Agent Commission Update
Even if the new NAR commission rules introduced in 2024 didn't affect you, you may be wondering if the average agent commission has changed. A recent survey found that more than 50% of agents are now negotiating commissions with buyers and sellers alike.
As of the 4th quarter of 2024, buyer's agents earned an average of 2.37% in commission. However, the type of property sold affected this average, and agents specializing in luxury homes saw their commissions slide.
The average buyer's agent commission for $1 million-plus homes has decreased to 2.17%, while agents selling homes priced under $500,000 took home an average of 2.46% in commission fees.1
More Buyers Go for Government-Sponsored Loans
As potential buyers look for strategies that will enable them to buy sooner than later, more are considering loans backed by the FHA and VA. These have been a popular choice for first-time buyers as their qualifying guidelines are more relaxed than for conforming loans. Both feature lower minimum FICO scores and down payment requirements.
Last year, FHA loans paid for 24% of primary home purchases, while VA loans were used by 10% of buyers. This adds up to 34% of the home loan market, which is the highest market share since late 2020.
Want to share details of FHA and VA loans with your prospects? Contact me to learn more about the informative marketing materials I can share with you.2
Fannie Mae Predicts Home Prices, Income Trends
Recent data from Fannie Mae's Economic and Strategic Research (ESR) Group suggests that our dreams of lower mortgage rates may not come true for a while. Rates are expected to end the year at 6.5%, which is an increase from previous 6.2% projections.
However, home price growth is expected to slow, dropping from 5.8% in 2024 to 3.5% in 2025. In addition, income growth is expected to outpace both home price and rent increases in 2025. While this may be positive news for buyers, sellers may not be thrilled by the possibility of getting less for their home than expected.3
Take a Closer Look at Your Followers
If you're looking for ways to max out your social media followers, contacts, or friends, hang on a minute...and think quality, not quantity.
Businesses with thousands of followers may look impressive, but some will be bots, with a few trolls thrown in. This is why tracking your social media's engagement quality is important. Here's how to get started.
Take note of every time someone posts to mention how you've helped them, asked you a question, or left you a review. An easy way to do this is to track the following data on a spreadsheet. You'll want to record:
- The social media platform;
- Which post they're reacting to;
- A link to the account of the person who posted;
- A link to the post they interacted with; and
- Their actions: did they comment, message or share? Copy any messages and paste them into a spreadsheet.
You may also see comments that ask other followers if they've actually done business with you. If you spot these, it's time to share a link to your reviews with these people. If someone's asking about your listings, send them a link to your website.
When you've identified those who are genuinely interested in buying or selling a home, these are the ones to nurture...even if they're still window shopping or saving for that first purchase.4
Pending Home Sales Feel Winter's Chill
However, home inventory continues to rise, which may contribute to a more buyer-friendly market. Numbers of new listings jumped by just over 37% in January when compared to December. In addition to more homes to choose from, this shift may contribute to the current slowdown in rising home prices.5
Sources: 1redfin.com, 2jbrec.com, 3mpamag.com, 4buffer.com, 5cnbc.com
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