General Real Estate News

Starting this August, commissions for buyer’s agents will no longer be posted in the MLS. Up to now most of the time when I have worked with buyers I have been paid by the seller. The payment was listed in the MLS (Multiple Listing Service) and guaranteed.

In fact, for many years we could not list a home in the MLS without including some payment for buyer’s agents. The MLS is a property database that belongs to Realtors and is the source of homes for sale. The data is fed to real estate company websites and large national real estate websites.

Home sellers may continue to pay out commissions to buyers agents or maybe not. Advertising the buyer’s agent commissions in the MLS was a huge incentive for buyer’s agents.

When buyers sign a contract with their agent agreeing to pay that agent X amount they need to make sure they have the funds to pay that agent. Before signing a buyer representation contract know where the money to pay your buyer’s agent will come from.

Look for an alternative to paying a commission based on a percentage of the value of a house. Be prepared to negotiate with your agent. Be open to the idea of paying for individual services up front rather than paying for full service when the purchase closes. There will be more about this in the coming months.

 

On Monday I wrote about the typical home buyer and on Tuesday I wrote about the typical home seller. Today I am writing about the typical Realtor using statistics from the National Association of Realtors.

In advertising and in the media Realtors are often portrayed as men in suites or as young women. Neither is accurate.

Here are some demographics:

• Sixty-four percent of REALTORS® were licensed sales agents, 20 percent held broker licenses, and 18 percent held broker associate licenses.
• The typical REALTOR® is a 60-year-old white female who attended college and is a homeowner.
• 62% of all REALTORS® are female, and the median age of all REALTORS® is 60.
• Real-estate experience of all REALTORS® (median): 11 years
• Median tenure at present firm (all REALTORS®): 6 years
• Most REALTORS® worked 30 hours per week in 2022.
• The median gross income of REALTORS®—income earned from real estate activities—was $56,400 in 2022, an increase from $54,300 in 2021.
• Median number of transaction sides in 2022:
  • Residential sides for all REALTORS®: 12
  • Residential sides for residential specialist broker/broker associates only: 14
  • Residential sides for residential specialists only: 10
  • Residential sides for commercial specialists only: 4
  • Commercial sides for commercial specialists only: 5
• Formal education of REALTORS®:
  • Some college: 30%
  • Bachelor’s degree: 31%
  • Graduate degree and above: 12%
  • Associate degree: 12%
  • Some graduate school: 6%
  • High-school graduate: 8%
• REALTOR® affiliation with firms:
  • Independent contractor: 89%
  • Employee: 4%
  • Other: 7%

When you think of Realtors picture older women who are independent contractors.

This just in from the National Association of Realtors. During my career, the oldest home buyer I ever worked with was 81 and the youngest was 19. I have had clients in all age groups and from all over the country.

Here is a breakdown by age group of home buyers in the U.S. over the last two years:

 

House payments, or mortgage payments as I like to call them reached a new high last week in the US. The median U.S. monthly housing payment set a record high at $2,894 during the four weeks ending May 5, up 14% from one year earlier, according to new data from Redfin (NASDAQ:RDFN).

At the same time, the first quarter of 2024 ended with 45.8% of mortgaged residential properties considered equity-rich, according to new data from ATTOM. This is down from 46.1% in the fourth quarter of 2023, marking the third straight quarterly decline, and it is also down from 47.2% in the first quarter of 2023, hitting the lowest point in two years. [WRENews]

Local data shows that home buyers are on average paying more than the asking price for the homes they buy which indicates that prices are still going up.

I read a lot of news each day. I try to sort through the crap and find the facts.

Despite the hype over homeownership, I can’t see an upside to paying high interest rates on a mortgage for an overpriced house.  In other news, the New York Times just launched a new “Rent Vs. Buy” calculator, and under some scenarios, people save $130,000 by renting rather than owning.

Sure there is a tax deduction for mortgage interest paid on a home loan but that is only for people who can itemize.

Don’t get me wrong. I am strongly in favor of homeownership but not at any cost. Please buy responsibly and consider more affordable options when available.