Average Real Estate Commission in Iowa

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By Jon Stubbs Updated December 20, 2023

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How commission works | Commission calculator | Best ways to save | Methodology

📊 The data:


We surveyed local agents and found that the average real estate commission in Iowa is 5.66%, which is higher than the national average of 5.37%.

The average total real estate agent commission rate in Iowa is 5.66% of the final sale price. Based on the latest median home sale price in Iowa ($210,484), that translates to a total cost of roughly $11,913.

Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Iowa, the average listing agent fee is 2.96%, while the average buyer’s agent fee is 2.70%.

Real estate agent commissions make up a significant portion of the closing costs for Iowa home sellers. But you don't have to pay the full 5.66% to a traditional agent. If you're selling a home in Iowa, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 27% on realtor fees, or about $3,230 on average.

Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.

How real estate commission works in Iowa

Average listing commission 2.96%
Average buyer's agent commission 2.70%
Total average commission 5.66%
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There are usually two real estate agents involved in the real estate transactions of a home sale:

  • The seller's agent (also called the listing agent), who represents the home seller
  • The buyer's agent, who represents the person buying the home

Based on our research, the average real estate commission paid in Iowa for listing agents is 2.96% of the final home price and 2.70% for buyer's agents, for a total of 5.66%.

» LEARN: How do real estate broker commissions work?

Real estate commission calculator for Iowa

Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Iowa. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.

Who pays realtor fees in Iowa?

When selling real estate in Iowa, commissions paid to real estate agents typically come out of the final sale price of the home. As the seller, these fees do not require paying anything additional upfront.

The listing agent earns their share of the commission by providing their expertise in areas like determining market value, listing the property, and facilitating the closing process. The buyer's agent gets compensated for making the transaction go smoothly by bringing qualified buyers who can meet the negotiated sales terms.

Since the commissions get taken from the final sale amount when the deal closes, sellers do not have to pay agent fees separately.

If reducing the total commissions paid to agents is a priority, Clever can connect sellers with top local listing agents willing to list a property for only 1.5 percent. This allows the seller to keep more of their equity from the sale in their own pocket.

» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!

Why do sellers pay the buyer's real estate agent commission?

Paying the buyer agent's commission can make your home listing more appealing to potential buyers.

Taking on this fee relieves clients of this extra upfront cost in addition to typical expenses like the down payment and closing costs – a heavy financial burden for many.

Offering a competitive buyer agent commission also motivates realtors to actively promote your property to their buyer network.  Local real estate experts advise advertising a buyer agent commission within 0.5 percent of the prevailing rate, currently at 2.70% in Iowa, to optimize the attractiveness of your listing.

Will the NAR lawsuit change how real estate commission works?

A November 2023 lawsuit found the National Association of Realtors (NAR), Homeservices of America, and Keller Williams Realty guilty of misleading sellers into paying high realtor fees.     

The judge agreed with the plaintiffs that sellers should not be on the hook for the buyer's agent commission. It's too early to tell if this decision will change how buyer's agents are paid. We're monitoring the appeal in this case as well as other lawsuits and will keep you updated. 

» READ MORE:

How to save on realtor fees in Iowa

Commission rates are not set in stone. In fact, we found that while 2.96% is the average in Iowa, rates typically fall between 4.54% and 6.80%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.

Listing commission range 2.40%– 3.53%
Buyer's agent commission 2.14%– 3.27%
Total commission range 4.54%– 6.80%
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Can I negotiate realtor commission in Iowa?

Real estate commission is always negotiable. Nationwide, the 627 agents we surveyed said these were their most common reasons for agreeing to lower their commission.

Would you lower your commission for…? Agents who answered yes
Homeowners who also plan to buy with you 72%
Homeowners who are repeat clients 70%
Homeowners with more than one property to sell 67%
Seller’s situation (e.g. divorce or death in the family) 48%
Higher property values 47%
High competition for clients 37%
Homes expected to sell quickly 37%
Periods of low housing inventory 23%
High buyer demand in the area 22%
Houses in excellent condition 19%
Highly experienced home sellers 13%
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Negotiating realtor fees in Iowa depends on two main factors: your situation and the housing market.

