Which of the following is true regarding real estate commissions in Michigan?

In Michigan, real estate commissions are typically negotiated between the parties involved in the transaction. This means that the commission structure is not fixed and can vary depending on several factors, such as the property type, local market conditions, the agreement between the agent and the client, and any additional services the agent may provide.

The ability to negotiate commissions allows for flexibility, enabling both the buyer and the seller to arrive at an agreement that suits their specific circumstances. Agents must strive to provide value to their clients to justify their commission, which can often lead to competitive pricing in the market.

This negotiation aspect distinguishes real estate commissions from other aspects of sales that might have mandated fees or pricing structures, reinforcing the essence of cooperative agreement in real estate transactions.