This report was initially revealed 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 latest reminiscence — and the brokerage world shouldn’t be immune from its influence.
As Intel examined final month, actual property brokers have been tiptoeing round uncomfortable political subjects with a few of their shoppers.
However a brand new survey of three,000 U.S. customers in early October reveals the ways in which supporters of the 2 main presidential candidates — Donald Trump and Kamala Harris — generally strategy the homebuying course of via distinctive lenses.
The most recent Inman-Dig Insights shopper survey means that in Harris supporters, brokers are discovering shoppers who’re extra prepared to belief brokers and to take a standard strategy to itemizing their houses on the market. In the meantime, shoppers who’re inclined to help Trump are generally 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 lively homebuyers and sellers, possible near-future patrons, and U.S. customers broadly.
The evaluation sheds gentle on shopper attitudes on the NAR settlement, fee negotiation practices, and what’s bringing patrons to the market right this moment within the first place.
See how Trump supporters and Harris supporters are approaching the market in another way right this moment — and the numerous 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 suppose shoppers 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 damaging impression of brokers general.
That mentioned, supporters of the Republican presidential ticket had been a bit extra prone to have an ambivalent and even damaging angle towards brokers than their Democratic counterparts.
They usually’re much less prone 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 12 months, with solely 7 p.c saying their opinion has worsened.
- By comparability, 36 p.c of Trump supporters say they suppose extra extremely of brokers right this moment than they did a 12 months in the past, with 9 p.c saying their opinion has worsened.
This truth touches on a broader theme that emerged throughout a spread of questions on this survey: some Trump supporters are likelier to begin out with decrease belief for brokers and the system during which they function, and should take extra efforts to persuade in consequence.
However brokers who put in that further effort are prone to break via with their shoppers, the survey outcomes recommend.
The artwork of the deal
When requested in regards to the Nationwide Affiliation of Realtors’ proposed settlement, most People say they nonetheless haven’t heard of it.
However Harris supporters in early October had been extra prone to say they had been at the least loosely conversant in the NAR deal — and extra prone to consider the deal is nice for customers.
- 32 p.c of Harris supporters advised the survey that they had been conscious of a latest 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 customers. Practically 59 p.c of Trump supporters who had been conversant in 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 customers nor the actual property trade. That’s in comparison with solely 5 p.c of Harris supporters who shared the identical skepticism towards the deal.
These outcomes mirror the opinions of the broader inhabitants, a lot of whom usually are not 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 customers who had been lively 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 know the way lively patrons and sellers are navigating the adjustments, and — as a matter of curiosity — how their approaches may be completely different in line with their voting intention within the coming election.
Intel discovered proof that when they really hit the market, Harris-supporting shoppers are a bit extra deferential to the previous establishment — 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 prone to report reaching a sub-2 p.c compensation fee with their purchaser’s agent — however no extra prone to say they achieved that via precise fee 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 fee that low.
This was not essentially on account of Trump supporters driving a more durable negotiation, nonetheless.
- 19 p.c of Trump supporters mentioned they efficiently negotiated their purchaser’s agent payment down from a better quantity — virtually precisely as many Harris supporters who mentioned the identical.
However that will change as extra shoppers grow to be conversant in the brand new panorama.
- Extra Republicans mentioned they weren’t conscious that their purchaser’s agent payment 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 troublesome to say for positive. There could also be different elements the survey didn’t ask about — reminiscent of market-specific or brokerage-specific issues, 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 nicely.
Harris supporters who’re itemizing a house had been considerably extra prone to take a strictly conventional strategy to their itemizing — agreeing up entrance to cowl the agent payment 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 an alternative, Trump supporters had been a bit extra prone to say they had been withholding the client’s agent payment up entrance as a negotiating tactic, however that they’d be prepared to cowl it ultimately.
They had been additionally a bit extra prone to take a agency stance towards protecting the payment.
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 baby — Possible patrons who help Trump had been extra prone to say they had been seeking to purchase a house associated to having a baby. Greater than 16 p.c of Trump supporters named this as their purpose for probably 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 college district — 14 p.c of Harris supporters mentioned they had been motivated by higher faculties, in comparison with 11 p.c of pro-Trump customers.
- …they need to transfer nearer to household — 30 p.c of Harris supporters chosen this feature, 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, at the least with regards to how they strategy the housing market.
However by bringing shoppers on top of things and incomes belief the place some are skeptical, brokers could possibly bridge gaps the place they exist in a polarized — and consistently 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 People 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 individuals had been chosen to supply a broadly consultant breakdown by age, gender and area.
Statistical rigor was maintained all through the examine, 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.