Factor You may have an easier time negotiating low rates if...
Your situation
  • You're selling a high-value home
  • You have a personal relationship with a realtor
  • You can offer a realtor repeat business
The Iowa housing market
  • Homes are selling quickly
  • There are relatively few homes listed for sale
  • Home values are rising
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While your personal circumstances differ, the real estate market conditions in Iowa impact all sellers in the area.

In a seller's market with high demand and low inventory, listing agents are typically more willing to reduce commissions since sales are easier. On the other hand, in a buyer's market, there is often pressure on sellers to maintain agent compensation.

Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.

Looking at key market indicators provides insight into current conditions:

  • Inventory Months  
  • Sales Price to List Price Ratio
  • Home Value Trends

If signs indicate Iowa is firmly a seller’s market, you may be in a good position to negotiate a lower commission. However, if conditions favor buyers, it may be harder to get an agent to accept a cheaper rate.

The current state of the Iowa real estate market

Factor Trends Indication
Months of inventory There's 1.5 months of housing inventory on the market Seller's market
Sale-to-list ratio Homes are selling for 97.00% of their listing price Buyer's market
Home values Home values have risen 27.35% year over year Seller's market
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Low commission real estate companies in Iowa 

Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.

Best for most sellers

Semya-Moya

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4.9
Excellent

Listing Fee

1.5% ($3,000 min.)

Customer Rating

5.0 (2,627)

Availability

Nationwide

Overview

Pricing

Reviews

Contact

Overview: If you're looking to sell your home in Iowa and are interested in keeping more money after your sale, Clever is an excellent consideration. We strongly endorse Clever for those wanting premium service with notable commission savings.

✅ Benefits and features: We're impressed by Clever's ability to negotiate up to 50% lower rates with established realtors you'd normally see charging full price. Furthermore, their match-making service is top-tier, inviting acclaim, and comes at no cost or obligation to the client.

🏠 How it works: Clever hooks you up with high-caliber local agents from well-known firms like RE/MAX and Compass. You’ll get to sift through your alternatives to determine your preferred match, all while clinching the remarkable 1.5% listing fee that's on par with what Redfin offers, regardless of your agent selection.

Pros

  • Partner with a big-name brokerage agent at a reduced cost (not a bargain-level agent)
  • Agents accept up to half off their standard commission through Clever
  • Extensive choice in agents - select from a vast pool of esteemed Iowa realtors

Cons

  • No promise of working with a particular agent or brokerage of specific choice
  • Extra services such as home staging, aerial photography, and virtual walkthroughs may incur additional charges (your agent will outline the scope of services during their presentation)

Fee structure

  • 1.5% listing fee ($3,000 minimum) at closing
  • 2–3% buyer’s agent commission at closing
Weighted avg. 5.0 2,627
Trustpilot 5.0 2,402
Google 4.8 225

Website: semya-moya.ru
Phone: 1-833-225-3837
Hours: 11 a.m.–11 p.m. PST, 7 days a week
Address: 6358 Delmar Blvd, Suite 300, Saint Louis, MO 63130

FSBOHOMES

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4.1
Good

Listing Fee

$3,900 at closing

Customer Rating

4.8 (244)

Availability

Local

Overview

Pricing

Reviews

Contact

Overview: For the experienced Iowa City home seller who prefers steering their own selling voyage, FSBOHOMES could be a suitable path to explore.

✅ Benefits and features: FSBOHOMES promotes a fixed-rate, listing-only package teeming with perks such as virtual three-dimensional tours, quality photography services, and personalized yard signage. The offering extends to incorporate promotional campaigns in the local real estate market and visibility on key national property platforms. It also provides flexible payment arrangements, either upfront or at the transaction's conclusion.

🚩 Potential red flags: FSBOHOMES hands the reins to sellers, offering a buffet of tools and services designed to attract buyers yet giving sellers the autonomy to manage their sale. With an emphasis on DIY, the platform doesn't offer traditional brokerage support, but it does empower sellers with professional marketing materials and online exposure.

Pros

  • A comprehensive flat fee service package featuring contemporary marketing tools.
  • Listing flexibility on payment terms to suit individual financial preferences.
  • Custom marketing collateral tailored to elevate the property's appeal.

Cons

  • Listing fees might exceed those of comprehensive discount realty services in the area.
  • The fee structure is subject to variation based on property size and location, and additional charges apply for MLS listings.
  • Absent traditional broker support as per the company's service agreement terms.

