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AK Avg Real Estate Commission Rate in Alaska

Alaska is a U.S. state located in the northwest extremity of North America. The Canadian administrative divisions of British Columbia and Yukon border the state to the east, its most extreme western part is Attu Island, and it has a maritime border with Russia to the west across the Bering Strait. To the north are the Chukchi and Beaufort seas–the southern parts of the Arctic Ocean. The Pacific Ocean lies to the south and southwest. It is the largest state in the United States by area and the seventh largest subnational division in the world. In addition, it is the 3rd least populous and the most sparsely populated of the 50 United States; nevertheless, it is by far the most populous territory located mostly north of the 60th parallel in North America, its population (the total estimated at 738,432 by the U.S. Census Bureau in 2015) more than quadrupling the combined populations of Northern Canada and Greenland. Approximately half of Alaska's residents live within the Anchorage metropolitan area. Alaska's economy is dominated by the fishing, natural gas, and oil industries, resources which it has in abundance. Military bases and tourism are also a significant part of the economy.

The United States purchased Alaska from the Russian Empire on March 30, 1867, for 7.2 million U.S. dollars at approximately two cents per acre ($4.74/km2). The area went through several administrative changes before becoming organized as a territory on May 11, 1912. It was admitted as the 49th state of the U.S. on January 3, 1959.

 

Alaska Average Real Estate Agent Commission Rate Fees:

A total commission of 6% is typically asked for by “full service” Agents working for the big national real estate firms in Alaska.  70% of Sellers list with the first Agent they speak to, and we find that most Sellers who agree to pay a full 6% commission do not realize that real estate commissions are NEGOTIABLE!

The national average total real estate commission in 2015 was 5.26% *

 

In Alaska, you will find the following real estate commissions charged*:

Typical Asking Commission: 6.0%

Competitive Commission: 5.0-5.5%

Very Competitive Commission: 4.5-4.99%

 

The median existing single-family home price in the West rose 7.5%, to $372,400, in the second quarter of 2017 compared to the the second quarter of 2016.

 

IMPORTANT

Real Estate Commissions are split between the listing Agent (who works for you to sell your home) and what will be offered on the MLS to any Agent that brings a Buyer to buy your home.  In a typical 6% total commission, the listing Broker is paid 3% and 3% is offered on the MLS to all Agents working with Buyers (so they can see what they will earn if they bring their Buyer to your home and complete the sale).

In a competitive commission structure, ranging from 5% to 5.5%, the listing Agent agrees to a listing commission of 2% to 2.5%, and they will recommend that they offer, on the MLS, a commission of 2.5% to 3.0% to the Buyer’s Agent.  Your Agent will usually tell you that if they offer less than 2.5% on the MLS that your home “won’t be shown”.  This makes sense, in that, all things being equal, the Buyer’s Agent will want as big a payday as possible when they find the right home for their client.  This is also especially true if market conditions favor Buyers in a so-called “Buyer’s Market” (high inventory levels in a period of unstable prices).

When you meet with your listing Agent, also remember that, unless they are a “Broker/Owner”, they will have to split their commission with their employing Broker. High producing Agents can work up to getting 90% of the listing commission from their Broker, but typically less experienced Agents may only receive 50% of the listing commission.

 

AGENTS ARE READY TO BID THEIR COMMISSION RATE TO GET YOUR LISTING

At ListingBidder.com, we first negotiate on your behalf a competitive real estate commission structure with HIGHLY EXPERIENCED, HIGHLY RECOMMENDED Agents who know your LOCAL market (even YOUR NEIGHBORHOOD); each ready to bid for your business.  These Agents are not just ordinary Agents as many of them are broker/owners and they have the best ability to negotiate their commissions and be competitive, in part because they do not have to share their listing commission with the brokerage firm.  This is a direct benefit to you and will save you thousands of dollars in real estate commission fees over the typical fees in Alaska.

 

ARE YOU BUYING IN THE SAME AREA, TOO?

Sellers who are also buying a home in the same local market have a volume discount advantage.  ListingBidder can use this opportunity to negotiate an even better real estate commission rate fee on the sale of your home because the Agent will be more willing to give a deeper discount (a very competitive rate) knowing there is additional commission being earned on the purchase of another home.  Be sure to check the box that you are also buying a home locally to receive these better rates.

 

ARE YOU READY TO RECEIVE COMPETITIVE COMMISSION RATE BIDS?

Click here to see your savings in just 24 hours…

 

DEMOGRAPHICS:

The United States Census Bureau estimates that the population of Alaska was 738,432 on July 1, 2015, a 3.97% increase since the 2010 United States Census.

