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This has been the most contentious US presidential election cycle in recent memory, and the securities industry is not immune.
As Intel investigated last week, real estate agents are sneaking around uncomfortable political topics with some clients.
But a new survey of 3,000 U.S. consumers conducted in early October found that supporters of the two major presidential candidates, Donald Trump and Kamala Harris, offer sometimes unique perspectives on the homebuying process. It has become clear that they are taking this approach.
Among Harris’ supporters, agents are finding customers who trust agents more and take a traditional approach to putting their home on the market, according to Inman-Dig Insights’ latest consumer research. I did. On the other hand, clients who tend to support Trump may be a little more reluctant to accept their agent’s advice, even though they ultimately still think the same way.
This week, Intel is taking a closer look at the breakdown of active home buyers and sellers, prospective buyers, and U.S. consumers in general.
This analysis reveals consumer attitudes toward NAR settlements, fee negotiation practices, and what brings today’s buyers to the market in the first place.
Read the full report to see how Trump and Harris supporters approach the markets differently today, and the many areas they have in common.
Earn trust on the margins
In Intel’s monthly survey of real estate professionals, brokerage leaders consistently say they believe customers currently have a low opinion of real estate agents.
However, when Intel surveyed working-age U.S. adults across the country, they found just the opposite.
A clear majority of both Harris supporters and Trump supporters reported having a positive opinion of real estate agents and a negative impression of real estate agents overall. less than 1 in 10 people in both groups.
That said, supporters of Republican presidential candidates were slightly more likely than Democratic supporters to have ambivalent or negative attitudes toward agents.
They are also less likely to say their opinion of the agent has improved in the past 12 months.
Forty-two percent of Harris supporters say their opinion of real estate agents has improved over the past year, while just 7% say it has worsened. By contrast, 36% of Trump supporters say they rate operatives more highly now than they did a year ago, and 9% say their ratings have worsened.
This fact touches on broader themes that emerged across the survey’s various questions. Some Trump supporters are likely to start with low trust in agents and the systems in which they operate, which may result in greater efforts to persuade them.
But research suggests that agents who make that extra effort are more likely to break up their relationships with clients.
art of trading
When asked about the National Association of Realtors’ settlement, most Americans say they haven’t heard about it yet.
But Harris supporters in early October were more likely to say they were at least broadly aware of the NAR agreement and more likely to believe it was good for consumers.
Thirty-two percent of Harris supporters said in a survey that they were aware of the recent NAR settlement. By contrast, 26% of Trump supporters surveyed were aware of the settlement. Sixty-four percent of Harris supporters who said they had heard about the deal thought it was good for consumers. Nearly 59% of Trump supporters familiar with the deal agreed with the idea. Still, 11% of Trump supporters who knew about the NAR agreement said it was not good for consumers or the real estate industry. By comparison, only 5% of Harris supporters expressed similar skepticism about the deal.
These results reflect the views of a wider range of people, many of whom may not be thinking about moving right away or may start considering moving in the next few months.
However, consumers who were actively participating in the market and working with their agents in early October were far more enthusiastic about the questions at hand.
A completely changed battlefield
We would like to know how buyers and sellers are proactively responding to change and, interestingly, how their approach differs depending on their voting intentions in the next election. I was thinking.
Once in the market, Intel found evidence that clients who supported Harris became a little more respectful of the past status quo on both the buy and sell sides.
And it starts with the commission rate that Harris supporters agree to pay.
Trump supporters in the market in early October were more likely to report that they had achieved a fee rate of less than 2% with a buyer agent, but were less likely to say that they had achieved the fee rate through actual rate negotiations. It was getting low.
25% of Trump supporters said they signed a contract with a buyer agent promising to pay close to or less than 1.5% of the deal value. Only 17% of Ms. Harris’ supporters said the pay rate for buyer agent contracts was that low.
But this is not necessarily because Trump supporters toughened the negotiations.
19% of Trump supporters said they had successfully negotiated lower buyer agent fees, about the same as the majority of Harris supporters who said the same.
However, the situation may change as more clients become accustomed to the new situation.
More Republicans say they didn’t know buyer agent fees were negotiable before signing a contract: 35% of Trump supporters compared to just 29% of Harris supporters.
So if it’s not a matter of negotiation, why are Trump supporters paying lower fees?
It’s hard to say for sure. Other factors not asked about in the survey, such as market-specific or broker-specific considerations or even sampling issues in the survey itself, may help explain the gap on the buy side.
The survey also revealed differences between the two groups on the seller side.
Harris supporters who listed their homes were significantly more likely to take a strictly traditional approach to listing their homes, agreeing upfront to cover the buyer’s agent’s fees.
Fifty percent of Ms. Harris’ supporters said they took this traditional approach to going public, compared with 41% of Mr. Trump’s supporters.
In fact, Trump supporters were slightly more likely to say they withheld buyer agent fees up front as a negotiation tactic, but were willing to pay them in the end.
They were also somewhat more likely to take a resolute stance on paying fees.
And, as in response to other reconciliation-related questions, more Trump supporters said they didn’t know about the new options.
Main driving force
Finally, Intel investigated why people planning to move in the coming months are considering taking this step.
Once again, the two groups had much in common when it came to their primary reasons for moving. However, some clear differences emerged in the responses.
Trump supporters are more likely to say they’re moving because…
…Expecting or planning to have a child — Buyers who likely support Trump are more likely to say they are considering a home purchase in connection with the birth of a child. . More than 16% of Trump supporters cited this as a reason for a likely purchase, compared to less than 12% of Harris supporters.
Harris supporters are likely to say they are moving for the following reasons:
…They are attracted to the economic benefits of homeownership — 28 percent of Harris supporters cited this reason, compared to 22 percent of Trump supporters who said the same. …They want better school districts — 14 percent of Harris supporters said they were motivated by better schools, compared to 11 percent of Trump supporters who wanted better school districts. . …They want to be closer to family — 30 percent of Harris supporters chose this option, narrowly beating 27 percent of Trump supporters who said the same answer.
Overall, it’s clear that Trump and Harris supporters have a lot in common, at least when it comes to how they approach the housing market.
But by keeping clients informed and gaining their trust even when some are skeptical, agents may be able to bridge the gap in a polarizing and ever-evolving real estate landscape.
About Inman-Dig Insights Consumer Research
The Inman-Dig Insights consumer survey was conducted from October 4 to 6, 2024, to assess Americans’ opinions and behaviors regarding homebuying.
The survey surveyed a diverse sample of 3,000 American adults between the ages of 24 and 65 who were employed full-time or part-time. Participants were selected to create 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 in this age group who hold full-time or part-time jobs. Both Inman and Dig Insights are majority-owned by Toronto-based Bellinger Capital.
Email Daniel Huston
