22
THE SUN
REAL ESTATE
MARCH 31, 2021
Commissions vs. technology: Local knowledge rules
I
’ve never met a seller who didn’t cringe a little at closing when the brokers’ commission checks are cut. They know intellectually that brokers have to be paid but they frequently never really think they were worth the money, especially in today’s world of fast technology. The yin and yang of this is that, yes, anyone can go online and see pretty much every property listed in the areas they’re interested in. However, what about the ones that aren’t listed yet? Don’t think for a minute that brokers who are tapped into the community they do business in don’t know about properties that may be coming on the market; who’s getting a company transfer, who’s retiring, who’s getting divorced, and all other kinds of life events that cause people to sell their homes. This information is great for buyers but it’s also great for sellers. Local knowledge is even more important in today’s real estate market where inventory is very low and homes sell in days with multiple offers. If you as a seller have a broker who
Castles in the Sand LOUISE BOLGER has cultivated qualified buyers for your specific type of home, you may think their commission was money well spent. Experienced brokers bring that knowledge to both buyers and sellers - it cuts both ways. In addition to knowing their market, brokers are a wealth of information not found in online real estate listings. In Florida, the majority of transactions use contracts written by brokers, developed by the Florida Association of Realtors, therefore, avoiding legal expense. They are also in a position to advise sellers on ways to improve the appearance of their homes and recommend small maintenance and clean-out jobs, all of which enhance that vital first impression.
Despite my opinion of the value of a real estate broker, there are plenty of others who don’t agree, including online brokerage companies. These brokers are influenced by the fact that the National Association of Realtors reports that 44% of new home buyers begin their home search online. The brokers are attempting to acquire a larger percentage of the market. Another month has passed, and the Realtor Association of Sarasota and Manatee has come out with its February sales statistics and it’s another recordbreaking month. In February, Manatee County closed 12.8% more single-family home sales than last February, and cash sales were up 10.5%. The median sale price set a new record at $380,000, up 16.9%, and the average sale price was $553,312, up 35.6%. The median time to contract was 13 days compared to 47 days last year, and the month’s supply of properties was .09 compared to 3.4 last year. Condos were also up in all areas, clos-
ing 23.2% more than last February, while cash sales were up 21.1%. The median sale price was $230,000, up 9.5%, and the average sale price was $272,932, up 11.3%. The median time to contract was 34 days compared to 39 last year and the month’s supply of properties was 1.1, compared to 4.5 last year. With the inventory as low as it is there will be an impact on the number of sales going forward this year, which will continue pushing the sale prices up even more. There are a lot of buyers out there who will be very disappointed in the coming months if things don’t turn around. If it makes sellers feel any better, commissions charged by boat brokers surpass home sales by about 4%. And just like home sales, the prices are going up and the inventory is going down. I always thought a computer could never take the place of a real live person when it comes to the largest purchase and sale of your life. Time will tell if I’m right. Stay safe.
