inknet Real Estate News wealthy individuals across the
Digest - December 22, 2005 country showed significant
- In spite of worrying regional differences. New
signs that the real estate market Englanders were most conservative
is slowing down, a survey of in their expectations;
wealthy Americans indicates most Californians were close to the
remain confident property values national average; Floridians were
will continue to appreciate. twice as bullish as the average,
reflecting the soaring property
In a survey conducted by The PNC values of the last few years in
Financial Services Group, Inc., their part of the country.
65% of those surveyed said they
expect to see double-digit ==>Agents Aplenty as Market Cools
increases in value over the next Down
five years. Almost 1 in 3 (31%)
think they will see an increase In many regions of North America,
of 20% or more. the boom in real estate seduced
many people to turn to real
According to Nicholas Buss, estate for a chance to cash in.
senior vice president of PNC, "as For example, in Maryland,
an investment, real estate has Virginia and the DC area, the
been an increasingly dominant number of licensed agents has
asset class over the past five almost doubled in the last six
years... In general, wealthy years. The Northern Virginia real
Americans have not been estate association has been
speculative buyers and they adding about 300 new agents every
remain solidly confident in the month. And across the US there
long term..." was a record high of 2.5 million
agents by the end of 2004.
The survey of almost 1,500
This has made the agent market things more competitive.
much more competitive. And now
that the market seems to be The overheated market has been
cooling, industry observers giving sellers the impression
expect many newbies to soon leave that houses almost sell
the business. themselves, and this has led to
cut rate listing. For instance,
As Susan Haskins, president of some internet-based discount
the Northern Virginia Real Estate services charge a flat fee or as
Association said, "What you're little as 1.5% to get a listing
seeing now are a lot of people the the local MLS system.
coming into the business thinking
they can make a lot of money And of course there are FSBO
quickly and easily. But they sites (For Sale By Owner) which
often have no idea of the hours circumvent real estate agent fees
that you have to put in, or the altogether.
commitment. And they will not
last very long." The way real estate commissions
are shared between agents and
==>Rookie Agents get the smallest brokers varies across the country
commissions and around the world. Agents
usually pay a portion of their
Traditionally, real estate agents commission to their broker to
across the U.S. have made between cover office and administrative
6 and 7% of the sale price of a fees. But these arrangements vary
home. This is usually split from office to office and even
between the buying and the from agent to agent. New agents
listing agent. But the hot market often have to pay their broker as
and the entry of many hungry new much as half their commission.
agents into the field has made More experienced agents can
sometimes set their terms. And their entire commission.
the big producers may get to keep
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