The Essential Needs of Buyers

The focus should be on the inventory, not on compromising the customer experience.
The last year saw one of the strongest performances in new-home sales. However, it was also the worst performance for existing-homes sales since 2008. Builders building homes at lower prices and a 33% rise in inventory helped boost new-home sales. Inventory levels are around half what they were before the pandemic. This has hampered existing-home sales. One-third of homes on the market received multiple offers despite higher interest rates. This means that many unhappy buyers were left empty handed.

The consumers who were successful in their transaction were satisfied with the professional representation they received. In the latest profile of home buyers and sellers, a supermajority (75%) indicated that they would use the same agent again in the future. Another 15% indicated, “probably”. The figures are consistent from previous years. Referrals are the top source of business for many members. Their clients have also done well; the median net worth of a typical homeowner is close to $400,000.

Since 2000, there has been 127 millions existing-home sales. If you extrapolate, this translates to 114 million happy buyers. In any business there will be some unhappy customers that will move their business to another company. In a highly competitive market, many businesses fail, and others enter. In 2023, over 100,000 new agents-entrepreneurs will join NAR. Almost as many will leave the industry. Consumers can choose from more than 200,000 brokerages across the U.S. to receive full service, fee-for-service or even do-it yourself.

Some lawyers, rather than acknowledge the competitiveness of this industry, want to bring it to court for cooperative compensation. They use the word “cartel” even though there is no evidence of collusion. And collusion between so many competitors is impossible. These lawsuits will hurt who the most? These lawsuits are primarily aimed at consumers, particularly first-time buyers and those who are first in their family.

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