December 10, 2023
Some 36% of Black sellers said finding a good agent was difficult, found one report.
As 2024 approaches, numerous homeowners may be thinking about selling their properties. One of the initial questions to address is whether to hire a real estate agent. Given that a home represents the most substantial investment for many Americans, several factors warrant consideration before reaching a decision.
This discovery is among figures provided by Matt Brannon, author of a report titled “Home-Selling Trends: Success and Struggles Heading Into 2024.” Some 1,000 Americans who sold a home in 2022 and 2023 were polled in an online survey in October by Clever Real Estate. About 8.3% of the respondents were Black.
A new reality for home sellers is that the market does not now value their house like before. Buyers are not acting as fast, waiting for mortgage rates and home prices to drop. Brannon says sellers have lowered asking prices to meet buyers’ budgets. As such, the 2023 median home price fell by about $49,000, the largest drop since 2008.
On what home-selling priorities are very important, 58% stated earning the most money as the top reason. Wanting a quicker sale as well as needing the money soon (both 31%) were leading factors in selling without an agent. Some 28% of those quizzed wanted to save on realtor fees/commissions, and 25% opted to handle showings and negotiations.
Intriguingly, the data showed that recent Black home sellers seem more inclined than the average seller to use non-traditional means, including not using an agent or selling directly to a cash buyer. Some 31% of Blacks stated they did not use a real estate agent to sell, higher than the 20% overall.
According to Brannon, his firm’s report can assist Black Americans who plan to sell a home by allowing them to set expectations for what might happen with their sale in “this new market.”
He offered some pros and cons for Black sellers to consider before hiring a real estate agent:
Convenience: Handling a home sale can often feel like a full-time job, so opting to use an agent can help take some of the burden off the seller. Black sellers who did not use an agent were nearly as like to say the process was harder than expected.
Expertise: “About 55% of Black home sellers say they would feel uncomfortable filling out necessary legal paperwork without an agent,” he noted.
Pricing: “A poorly priced home can stay on the market for much longer than anticipated, which gives buyers more leverage to negotiate a lower price. Roughly 65% of Black home sellers who did not use an agent wish they priced their home differently,” Brannon pointed out.
Potential profit: Among all Americans surveyed, those who used a real estate agent tended to make more in profit. Yet, that was not the case with Black sellers who did not use an agent. They made a median profit of about $185,000, nearly $15,000 more than Black sellers in general. “It’s hard to say whether other factors can be influencing this statistic, but it’s not always more profitable to use an agent,” said Brannon.
Picking the right agent: Some 36% of Black sellers said finding a good agent was difficult, while the public was less likely to say that. That could explain why 39% of Black sellers said their agent failed them, said Brannon.
Further, check this out to gain insightful tips to help find a real estate agent.
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