This report was initially printed on Oct. 28, 2024, completely for subscribers of Intel, the information and analysis arm of Inman. Subscribe to Inman Intel for a deeper evaluation of the enterprise of actual property.
It’s essentially the most contentious U.S. presidential election cycle in current reminiscence — and the brokerage world is just not immune from its affect.
As Intel examined final month, actual property brokers have been tiptoeing round uncomfortable political subjects with a few of their purchasers.
However a brand new survey of three,000 U.S. shoppers in early October reveals the ways in which supporters of the 2 main presidential candidates — Donald Trump and Kamala Harris — typically strategy the homebuying course of by distinctive lenses.
The newest Inman-Dig Insights shopper survey means that in Harris supporters, brokers are discovering purchasers who’re extra keen to belief brokers and to take a conventional strategy to itemizing their properties on the market. In the meantime, purchasers who’re inclined to assist Trump are typically a bit extra reluctant to take an agent’s recommendation, at the same time as they largely nonetheless find yourself on the identical web page.
Intel drills deep this week with breakdowns of energetic homebuyers and sellers, probably near-future patrons, and U.S. shoppers broadly.
The evaluation sheds mild on shopper attitudes on the NAR settlement, fee negotiation practices, and what’s bringing patrons to the market at this time within the first place.
See how Trump supporters and Harris supporters are approaching the market in another way at this time — and the various areas they’ve in widespread — within the full report.
Incomes belief on the margins
In Intel’s month-to-month surveys of actual property professionals, brokerage leaders routinely say they assume purchasers have a low opinion of actual property brokers proper now.
However when Intel surveys working-age U.S. adults throughout the nation, they report the precise reverse.
- Clear majorities of each Harris supporters and Trump supporters report having a optimistic opinion of actual property brokers, with fewer than 1 in 10 members of both group reporting they’ve a detrimental impression of brokers general.
That mentioned, supporters of the Republican presidential ticket had been a bit extra more likely to have an ambivalent and even detrimental angle towards brokers than their Democratic counterparts.
And so they’re much less more likely to say their esteem of brokers has improved over the previous 12 months.
- 42 p.c of Harris supporters say their opinion of actual property brokers has improved over the previous yr, with solely 7 p.c saying their opinion has worsened.
- By comparability, 36 p.c of Trump supporters say they assume extra extremely of brokers at this time than they did a yr in the past, with 9 p.c saying their opinion has worsened.
This reality touches on a broader theme that emerged throughout a spread of questions on this survey: some Trump supporters are likelier to start out out with decrease belief for brokers and the system wherein they function, and should take extra efforts to persuade consequently.
However brokers who put in that additional effort are more likely to break by with their purchasers, the survey outcomes recommend.
The artwork of the deal
When requested concerning the Nationwide Affiliation of Realtors’ proposed settlement, most Individuals say they nonetheless haven’t heard of it.
However Harris supporters in early October had been extra more likely to say they had been not less than loosely acquainted with the NAR deal — and extra more likely to imagine the deal is nice for shoppers.
- 32 p.c of Harris supporters advised the survey that they had been conscious of a current settlement involving NAR. By comparability, 26 p.c of Trump supporters surveyed had been conscious of the settlement.
- 64 p.c of Harris supporters who mentioned that they had heard of the deal had the impression it was good for shoppers. Almost 59 p.c of Trump supporters who had been acquainted with the deal agreed with that concept.
- Nonetheless, 11 p.c of Trump supporters with data of the NAR deal mentioned it was good for neither shoppers nor the actual property business. That’s in comparison with solely 5 p.c of Harris supporters who shared the identical skepticism towards the deal.
These outcomes replicate the opinions of the broader inhabitants, lots of whom will not be seeking to transfer any time quickly, or could solely be beginning to take into account a transfer a number of months down the road.
However the shoppers who had been energetic available on the market — and dealing with brokers — in early October had been rather more engaged with the questions at hand.
An altered battlefield
Intel needed to understand how energetic patrons and sellers are navigating the adjustments, and — as a matter of curiosity — how their approaches is perhaps completely different in response to their voting intention within the coming election.
Intel discovered proof that when they really hit the market, Harris-supporting purchasers are a bit extra deferential to the previous established order — on each the client aspect and the vendor aspect.
