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Posted On Thursday, 29 February 2024 12:59

Lending Tree's latest survey found that nearly two-thirds of homebuyers or sellers who asked their real estate agent for a lower commission fee were successful. Here's what else they found.

  • While just 31% of homebuyers or sellers have attempted to negotiate real estate agent commission fees when buying or selling, 64% of those who asked successfully reduced theirs. Additionally, 36% say they weren’t aware negotiating was an option but would have tried if they were. Overall, 84% of Americans believe real estate agents should be flexible with their commission.
  • Among homebuyers or sellers, 48% admit they don’t know what percent commission their agent received in their last transaction. 44% of those who do know say their agent received between 3.00% to 4.99% in their last transaction, while 30% say it was 5.00% or higher. 
  • 64% of Americans believe a real estate agent is at least somewhat necessary when buying or selling. However, 44% say they would attempt a real estate transaction without an agent. When asked if they think online tools and services have made agents less necessary in transactions, 64% agreed.
  • 11% of Americans said the buyer should be responsible for the entire commission, and 20% said the seller. Over a third (35%) of homebuyers or sellers say they’ve been asked to pay the other party’s real estate agent fees in a transaction — more commonly the buyer than the seller.

You can check out our full report here: https://www.lendingtree.com/home/mortgage/real-estate-survey/

LendingTree's Senior Economist and report author, Jacob Channel, had this to say. 

"Remember, real estate agent fees aren’t necessarily set in stone. While most home buyers and sellers don’t attempt to negotiate fees, a majority of those who do have gotten their fees lowered. This goes to show how important it is to advocate for yourself during all stages of the homebuying/selling process. If you don’t ask for a better deal, you’re unlikely to get one."

Posted On Thursday, 29 February 2024 08:32 Written by
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Florida’s condo market is faltering as the increasing intensity of natural disasters pushes up home insurance costs, and HOA fees soar in the wake of the 2021 Surfside condo collapse

Prices of condos in major Florida metros are dropping year over year, and sales are declining, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. New condo listings are soaring as sellers try to offload their properties. That differs from the U.S. as a whole, where condo prices are rising, sales are holding steady and new listings are increasing at a much slower rate.

In the Jacksonville metro, for instance, the median condo price declined roughly 7% year over year in January, sales declined 27%, and new listings increased 32%. The story is similar in Miami, where condo prices fell 3%, sales dropped 9% and new listings rose 27%.

Florida’s market for single-family homes is faring better. Take Miami as an example: The median sale price of single-family homes increased by double digits from a year earlier in January, sales rose 9% and new listings increased 13%.

Florida Redfin agents say climbing costs are making condo ownership unattractive

Redfin agents report that Florida’s condo sales are slow because the cost of buying a condo has shot up, and listings are skyrocketing because the cost of owning a condo has shot up. The average cost of homeowners insurance across Florida increased by about 40% in 2023 alone, according to reports, and homeowners association (HOA) fees are multiplying for many condo buildings. In addition to slowing demand, the rising cost of insurance and fees are pushing prices down.

While condo prices are down from a year ago, they’re still much higher than they were before the pandemic—an affordability challenge that’s being exacerbated by rising insurance and HOA expenses.

“Condo costs are shocking,” said Juan Castro, a Redfin Premier agent in Orlando. “Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It’s causing buyers to rethink their plans.”

Florida’s HOA fees are increasing because there are new condo regulations in place this year in the wake of the 2021 Surfside condo collapse. The regulations require HOAs to regularly assess the safety of condo buildings, and in many cases collect more money for maintenance and repairs. HOA fees typically include a condo owner’s portion of insurance costs for the exterior of a building, while homeowners have a separate policy covering the interior of their condo.

In some situations, it’s also more difficult to attain a condo mortgage than a single-family home mortgage, even though condos are often considered a more affordable option. That’s because lenders require borrowers to have enough money to cover HOA dues, and also take into consideration the financial health of the condo building before writing a loan.

Home insurance costs are skyrocketing in Florida due to the increasing intensity of hurricanes and other natural disasters, with some insurance companies leaving the state altogether. Homeowners’ insurance costs three times more in Florida than the national average, making it the most expensive state in the U.S. to insure a home.

“Condos are sitting on the market much longer than they used to, with less interest from buyers,” said Jacksonville Redfin Premier agent Heather Kruayai. “Sky-high HOA costs are pushing buyers out of their monthly budget.”

To read the full report, complete with a table that includes more data, please visit: https://www.redfin.com/news/florida-condo-prices-dropping/

Posted On Tuesday, 27 February 2024 05:38 Written by
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