What drives it |
|---|---|---|
| Listing-side commission | Closing | Negotiated with your agent at listing. Reflects price band and work required. No fixed rate. |
| Buyer-side contribution | Closing, if you offer it | Now a separate choice post-settlement. Can widen the buyer pool, but is negotiated per offer. |
| Prep and staging | Weeks 1 to 3 | Condition of the home. A move-in-ready townhome needs little. A dated lakeshore property may warrant more. |
| Seller-side closing costs | Closing | Title work, transfer paperwork, prorated taxes. Scales with sale price. |
| Repairs and concessions | Weeks 6 to 9 | Well, septic, or radon items are common on older Hamel and rural properties. We front-load these to avoid surprises. |
The fastest way to a real net number is the free home valuation. It takes about a minute to start.
See Your Real Net, Not a Guessed Percentage
Get a free, no-obligation home valuation built on comparable sales in your exact West Metro price band, with your commission structure explained in writing. Prefer to talk? Call Blake at (612) 710-8353.
Commission questions Minnesota sellers ask
Who pays the buyer's agent in Minnesota now?
It depends on what gets negotiated, which is exactly the change from the 2024 settlement. The buyer's agent is compensated through the buyer-agency agreement the buyer signed, and that compensation can come from the buyer directly, from a seller contribution offered in the deal, or a mix of both. As the seller you decide whether to contribute toward the buyer's side and how much, and that decision now happens in the offer rather than as an MLS default. A quick call with Blake at (612) 710-8353 will walk you through the options for your specific listing.
Should I use a discount listing agent to save on commission?
A discount listing agent charges a lower listing-side fee, and for the right seller and the right home that can make sense. The honest tradeoff is service. Discount models often trim pricing strategy, professional photography, marketing reach, negotiation, and hands-on management of inspection and appraisal, which is where a strong sale is actually won or lost around Lake Minnetonka. If your home is standard, move-in ready, and in a deep buyer pool, the math can work. If it is a lakeshore, acreage, or dated property that needs real strategy, a lower fee on a weaker sale is not a saving. We would rather show you the full number, both sides, so you can compare honestly. Start with seller representation with New Haus.
Is there a standard real estate commission rate in Minnesota?
No. There is no legally set or "standard" commission rate in Minnesota, and there never was. Commission has always been negotiable, and the 2024 settlement reinforced that by decoupling the listing and buyer sides so each is negotiated on its own. Anyone who tells you the rate is simply fixed is not giving you the current picture. The right number for your sale depends on your price band, your property, and the market when you list, which is what we lay out before you sign anything.
Ready to See Your Numbers?
New Haus Real Estate is a family-owned brokerage serving the West Metro and Lake Minnetonka. Get your free valuation with commission explained in plain language, or talk it through with Blake.