The Impact of Elections When Buying a Home

By Gray Group

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Lately, I’ve been getting questions like, “What kind of services am I paying my agent for?” and others related to forms, commissions, and the fall real estate market. I’m here to help bring clarity and a better understanding of what’s happening in real estate and what to expect for the last months of the year and in 2025.

Forms. Since mid-August, we have been using the new buyer agreement forms, clearly stating how much buyer’s agents are going to charge and who’s going to pay for it. Buyers need to sign this form upfront before they get a showing of a house they like.

While it’s extra work for buyers and agents, it’s a good step because now, you are aware of your agent’s fee, commission, and compensation. After signing the form, it’s business as usual.

Commissions. Agents help buyers write offers and submit them to the seller, and sellers are usually open to paying for those commissions. Things are a bit different now that sellers are not obligated to pay for buyer’s agents.

On the seller side, there’s a mix of old and new mindsets. Many sellers think, “I’m not going to have to pay commissions.” However, as a seller, offering compensation is still necessary because those agents bring you buyers. At the end of the day, the buyer is the one really paying for it because they’re funding the sale.

Let me share a scenario we experienced. This month, we had four pending listings. Two had buyer agents writing in a 2.5% commission for the seller to pay, while the other two offered 3%. Sometimes, we can negotiate that down, and the seller might feel comfortable offering a lower percentage; in other cases, the buyer’s agent will hold firm on that 3%. When that happens, the buyer often pays the difference.

Negotiations all depend on your situation. Remember: no two deals are alike, just like no two people or negotiations are the same. You’ll know everything upfront before anyone agrees to move forward, which is a huge benefit in this market.

Market conditions. The market has more inventory right now, which is great for buyers. However, with more homes available, we also see longer days on the market. This is normal this time of year, especially with the holidays and natural lull in the fall season.

We’re also seeing price reductions, another good opportunity for buyers to snag a deal if they’re in the market. Just a heads-up: if you need a loan, interest rates have gone up a bit. But don’t worry—many lenders are offering free refinancing for the next year, so it’s worth checking out.

Presidential election. Many people are pulling back from the market due to uncertainty and some hesitation from buyers because of the election. After the election, predictions suggest a potential 12.5% increase in market activity. No one can tell for sure if we will see that immediately in this fall season, later in the year, or in 2025, but an increase in market activity is expected soon.

What does that mean for you as a consumer? ** ** Well, if there’s going to be an increase in activity, that usually means an increase in price. Right now is still a great time. So be sure to ask all your questions.

If you are wondering about what’s going on and what it might look like for you if you were to make a move this fall instead of the spring, you want to have all the information upfront. Give us a call or send us a DM at (916) 247-2349 or danagrayre@gmail.com. Let us know how we can help.