Mississippi Real Estate Commissions: What You Can Expect in 2024
When buying or selling a property in Mississippi, grasping the details of real estate commissions is essential for effective budgeting and successful negotiation. The changes in 2024 have introduced new rules for how these commissions are communicated nationwide, offering increased transparency for both buyers and sellers.
Whether you’re a first-time homebuyer or an experienced seller, this Redfin guide will help you understand Mississippi’s real estate commission structure and what to expect in the current market environment.
Current state of the Mississippi housing market
Before we explore real estate commissions in Mississippi, it’s important to review the current state of the Mississippi housing market.
| Median Home Sale Price | $256,300 |
| Housing Supply | 8,809 (+14% YoY) |
| Homes Sold Above List Price | 10.3% (-2.9 pts YoY) |
Understanding real estate commissions in Mississippi
What are real estate commissions?
Real estate commissions are fees paid by the homebuyers or sellers to agents for their role in facilitating a home transaction. These fees, which are paid at the closing of the deal, are typically a percentage of the sale price of the property.
Who pays the commission?
Traditionally, sellers have been responsible for paying both their agent’s commission and the buyer’s agent’s fees from the sale proceeds. However, as of August 17, 2024, buyers must now agree to their agent’s commission rate in writing before starting any home tours.
Although buyers can still negotiate for the seller to cover their agent’s commission as part of the offer process, this new requirement introduces more flexibility. The exact amount that a seller will pay for the buyer’s agent can vary and is entirely negotiable.
Average real estate commission rates in Mississippi
In Mississippi, commission rates can vary widely based on transaction specifics and the agreement between parties. While there are common expectations for commission rates, they are negotiable.
Factors such as the property’s location, market conditions, and the agent’s services can affect the final commission rate. This flexibility allows buyers and sellers to adjust fees to meet their needs and budget. Here’s a breakdown of example commission rates based on median home prices in major Mississippi cities.
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Jackson | $110,000 | $1,650 | $3,300 | $5,500 |
| Gulfport | $208,000 | $3,120 | $6,240 | $10,400 |
| Southaven | $290,000 | $4,350 | $8,700 | $14,500 |
At Redfin, we aim to provide exceptional value to our clients. For sellers, we offer competitive listing fees starting as low as 1%.* For buyers, our fees vary by location, designed to enhance your offer’s appeal and boost your chances of securing a home.
Can you negotiate real estate commissions in Mississippi?
Yes, you can negotiate real estate commissions in Mississippi! As there are no federal regulations on commission rates, agents are often open to negotiation based on the nature of the transaction, the required services, and the agent-client relationship.
When negotiating, consider:
- The level of service your agent offers
- Their marketing strategies
- Their local market expertise
Sellers may have leverage to negotiate lower rates if their property is in high demand or expected to sell quickly. Additionally, if the same agent represents both the buyer and the seller in a dual agency situation, there might be opportunities for further reduction in commission fees since only one agent is involved.
Tips for a successful negotiation
- Compare various agents and their commission structures before making a decision.
- Discuss performance-based incentives, such as a higher commission for a quicker sale or a higher final sale price.
- Utilize the property’s location if it’s in a desirable area, as this may encourage agents to accept a lower commission.
Mississippi real estate commission FAQs
What are the changes to real estate commission? Two major updates have changed how commissions are managed: Buyers must now agree to their agent’s fees in writing before touring homes, and in many markets, compensation for buyer’s agents is no longer listed on MLS. Learn more about the real estate commission changes here.
How do the changes impact buyers in Mississippi? Buyers are required to sign an agreement with their agent outlining the commission rate before starting home tours. However, you can still request that the seller cover your agent’s fee as part of your offer.
How do the changes impact sellers in Mississippi? Sellers will continue to negotiate with their listing agent about the compensation they will offer to the buyer’s agent, if any. Any requests or changes to these terms will be addressed during negotiations.
How do you find a real estate agent in Mississippi? If you’re ready to buy or sell a home in Mississippi, Redfin is here to help. Contact a Redfin agent to begin the process.
How can you avoid fees? Selling a property on your own (For Sale By Owner, or FSBO) can help you avoid commission fees. However, FSBO transactions require significant effort, including managing marketing, coordinating showings, and handling 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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