Memo to full-commission agents: It’s over.
According to a recently released Redfin survey, 60% of homeowners who sold in the last year extracted a discount of at least 41% from the traditional 6% commission.
That means that the ‘norm’ is no longer the norm.
It’s not hard to see why.
The National Association of Realtors reports that 90 percent of home buyers look online for the latest listings.
- Local search terms are most important for buyers.
- Buyers conduct an average of 11 online searches before shifting from looking to active buying.
- The most common search phrase combines the local city or market (i.e., ‘Chicago’) with “houses for sale”
- Over half of buyers’ actions are a direct result of what they find through online search
- With buyers finding houses themselves, the key to selling is ensuring that your listing is everywhere online that buyers look. The added advantage of getting online through a local agent is shrinking.
As well, buyers research online for neighborhood, mortgage and financial information, no longer turning first to agents.
What added value do listing agents offer? For sellers who aren’t often home, or who can’t manage the hands-on aspects of selling themselves, it might be worth it to pay 3% of the sale price of the house to an agent.For many families, though, that 3% — which typically translates to $5,000 to $7,000 – is hard-won equity that they want to protect.At the very least, the Redfin findings indicate that every seller needs to question the rationale for the traditional commission and demand a better deal.