This is normally THE busy season for home buyers, but with the shifting market in real estate, it’s anything but normal.
According to the National Association of Realtors (NAR), as the Fed increased interest rates this year, mortgage rates climbed, stifling existing home sales to below pre-Covid levels. So, across the country, the inventory of existing homes for sale continues to be tight since homeowners who are locked into lower interest rates just can’t afford to move. It follows that home showings are down as well–about 10% nationally. But new construction sales have bounced back to pre-Covid days (source: HUD). New home inventory and median home prices continue to trend upward.
As a result, homes are not turning over as quickly as they did in 2022 and could leave a time gap between closings for real estate agents. One solution to bridge the income gap between closings is a commission advance. A commission advance gives agents a safety net if closings are delayed or coming less frequently than in prior years. With a commission advance, agents do not need to wait until closing to get their commissions—their commissions are paid up front, before the contracts close. Money advanced can be used for business needs that would otherwise stagnate until after closing. This is a much smarter way to make use of the funds an agent has already earned. And a smart way to grow your business in a not-so-normal peak season.
If you’d like more information on how commission advances help agents sell more houses, give RealCommissions a call at (888) 610-0003, email us at info@realcommissions.com, or visit us at www.realcommissions.com.
