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Methodology

How real estate commission works

Real estate commission is the fee paid to brokers when a home sells. In a traditional Minnesota transaction, the seller pays both sides and the buyer's agent receives a percentage. SODL replaces that percentage with a flat $3,000 platform fee and returns the remainder to the buyer as a credit at closing.

What is the typical buyer-side commission in Minnesota?

In most Minnesota transactions, the buyer-side commission falls between 2.5% and 3% of the purchase price, paid by the seller out of sale proceeds at closing. According to the NAR 2024 Profile of Home Buyers and Sellers, the median total commission nationally hovers near 5%, split roughly evenly between listing and buyer-side agents.

$500,000 home × 2.7% buyer-side = $13,500

How is the seller-side commission calculated?

The seller-side (listing) commission is also a percentage of the sale price, typically 2.5%–3% in Minnesota. The seller and listing broker agree to the rate when signing the listing agreement, and the seller pays it at closing out of sale proceeds. The same NAR 2024 Profile of Home Buyers and Sellers shows total commission has gradually declined as fee-for-service models like SODL's have entered the market.

$500,000 home × 2.7% listing side = $13,500

What is SODL's flat-fee model?

SODL replaces the percentage commission with a single flat $3,000 platform fee collected at closing. On the buy side, the remainder of the buyer-side commission flows back to you as a closing credit. On the sell side, you pay $3,000 instead of a listing percentage, and everything you would have paid above that stays in your pocket.

$13,500 buyer-side commission − $3,000 SODL fee = $10,500 buyer credit

How does the buyer credit get applied at closing?

The buyer credit is a lender-approved closing credit, applied on your Closing Disclosure under “Other Credits.” It offsets closing costs — lender fees, title charges, prepaid taxes, and insurance — and is subject to lender credit caps and loan-type rules. Your SODL buyer agent confirms the credit amount with your lender before underwriting so there are no surprises at the table.

Are these numbers exact or illustrative?

All commission figures shown on SODL marketing pages, including the homepage, buy, sell, and calculator pages, are illustrative. Actual rates vary by market, by deal, by broker, and by lender. SODL math uses 2.5%–3% as a typical Minnesota range; your real transaction may land higher or lower.

Methodology last reviewed: June 3, 2026.

SODL is committed to equal housing opportunity. We do not discriminate based on race, color, religion, sex, handicap, familial status, or national origin.