Survey: Most Home Sellers Tried to Negotiate Real Estate Agent Commissions Last Year

Millennial Home Sellers Most Likely to Negotiate for Lower
Commissions; Reluctant to Move to Areas Where Most People Have Differing
Political Views

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 (www.redfin.com),
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.
   One in five checked daily or near daily.
3. Rising mortgage interest rates haven’t deterred most homebuyers.
4. The top economic concerns are income inequality and affordable housing.
5. Many homebuyers, especially Millennials, are hesitant to move to an
   area where people tend to have different political views from their
   own.
6. 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.

About Redfin

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.

For more information or to contact a local Redfin real estate agent,
visit www.redfin.com.
To learn about housing market trends and download data, visit the Redfin
Data Center. To be added to Redfin’s press release distribution
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Contacts

Redfin Journalist Services:
Keena Bean, 917-822-5087
press@redfin.com