Jupiter real estate commissions plummet to 9th straight record low
The expense of hiring a qualified real estate broker to professionally market a single family home in Jupiter, Florida continues to plummet in what almost looks like a death spiral. The percentage of homes that sold with a commission under 3%, offered to the buyer’s broker, dropped another 17% in 2018. It was the 4th straight year this percentage has dropped over 10%.
In fact, if you sold your Jupiter single family home last year, and a 3% co-broke commission was offered through the Multiple Listing Service you were in, what is becoming, a small minority. In 2018 only 29% offered such a lofty commission and this was well down from 35% the year before.
The death spiral comes after 9 straight annual declines in the percentage of real estate brokers being compensated 3% for representing buyers of Jupiter single family homes. The drop has been mind boggling, from 77% in 2009, to 29% in 2018. That is an overall drop of 62% and it isn’t going to get any easier for real estate brokers to keep their revenue climbing higher.
You see, the number of people entering the field of real estate, which really has a very simple point of entry continues to grow. Pending home sales in the Jupiter area stand at 6 year lows and as of December 1st were almost 20% below year ago levels. What we have is a service based industry with significantly more brokers, chasing significantly fewer sales opportunities, at significantly lower commissions.
It’s not a pretty picture for real estate brokers but it is a very pretty picture for sellers as the cost of hiring a real estate broker is at an all time low and most likely dropping further. Many see the industry changing into an online marketplace where technology is in charge and robot-like Realtors open doors for people who have selected their home on line to make sure it is the house for them. One can only hope that is really not the world we are turning into.
Qualified brokers, who understand the market, who understand real estate (the business and the construction) will always play a role because no matter how many people feel that a house is just another commodity to be traded over the counter it never will be. It is critical that anybody hiring a real estate broker to represent them in a sale or purchase be informed and ensure they are partnered with someone looking out for their best interest. Never has this been more important than today.
Our passion at Paradise Sharks has been the same since the day we started our boutique real estate brokerage five years ago. The stated mission then, as it remains today, is to educate buyers and sellers and ensure they are able to get the best value for high quality real estate services. We are confident it is extremely difficult for anyone to provide a higher level of service at a lower cost that we can. We take the middleman right out of the real estate transaction. No franchise fees to pay. No broker splits to pay. Just decades of experience focused on your goals and a high level of service at the best value you will find anywhere. To learn more and discuss how we can help; you meet your goals just give us a shout at 561.308.0175 or firstname.lastname@example.org.