In 2010, Alaska ranked as the 47th state by population, ahead of North Dakota, Vermont, and Wyoming (and Washington, D.C.).Estimates show North Dakota ahead as of 2017. Alaska is the least densely populated state, and one of the most sparsely populated areas in the world, at 1.2 inhabitants per square mile (0.46/km2), with the next state, Wyoming, at 5.8 inhabitants per square mile (2.2/km2). Alaska is the largest U.S. state by area, and the tenth wealthiest (per capita income). As of November 2014, the state's unemployment rate was 6.6%.  As of 2018, it is one of 14 U.S. states that still has only one telephone area code.

According to the 2010 United States Census, Alaska, had a population of 710,231. In terms of race and ethnicity, the state was 66.7% White (64.1% Non-Hispanic White), 14.8% American Indian and Alaska Native, 5.4% Asian, 3.3% Black or African American, 1.0% Native Hawaiian and Other Pacific Islander, 1.6% from Some Other Race, and 7.3% from Two or More Races. Hispanics or Latinos of any race made up 5.5% of the population.

As of 2011, 50.7% of Alaska's population younger than one year of age belonged to minority groups (i.e., did not have two parents of non-Hispanic white ancestry).

 

ECONOMY:

The 2007 gross state product was $44.9 billion, 45th in the nation. Its per capita personal income for 2007 was $40,042, ranking 15th in the nation. According to a 2013 study by Phoenix Marketing International, Alaska had the fifth-largest number of millionaires per capita in the United States, with a ratio of 6.75 percent. The oil and gas industry dominates the Alaskan economy, with more than 80% of the state's revenues derived from petroleum extraction. Alaska's main export product (excluding oil and natural gas) is seafood, primarily salmon, cod, Pollock and crab.

Agriculture represents a very small fraction of the Alaskan economy. Agricultural production is primarily for consumption within the state and includes nursery stock, dairy products, vegetables, and livestock. Manufacturing is limited, with most foodstuffs and general goods imported from elsewhere.

Employment is primarily in government and industries such as natural resource extraction, shipping, and transportation. Military bases are a significant component of the economy in the Fairbanks North Star, Anchorage and Kodiak Island boroughs, as well as Kodiak. Federal subsidies are also an important part of the economy, allowing the state to keep taxes low. Its industrial outputs are crude petroleum, natural gas, coal, gold, precious metals, zinc and other mining, seafood processing, timber and wood products. There is also a growing service and tourism sector. Tourists have contributed to the economy by supporting local lodging.

 

PERMANENT FUND:

 

The Alaska Permanent Fund is a constitutionally authorized appropriation of oil revenues, established by voters in 1976 to manage a surplus in state petroleum revenues from oil, largely in anticipation of the then recently constructed Trans-Alaska Pipeline System. The fund was originally proposed by Governor Keith Milleron the eve of the 1969 Prudhoe Bay lease sale, out of fear that the legislature would spend the entire proceeds of the sale (which amounted to $900 million) at once. It was later championed by Governor Jay Hammond and Kenai state representative Hugh Malone. It has served as an attractive political prospect ever since, diverting revenues which would normally be deposited into the general fund.

The Alaska Constitution was written so as to discourage dedicating state funds for a particular purpose. The Permanent Fund has become the rare exception to this, mostly due to the political climate of distrust existing during the time of its creation. From its initial principal of $734,000, the fund has grown to $50 billion as a result of oil royalties and capital investment programs. Most if not all the principal is invested conservatively outside Alaska. This has led to frequent calls by Alaskan politicians for the Fund to make investments within Alaska, though such a stance has never gained momentum.

Starting in 1982, dividends from the fund's annual growth have been paid out each year to eligible Alaskans, ranging from an initial $1,000 in 1982 (equal to three years' payout, as the distribution of payments was held up in a lawsuit over the distribution scheme) to $3,269 in 2008 (which included a one-time $1,200 "Resource Rebate"). Every year, the state legislature takes out 8% from the earnings, puts 3% back into the principal for inflation proofing, and the remaining 5% is distributed to all qualifying Alaskans. To qualify for the Permanent Fund Dividend, one must have lived in the state for a minimum of 12 months, maintain constant residency subject to allowable absences, and not be subject to court judgments or criminal convictions which fall under various disqualifying classifications or may subject the payment amount to civil garnishment.

The Permanent Fund is often considered to be one of the leading examples of a "Basic Income" policy in the world.

 

COST OF LIVINGS:

The cost of goods in Alaska has long been higher than in the contiguous 48 states. Federal government employees, particularly United States Postal Service (USPS) workers and active-duty military members, receive a Cost of Living Allowance usually set at 25% of base pay because, while the cost of living has gone down, it is still one of the highest in the country.

Rural Alaska suffers from extremely high prices for food and consumer goods compared to the rest of the country, due to the relatively limited transportation infrastructure.

 

*Data provided by Bankrate.com - Real Estate and Wikipedia - Alaska