And that begins with the fee charges that Harris supporters are agreeing to pay.
Trump supporters available on the market in early October had been extra more likely to report reaching a sub-2 p.c compensation charge with their purchaser’s agent — however no extra more likely to say they achieved that by precise charge negotiation.
- 25 p.c of Trump supporters mentioned they signed an settlement with their purchaser’s agent that pledged to pay near 1.5 p.c of the transaction or much less.
- Solely 17 p.c of Harris supporters mentioned their purchaser’s agent settlement had a compensation charge that low.
This was not essentially on account of Trump supporters driving a harder negotiation, nonetheless.
- 19 p.c of Trump supporters mentioned they efficiently negotiated their purchaser’s agent price down from the next quantity — virtually precisely as many Harris supporters who mentioned the identical.
However which will change as extra purchasers turn into acquainted with the brand new panorama.
- Extra Republicans mentioned they weren’t conscious that their purchaser’s agent price was negotiable earlier than signing the settlement — 35 p.c of Trump supporters vs. solely 29 p.c amongst Harris supporters.
So if it’s not a negotiation query, then why are extra Trump supporters paying decrease fee charges?
It’s tough to say for certain. There could also be different components the survey didn’t ask about — reminiscent of market-specific or brokerage-specific concerns, and even sampling points within the survey itself — that assist clarify the hole on the client aspect.
The survey revealed variations between the 2 teams on the vendor aspect as properly.
Harris supporters who’re itemizing a house had been considerably extra more likely to take a strictly conventional strategy to their itemizing — agreeing up entrance to cowl the agent price for any purchaser who purchases their residence.
- 50 p.c of Harris supporters mentioned they had been taking this conventional strategy to their itemizing, in comparison with 41 p.c of Trump supporters who mentioned the identical.
As a substitute, Trump supporters had been a bit extra more likely to say they had been withholding the client’s agent price up entrance as a negotiating tactic, however that they might be keen to cowl it ultimately.
They had been additionally a bit extra more likely to take a agency stance towards overlaying the price.
And — as seen in response to different settlement-related questions — extra Trump supporters mentioned that they had been unaware of the brand new choices.
The first drivers
Lastly, Intel explored why individuals who have plans to maneuver within the coming months are contemplating taking this step.
Once more, the 2 teams shared a lot in widespread when it got here to their prime causes for transferring. However some distinct variations did emerge within the responses.
Trump supporters usually tend to say they’re transferring as a result of…
- …they’re anticipating, or planning to have, a toddler — Doubtless patrons who assist Trump had been extra more likely to say they had been seeking to purchase a house associated to having a toddler. Greater than 16 p.c of Trump supporters named this as their purpose for doubtlessly shopping for, in comparison with fewer than 12 p.c of Harris supporters who mentioned the identical.
Harris supporters usually tend to say they’re transferring as a result of…
- …they’re drawn to the monetary advantages of homeownership — 28 p.c of Harris supporters gave this purpose, in comparison with 22 p.c of Trump supporters who mentioned the identical.
- …they’re in search of a greater faculty district — 14 p.c of Harris supporters mentioned they had been motivated by higher faculties, in comparison with 11 p.c of pro-Trump shoppers.
- …they need to transfer nearer to household — 30 p.c of Harris supporters chosen this selection, narrowly edging out the 27 p.c of Trump supporters who mentioned the identical.
Taken collectively, it’s clear that Trump supporters and Harris supporters have a lot in widespread, not less than in the case of how they strategy the housing market.
However by bringing purchasers up to the mark and incomes belief the place some are skeptical, brokers might be able to bridge gaps the place they exist in a polarized — and continuously evolving — actual property atmosphere.
Concerning the Inman-Dig Insights shopper survey
The Inman-Dig Insights shopper survey was carried out from Oct. 4-6, 2024, to gauge the opinions and behaviors of Individuals associated to homebuying.
The survey sampled a various group of three,000 American adults, ranging in age from 24 to 65 and employed both full-time or part-time. The contributors had been chosen to provide a broadly consultant breakdown by age, gender and area.
Statistical rigor was maintained all through the research, and the outcomes needs to be largely consultant of attitudes held by U.S. adults on this age group with full- or part-time jobs. Each Inman and Dig Insights are majority-owned by Toronto-based Beringer Capital.
