Clients value their real estate agents and are willing to pay for their services, as revealed in a survey of 3,000 employed U.S. residents by Intel and Dig Insights. However, many consumers are open to negotiating a lower commission and exploring alternative payment models.
The survey findings suggest that awareness of the $418 million National Association of Realtors settlement has led many consumers to consider negotiating compensation with their agents. The survey, which is statistically representative of the working adult population, highlights consumer attitudes towards various real estate topics, including commission structures.
Key insights from the survey include:
– 1 in 4 working U.S. adults would not accept a 2 percent commission rate if they were responsible for paying their agent directly.
– 1 in 3 prefer a flat-fee model over an hourly rate for agent pay.
– Most consumers are willing to pay a traditional percentage of the transaction price for the value an agent provides, even if they would be responsible for the agent’s commission.
Consumers are generally comfortable negotiating terms, especially when it comes to their own money. They also show a preference for flat-fee structures over traditional percentages of the sale price. While some consumers are open to non-traditional compensation models, the majority still prefer the traditional commission structure.
As consumers become more empowered in negotiations, they report feeling comfortable negotiating with brokerages on fees for buyer’s agent services. Despite this willingness to negotiate, most consumers are still willing to pay normal rates for buyer-side services.
The survey results indicate a shift in consumer attitudes towards agent fees and negotiations, with a potential impact on commission rates in the real estate industry. The survey was conducted to capture the opinions and behaviors of Americans related to homebuying, and the results provide insights into consumer preferences and attitudes towards real estate transactions.
The survey conducted by Intel and Dig Insights with 3,000 employed U.S. residents shows that clients see value in their real estate agents and are willing to pay for it. However, many consumers are open to negotiating lower commissions and exploring new payment models. The survey also indicates that potential homebuyers are aware of the National Association of Realtors $418 million settlement and believe it is beneficial for consumers. Consumers are comfortable negotiating terms and fee structures with their agents, with many favoring a flat fee model. Despite this, a majority of consumers are willing to pay a traditional percentage of the transaction price for the services provided by their agent. The survey also shows that consumers are open to negotiating agent fees and are comfortable with negotiating buyer’s agent fees similar to other major purchases. While some consumers may consider lower fees, the majority are still willing to pay the traditional 2% to 3% range for buyer-side services. The survey provides insights into consumer attitudes towards real estate transactions and agent compensation, shedding light on potential shifts in the industry.
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