The Chicago Real Estate Commission Study 2025
Executive Summary
This analysis of 1,247 Chicago home sales from the last 90 days shows listing commission rates and costs for traditional brokers. Chicago sellers using traditional brokers pay an average of $11,970 in listing fees (2.52% of median $475K home), while Net Gain Realty's flat fee is $1,995 - representing potential 83.3% savings on listing commission.
Key Findings
- Average listing commission rate: 2.52% of sale price
- Traditional listing commission: $11,970 on median $475K home
- Net Gain Realty flat fee: $1,995 (potential 83.3% savings on listing fees)
- Buyer broker compensation: Now negotiable per NAR settlement (not included in comparison)
Methodology and Data Sources
This study analyzes listing commission structures across Chicago residential sales from May 22 through August 21, 2025 (last 90 days). Following the NAR settlement implementation, this analysis focuses exclusively on listing agent compensation, as buyer broker compensation is now separately negotiable. Data sources include:
- Chicago MLS (Multiple Listing Service): Primary source for transaction data, listing commission rates, and property details from last 90 days
- Cook County Recorder's Office: Public records for verified sale prices and closing dates
Data Analysis
This analysis is based solely on Chicago MLS data from the last 90 days. Commission rates were calculated from available listing data. No performance comparisons are included as Net Gain Realty has not completed transactions to date.
Commission Rate Analysis
Listing Commission Analysis (Post-NAR Settlement)
Important: Following the NAR settlement, buyer broker compensation is now negotiable and not included in listing commission comparisons. This analysis focuses exclusively on listing agent compensation.
| Commission Component | Average Rate | Cost on $475K Home | Market Range |
|---|---|---|---|
| Traditional Listing Agent Commission | 2.52% | $11,970 | 2.0% - 3.0% |
| Net Gain Realty Flat Fee | Flat $1,995 | $1,995 | Fixed Rate |
| Potential Listing Fee Savings | 83.3% Reduction | $9,975 | Estimated |
Buyer Broker Compensation Transparency
Complete Transparency: As a listing-only brokerage, Net Gain Realty provides full transparency about all costs:
- Our Listing Fee: $1,995 (what you pay us to list and market your home)
- Buyer Broker Compensation: Negotiable amount you choose to offer (typically $8,000-$15,000 in Chicago)
- Your Control: You decide buyer agent compensation based on market conditions and negotiation strategy
This analysis compares only listing fees. Buyer broker compensation is a separate business decision you control.
Neighborhood-Specific Listing Commission Analysis
Listing commission cost comparisons by neighborhood based on median home prices (listing fees only - buyer broker compensation separate):
| Neighborhood | Median Price | Traditional Listing Fee (2.52%) | Net Gain Flat Fee | Potential Savings |
|---|---|---|---|---|
| Wicker Park | $652,000 | $16,430 | $1,995 | $14,435 |
| Lincoln Park | $640,000 | $16,128 | $1,995 | $14,133 |
| West Loop | $558,000 | $14,062 | $1,995 | $12,067 |
| Logan Square | $515,000 | $12,978 | $1,995 | $10,983 |
| Lake View | $500,000 | $12,600 | $1,995 | $10,605 |
Market Reality: What Actually Matters
The Truth About Real Estate Success
In today's Chicago market, success depends on one critical factor: accurate pricing from day one. The market does most of the work when a property is priced correctly.
- Market-driven sales: Properly priced homes sell regardless of commission structure
- Pricing accuracy: The most important factor for quick sales and maximum value
- Service parity: MLS listing, photography, and showing coordination are standard across all brokers
- Cost transparency: Flat fee model provides clear, predictable listing costs
NAR Settlement Impact Analysis
The August 2024 NAR settlement significantly impacted Chicago's commission landscape:
Key Changes Affecting Chicago Sellers
- Buyer Agency Agreements: Required before property showings
- Separate Commission Negotiations: Listing and buyer agent fees negotiated independently
- MLS Display Changes: Buyer agent compensation no longer shown on MLS
- Seller Control: Complete discretion over buyer agent compensation
Market Impact
- Separate negotiations: Listing and buyer broker compensation now negotiated independently
- Increased transparency: Sellers have full control over buyer broker compensation decisions
- Market adaptation: Industry adjusting to new compensation structures
- Consumer awareness: Growing understanding of separate fee components
Study Conclusions
Primary Findings
- Listing Commission Costs: Chicago sellers using traditional brokers pay an average of $11,970 in listing fees (2.52% of median $475K home)
- Potential Cost Savings: Net Gain Realty's $1,995 flat fee represents potential savings of $9,975 (83.3% reduction) on listing commission
- NAR Settlement Impact: Buyer broker compensation is now separately negotiable, allowing for honest listing fee comparisons
- Market Reality: Success depends primarily on accurate pricing from day one - the market does the work when priced correctly
Market Implications
The Chicago real estate market is adapting to new transparency requirements following the NAR settlement. This benefits consumers through:
- Clear separation of listing and buyer broker compensation
- Transparent flat fee options for listing services
- Greater seller control over buyer broker compensation decisions
- Focus on accurate pricing rather than commission-driven strategies
About This Study
Research Team
Net Gain Realty Market Analysis Division
Licensed Illinois Real Estate Broker (#471.022195)
Chicago Association of REALTORS® Member
Illinois Association of REALTORS® Member
Data Source
This analysis is based on Chicago MLS data from the last 90 days (May 22 - August 21, 2025). No peer review was conducted - this represents market analysis by Net Gain Realty.
How to Cite This Study
Net Gain Realty Market Analysis Division. (2025). The Chicago Real Estate Commission Study 2025. Chicago, IL: Net Gain Realty. Retrieved from https://netgain.realty/chicago-real-estate-commission-study-2025
Data Availability and Methodology
Complete datasets, statistical analyses, and methodology documentation are available for academic and industry research purposes. Contact our research division for access to:
- Raw transaction data (anonymized)
- Statistical analysis code and results
- Methodology documentation
- Peer review correspondence