SEATTLE–(BUSINESS WIRE)– A majority of sellers last year tried to negotiate their listing agent’s commission to a lower price, according to a survey of 3,352 homebuyers and sellers across 11 major metropolitan markets conducted in December 2016 by SurveyGizmo and commissioned by Redfin , the next-generation real estate brokerage.
Fifty-seven percent of sellers last year attempted to negotiate their agent’s commission, up from 52 percent in June 2016. The trend was partly driven by Millennial sellers, 66 percent of whom said in December they had attempted to negotiate with their agent.
Savings were prevalent among homebuyers, too. Nearly half (49 percent) said they got a refund, closing-cost contribution or other consideration from their agent worth $100 or more, up from 46 percent who said the same in June.
Following are six major findings:
1.Most sellers are negotiating for lower commissions.
2.Nearly three out of four sellers checked their online home-value estimates at least weekly before deciding to list their home for sale. 3.One in five checked daily or near daily.
4.Rising mortgage interest rates haven’t deterred most homebuyers.
5.The top economic concerns are income inequality and affordable housing.
6.Many homebuyers, especially Millennials, are hesitant to move to an area where people tend to have different political views from their own.
Nearly half of minority homebuyers felt potential discrimination because of their race.
“Millennials are more data savvy than previous generations and naturally comfortable taking advantage of the relatively recent data transparency and technological innovations in the industry,” said Nela Richardson, Redfin chief economist. “This makes them more informed than any cohort the housing market has ever seen, and partly because of that, more willing to negotiate fees. Millennials’ hesitance to move to places where people have different political views suggests that our already deeply divided nation could become even more geographically segregated by ideology. As Millennials age into peak home-buying years, we will continue to see their preferences reflected not only in how homes are bought and sold, but also the makeup of cities and neighborhoods across the country. This carries big implications for the future of our political parties and electoral outcomes.”
For the full report including more findings, charts and a detailed methodology, visit: https://www.redfin.com/blog/2017/03/survey-most-home-sellers-tried-to-negotiate-commissions-last-year.html.
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry’s lowest published error rate. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $40 billion in home sales through 2016.