Jupiter real estate commissions continue to plummet
Over the past 10 years, there isn’t much associated with Jupiter real estate that has become less expensive. The median sales price of a single family home back in 2009 was $322,750 and so far in 2019 it is $535,000. Up 65%. If you look at fees for appraisals, inspections, closing agents, surveys, etc. you will see that over the past decade almost everything associated with a real estate transaction has continued to get more and more expensive.
But, when it comes to the fees paid to real estate brokers representing buyer’s and seller’s of single family homes in Jupiter, the commissions paid over the past 10 years have been falling with about the same speed as a rock dropped off a tall building. Over the same period that home prices jumped 65%, the decline in the number of sellers paying 6% in commissions to sell their Jupiter single family home has dropped a mind blowing 69%. Yes, you heard that right 69%. Back in 2009 almost 8 out of 10 seller’s were paying a 6% commission and so far this year only a little over 2 out of 10 seller’s are paying that lofty rate. Soon, the trend is looking like nobody will be paying a 6% commission and even today those that are should probably be asking why.
It is hard to see an end to this slide, as so far this year the number of sellers paying a 6% commission has dropped an additional 17%. Commissions are plummeting as technology and easy entry into the profession have driven competition to plunge commission rates lower and lower with no end in sight.
Unfortunately, at some point buyer’s and seller’s are giving up quality of what they get for the money paid. That is why seller’s of real estate should interview and ask questions. Buyer’s too should be interviewing to find proper representation. Not only about what they are going to pay to be represented but what are they going to get for that money. How is that broker going to get them the best price for their home. How is that broker going to make sure you do not overpay for a property. Do they really understand the market, the numbers, the quality, the negotiating? It is becoming more and more crucial for a real estate broker to be fully educated on all aspects of a property and how buyers, who have more information than ever, will be enticed to pay top dollar during negotiations. All brokers are not created equal, and you want to be well represented no matter what side of the transaction you are on. Buyer’s brokers and seller’s brokers have very different agendas if they are properly representing their clients.
In the sale of any property, there are thousands, and at times tens of thousands, of dollars at risk and being properly represented is critical. An overpriced home can cost a seller a lot of money at the closing table. An uneducated buyer can make mistakes without proper guidance that they will pay for dearly for in the years ahead. It’s not falling commissions a client should be focused on, it’s what kind of representation they receive that in the end will determine the success of any transaction for either party.
Paradise Sharks takes great pride in using our decades of experience and small business culture to provide our clients world class service and great value. In the end, if we have not done our very best to help our clients make informed decisions we have failed. We have the special sauce it takes to provide great quality and the best prices and take great pride in what we do. No franchise fees, no broker splits and our boutique set up allows us to do more, for less, and it’s a position we love to be in. Saving our clients money and making sure they are informed is what we do. If you are doing real estate anywhere in Palm Beach County, or Martin County, and want to learn how we can make sure you are informed and cost effective decisions please let us know. We are super easy to reach and firstname.lastname@example.org or 561.308.0175 so if we can be of service in any way let’s talk.