According to a new survey by Clever Real Estate, home sellers in 2024 spend an average of $54,616 to sell their homes. 42% report the costs exceeded their expectations. In addition, 89% of sellers express regrets with their home sales; the most common reason — they sold too quickly (30%).
High home-selling costs and agent commissions are eating away at American sellers’ profits in 2024. Several months after the landmark National Association of Realtors settlement eliminated NAR’s rules on agent commissions, an overwhelming majority of sellers now want buyers to pay their own agent fees.
The cost breakdown for selling a home is:
Listing agent commission ($11,136)Buyer’s agent commission ($10,467)Repairs ($10,000)Closing costs ($8,000)Concessions ($7,200)Moving expenses ($3,250)Marketing ($2,300)Staging ($2,263)
Had they known the true cost of selling their homes, 89% of sellers would have approached the process differently. With a different strategy, they believe they could have sold their home for an additional $50,000 on average.
Agent Fees Are in a State of Flux
The 2024 NAR settlement eliminated the real estate trade association’s rules on set commissions for real estate agents. According to the Clever Real Estate survey, 94% of home sellers endorse proposed updates to the commission system where buyers would cover their own agent’s fee.
Although home sellers support changes to the commission structure, nearly half (49%) are unaware that sellers pay the buyer’s agent commission under the current system.
More than three-quarters of home sellers (77%) say commission rates influence their choice of a real estate agent. Notably, 60% of those who plan to sell without an agent say they’re doing so precisely because real estate commissions are too expensive.
Despite acknowledging the importance of agents, 77% of home sellers are unaware of agents’ responsibilities during the sales process. More than two-thirds say they believe that artificial intelligence (AI) could outperform human agents.
Agents Oppose NAR Settlement
Unsurprisingly, 70% of real estate agents oppose changes to real estate commissions post-NAR settlement. Only 15% of agents believe the changes will have a positive impact on their business, while 58% expect negative results.
Of the agents who believe the settlement will have a negative impact, 88% think it will discourage first-time buyers from entering the market. Eighty-two percent of Realtors believe the commission changes will hurt buyers, while 42% believe the changes will also negatively impact sellers.
A staggering 95% of surveyed agents expect the new commission structure will cause agents to leave the industry.
The Best Times To Sell a Home
According to property-data provider ATTOM’s annual analysis of the best times to sell a home, the first half of the year — especially the months of May, February, and April — offers the highest seller premiums. The data suggests that from early in the year through summer is not only the busiest season for home buying but also the best time for sellers to list their properties.
ATTOM’s ranking of each month’s greatest seller premiums:
May (13.1%)February (12.8%)April (12.5%)June (12.4%)March (12.2%)January (10.6%)August (10.3%)December (10.0%)July (10.0%)November (9.5%)September (9.5%)October (8.8%).
ATTOM took a deeper dive to uncover the best specific days to sell a home and discovered that May 27 came out on top with a seller premium of 16.2%.
The other best days to sell were February 25 (15.9%), February 17 (15.8%), February 15 (15.7%), February 22 (15.5%), May 25 (15.4%), March 30 (15.2%), March 25 (15.1%), February 28 (15.0%), and February 24 (15.0%).
The Best Places To Live in the U.S.
Now that you’ve sold your home during the best time of the year to maximize seller premiums, where do you move? U.S. News & World Report recently released its 2024-2025 Best Places To Live in the United States list. The new list ranks 150 major U.S. cities based on value, desirability, job market, and quality of life.
Naples, Florida took the top this year due to its strong job market and quality-of-life scores. New data considerations — including a shift from metropolitan area-based data, used in previous editions of the rankings, to city-based data — resulted in many new appearances in the top 25 from places located in the Midwest and South.
The top 10 places to live in the United States according to U.S. News & World Report:
Naples, FloridaBoise, IdahoColorado Springs, ColoradoGreenville, South CarolinaCharlotte, North CarolinaRaleigh, North CarolinaHuntsville, AlabamaVirginia Beach, VirginiaAustin, TexasBoulder, Colorado
“Rising concerns about career prospects, housing affordability and increased cost of goods and services are reflected in this year’s rankings,” says Erika Giovanetti, loans expert and reporter, U.S. News & World Report. “While quality of life remains the top priority for many Americans, a city’s value and job market are becoming increasingly important for those looking for a place to live.”
