The average Oregon real estate commission

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If you’re an Oregon resident getting ready to sell your home, you know it can be a massive undertaking. Understanding the average real estate commission in Oregon will ensure that you have a clear picture of the costs associated with selling your property.

In Oregon, the average Realtor commission in 2022 was 4.99%, which is in line with the typical nationwide range of 4.45% to 6.34%.  Buyers and sellers can expect a similar commission in 2023, and potentially slightly higher. Because real estate commissions can affect how much you’ll make when selling your home, it’s important to understand how real estate commissions work, where they come from, and why the amount can vary so much.

What benefits do you get from paying real estate commission in Oregon?

Even if you’re new to the home selling process, you probably know that finding a reputable real estate agent is key. Although you can sell your home on your own, working with a real estate agent provides distinct advantages. For example, you’ll receive inside information about what buyers are looking for in your area. You’ll also benefit from the agent’s marketing services, which typically reach a larger audience than what you can accomplish on your own. Finally, you’ll learn which parts of your property you can leverage to sell quickly—and for a good profit.

When you have a great Realtor, you’re more likely to sell quickly for a higher price. However, Realtors charge for those services in the form of a commission fee. In 2022, the national average real estate commission rate was 5.37%. This is higher than Oregon’s average of 4.99%, but commissions are expected to rise across the board in 2023.

Furthermore, this number typically fluctuates over time and location. A real estate agent in Portland may be able to command higher commission fees than in less commercial and populated areas. That’s why it’s so important to understand local, statewide, and national commission rates before you complete a listing agreement.

Why do real estate agent fees fluctuate in Oregon over time?

There are many different factors that can affect your real estate commission rate. On a national level, the general state of the economy has a strong impact on home prices and commission rates. On the state and local levels, the specific real estate market you’re in will affect the fees. However, the most important factor is the average home cost in your area.

When you own property in an area where the average home cost is higher, commission rates are often lower. That’s because commissions are based on a percentage, rather than a fixed number. Even if the percentage is lower than the national average, the real estate agent can make significantly more money because the home price is higher.

For example, median home prices in Oregon range from $167,000 in Wheeler County to $965,000 in Hood River County. A 4.99% commission rate in Wheeler County might net $8,333, but in Hood River County, a Realtor could walk away with $48,153 in fees. Therefore, an agent might decide to offer a lower rate in Hood River County, since they’ll earn a significantly higher amount no matter what, but charge a higher rate in Wheeler County.

The good news is that you typically pay the commission out of your home sale funds, rather than paying up front and out of pocket. The commission is then split between the buying and selling agents. The agents typically then pay a percentage of their earnings to their agency or brokerage.

Related: Do buys pay realtor fees?

How to save money on real estate commission in Oregon

When Oregon residents learn how much they’ll have to pay their Realtor, they may be curious to know whether there’s a way to save money on their commission. After all, “losing” over $40,000 to fees can seem like a staggering amount of money, even when your home is selling for just under a million dollars. However, it is possible to save money on agent fees. Many sellers are able to negotiate commission rates, which can lead to better savings.

Here are some ways to save money on Realtor fees:

  • Consider the neighborhood: If your neighborhood is in high demand, your Realtor is more likely to lower their commission rate for your home. How do you know if your neighborhood is in high demand? Compare the average time a home is on the market in your area to the average days on the market in your city and state. If homes sell faster after they’re put on the market, your Realtor is more likely to consider your house a “good risk.” In other words, they can feel comfortable lowering their commission because they’re likely to sell quickly and command good prices.
  • Leverage your home’s condition: When your home has plenty of curb appeal and doesn’t need to be renovated or updated, that can be appealing to Realtors—because it’s also very attractive to buyers. A move-in ready home is less likely to sit on the market and will require a less aggressive marketing push, which will save the Realtor money and may make them more willing to negotiate a lower commission rate.
  • Work with the same Realtor: Finally, the best way to get a lower rate is to work with a Realtor you’ve worked with before. Assuming that you had a positive experience together, your Realtor will know what to expect from you. If they were responsible for your current property, they’ll also be familiar with your home’s features and amenities, as well as the location. Be sure to ask them if they’d be willing to lower their fees in exchange.

Saving money on your real estate commission in Oregon can put more money in your pocket, but keep in mind that none of these methods are foolproof. An agent may decline to reduce their rates, even if you have a newly renovated property in a hot market. It’s also important to note that commission rates may climb in 2023, particularly if we face a recession—but because real estate agents can set their own rates, you can shop around for the best deal possible.

Article Sources:

  1. Clever: "Current Average Real Estate Commission (2022)." Accessed January 27, 2023.
  2. The Oregonian: "Map shows how Oregon home prices vary widely by county." Accessed January 27, 2023.

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