Fee structure

  • $3,400 upfront or $3,900 at closing
Weighted Avg. 5.0 23
Google 5.0 23

Website: fsbohomes.com
Phone: (319) 359-2468
Address: 931 25th Ave, Coralville, IA 52241
Areas served: Iowa City, Coralville, North Liberty

Flat Fee Group Iowa

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3.7

Listing Fee

0.25-0.5% at closing

Customer Rating

N/A*

Availability

State-wide

Overview

Pricing

Reviews

Contact

Overview: The unique pricing structure of Flat Fee Group offers potential savings that merit attention, though it's crucial to be discerning when considering their various listing deals.

✅ Benefits and features:  For home sellers situated in Iowa City, Flat Fee Group provides a compelling cost-efficient model, with initial fees set between $399 and $1,995, complemented by modest closing fees of just 0.25% or 0.5%. This innovative approach to fees can translate to marked reductions in costs. Their premium package delivers a comprehensive set of services including a year-long stint on the MLS, hands-on open house events, the provision of yard signage, and support in contracting negotiations.

🚩 Potential red flags: Flat Fee Group encourages sellers to barter closing agent commissions down to the minimum, which might be a mere 1%. This tactic holds the potential for cost-saving, yet it could also influence the cooperation you receive from purchaser's agents in the Iowa City area. Another critical detail is the non-refundable nature of all charges, up-front fees included.

Pros

  • Potential for significant savings compared to traditional brokerages
  • Flexible options between basic and full-service listing packages

Cons

  • Risk of losing the upfront fee if you decide to cancel the service
  • Negotiating low buying agent commissions may restrict selling options
  • Limited availability of local reviews and transaction data, making it challenging to evaluate service quality and success

Fee structure

Basic Listing Package:

  • $399 upfront + 0.5% at closing
  • 1-3% buying agent commission recommended

Premium Listing Package:

  • $799 upfront + 0.5% at closing
  • 1-3% buying agent commission recommended

Full Service Package:

  • $1995 upfront + 0.25% at closing
  • 1-3% buying agent commission recommended

*Not enough data available at this time

Website: flatfeegroup.com

Phone: (515) 770-2491

Address: N/A

Areas served: Altoona, Ames, Ankeny, Bellevue, Belmond, Bennett, Bettendorf, Bloomfield, Boone, Burlington, Cedar Rapids, Clinton, Clive, Coralville, Council Bluffs, Davenport, De Soto, Decorah, Denison, Des Moines, Dubuque, Fort Dodge, Glenwood, Grand Junction, Greene, Grinnell, Grundy Center, Guthrie Center, Indianola, Iowa City, Johnston, Keokuk, Marion, Marshalltown, Mason City, Muscatine, Newton, North Liberty, Oskaloosa, Ottumwa, Pella, Pleasant Hill, Sioux City, Spencer, Storm Lake, Urbandale, Waterloo, Waukee, West Des Moines

» LEARN: How do discount real estate brokers offer lower fees?

Next steps

Thinking of selling your home but don't know where to start? Here are some next steps.

Start interviewing local agents

Set up some listing appointments, where an agent visits your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.

Here's why it's smart to sit down with a few agents before signing with one:

It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business, and will try to sell you on their service.

You can compare pricing and features: Shopping around helps you find the best fit for your specific needs – in terms of fees, experience, and services provided.

Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.

Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.

To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).

Clever has pre-negotiated low commission rates of only 1.5%, with Iowa's top agents. Contact Clever today to find out how much you can save on commission!

👋 Next Steps: Find an agent!

Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).

You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.

Ready to learn more? Click below to take our simple quiz and see your agent matches!

Methodology

We gathered our commission rate data from a survey of 623 of our partner agents. The survey asked about standard local rates for both listing and buying agents. We also asked agents about when and why they're willing to negotiate real estate commissions. 

Additionally, we utilized the following data from Zillow and Realtor.com:

  • Home values, list prices, and sale prices: Based on Zillow data as of August 2023
  • Sale prices and sale-to-list ratios: Based on Redfin data as of February 2023 (unless specified otherwise)
  • Months of inventory: Based on Realtor.com data as of February 2023

Additional resources for Iowa home sellers

Better real estate agents at a better rate

Enter your zip code to see if Clever has a partner agent in your area
If you don't love your Clever partner agent, you can request to meet with another, or shake hands and go a different direction. We offer this because we're confident you're going to love working with a Clever Partner Agent.