Consumers Give Agents High Marks and Want Them to be Paid: Intel

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Consumers still see the value in working with an agent during the homebuying process, and most are willing to pay for the service, according to a new survey of thousands of consumers.

The latest Inman-Dig Insights consumer survey conducted in January showed the vast majority of consumers plan on working with an agent, and most are willing to do what it takes for their agent to be compensated — even if that means paying a commission out of pocket.

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The results are perhaps welcome news for agents who are wading through slow home sales and the aftermath of sweeping business changes that were expected to put downward pressure on commissions.

Just 14 percent of respondents said they didn’t plan on working with a real estate agent. The remaining respondents said they were either already working with an agent or planned to work with one when searching for a home.

Paying the agent

The vast majority of respondents said they would find a way for their buyer’s agent to be paid for their services. 

• Just 15 percent of respondents said they would remove themselves from consideration on purchasing a house if the seller didn’t agree to pay the buyer’s broker fee.
• 41 percent said they would counter a higher price in exchange for the seller paying the commission.
• 56 percent said they would counter at the same price, but with other concessions like waived contingencies or more earnest money in exchange for the seller paying the commission.
• What’s more, 20 percent said they would pay their agent’s fee out of pocket.

Negotiating the commission?

Fifty-one percent of respondents who said they were actively shopping for houses said they signed a buyer-agency agreement in which they agreed that their agent would be compensated at least 2.5 percent of the home price.

Another 15 percent said their agent would receive a 2 percent commission, and 23 percent said their agent would receive less than 2 percent. 

One out of three respondents said they were unaware that commissions were negotiable.

• 29 percent said they successfully negotiated a lower commission with their agent.
• 10 percent said they tried to negotiate their agent’s commission but were unsuccessful at lowering it.
• 28 percent said they were aware that they could negotiate their agent’s commission but didn’t try.
• 33 percent said they weren’t aware that they could negotiate their agent’s commission.

Agents as a net positive

Only a small percentage of the 3,000 respondents said they had a negative opinion of real estate agents, and that outlook largely remained unchanged over the past year, the survey found. 

Just 7 percent of respondents said their opinion of real estate agents had worsened at all in the past 12 months, whereas 54 percent said their opinion hadn’t changed and 41 percent said their opinion of real estate agents improved.

• 61 percent said they had a very or somewhat positive opinion of real estate agents.
• 32 percent said they had a neutral opinion of real estate agents.
• 7 percent said they had a very or somewhat negative opinion of real estate agents.

What about Clear Cooperation?

The industry is nearing a decision on whether to reform or repeal the policy that requires agents to list a home on the MLS within one business day of marketing the property to the public.

Some in the industry are calling for an end to including so-called “negative insights,” such as days on market and price changes, from the MLS. The Intel survey found that a majority of consumers disagree, but many said they wanted more options to keep their listings private.

• 54 percent said homebuyers should be able to see how long a property has been on the market.
• 38 percent said they wanted the option to withhold their property from the MLS, compared to 33 percent who said they believed their agent should be required to put their listing on the MLS. (30 percent said they weren’t sure.)

About the Inman-Dig Insights Consumer Survey

The Inman-Dig Insights consumer survey was conducted from Jan. 7 through Jan. 8 to gauge the opinions and behaviors of Americans related to homebuying. 

The survey sampled a diverse group of 3,000 American adults, who ranged in age from 24 to 65 and were employed either full-time or part-time. The participants were selected to produce a broadly representative breakdown by age, gender and region.

Statistical rigor was maintained throughout the study, and the results should be largely representative of attitudes held by U.S. adults with full- or part-time jobs. Both Inman and Dig Insights are majority-owned by Toronto-based Beringer Capital.

Email Taylor Anderson