Who pays the real estate commission in Minnesota?

Who pays the real estate commission in Minnesota?

Who pays the real estate commission in Minnesota?

In a real estate transaction in Minnesota there are two commissions in most of the home sales. It is the buyer’s agent commission and seller’s agent commission. Traditionally all commissions are paid for by the seller, even though the buyers agent represent the buyer in most cases. There are some exceptions to that rule as in for sale by owners and the buyer pays their agents commission, or a non-MLS investor purchase.

What is it?

Commission is normally referred to as compensation to your real estate agent to have representation or in more rare cases to have someone facilitate the sale. If both parties in the transaction have representation, then both agents are compensated for their work for their clients.

Any of fees or commissions charged?

Yes, there is a fee that started out being called a compliance fee after the state regulation that required documents to be readily available for past transactions, so the brokers passed that cost on to the consumer. Then as the brokers used it as an income generating fee, they changed the name to Admin fee. Now it can be still called that or commission directly to the broker. This fee is not given to the agent (unless he is the owner/broker) and goes just to the agent’s company. We generally see the range of these fees from $300-1,500 for both the buyer and the seller. There are exceptions…the Veterans Administration will not allow this fee to be changed to the veteran in a VA financed purchase.


This is a basic review of who pays the real estate commission in Minnesota. Please note commissions are negotiable. Also, note that as a buyer in most cases you can have wonderful and experienced representation without paying your agent’s commission.


Please reach out to me if you have questions about housing in Minnesota at 612-386-8600. Look for more articles and videos in the future on different aspects of real estate and our state of Minnesota.



Real estate is a wonderful investment!

Jeff Anderson

The Anderson Team


RE/MAX Results




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