Top Considerations for Downsizing Your Home in Austin

Top Considerations for Downsizing Your Home in Austin

Top Considerations for Downsizing Your Home in Austin

Why Downsizing Matters in Austin Right Now

For many longtime homeowners, downsizing in Austin isn’t just a real estate decision—it’s a lifestyle shift. Austin has changed quickly over the last decade, with rising home values, increased traffic in key corridors, and more choices than ever for low-maintenance living. For empty nesters and older adults, moving to a smaller home in Austin can unlock equity, reduce upkeep, and put you closer to the places you actually use day-to-day—parks, healthcare, culture, and your favorite restaurants.

At the same time, Austin’s market still tends to follow familiar seasonal patterns: spring and early summer usually bring the most listings and buyer activity, while late fall and winter can be quieter (and sometimes more negotiable). Planning your timeline around these rhythms can make the transition smoother, especially if you’re coordinating a home sale and purchase.

Start With the “Why”: Emotional and Practical Reasons to Downsize

The emotional side: simplifying without feeling like you’re giving up

For many homeowners, especially those exploring Austin real estate for empty nesters, the biggest hurdle is emotional. The family home can hold decades of memories. Downsizing can feel like closing a chapter, even when it’s the right move. A helpful reframe is to focus on what you’re gaining: time, freedom, and a home that fits your current life.

  • Green flag: You’re excited about fewer chores and more flexibility.
  • Red flag: You feel pressured to move before you’re ready or without a clear plan for your next lifestyle.

The practical side: costs, maintenance, and future planning

The practical reasons often come down to comfort and predictability. A smaller home typically means fewer repairs, lower utility bills, and a layout that’s easier to navigate. For homeowners thinking ahead, single-story living, fewer stairs, and proximity to medical care can become major priorities—especially when comparing standard homes to retirement homes in Austin TX or age-friendly communities.

Downsizing Benefits Austin Homeowners Often See

The downsizing benefits Austin homeowners enjoy can be significant, but they vary depending on where you move and what you buy. Here are the advantages that come up most often for Austin empty nesters homes and seniors:

  • Lower maintenance: Smaller yards, fewer exterior repairs, and less day-to-day upkeep—especially with condos or townhomes.
  • Potentially lower monthly costs: Lower utilities and insurance can help, though note that HOA dues or higher property taxes in central Austin can offset savings.
  • Better location options: Downsizing can open the door to walkable areas or “lock-and-leave” living closer to amenities.
  • Equity flexibility: Selling a larger home may free up funds for travel, healthcare, or supporting family.
  • Safer, easier layouts: Single-story homes and accessible features can be a long-term win.

One important Texas-specific note: property taxes can change meaningfully when you move. If you currently benefit from exemptions (like homestead or over-65), you’ll want to understand how those apply to your next property and how your new assessed value may affect the bill.

Key Financial Considerations (Austin-Specific)

Property taxes and exemptions

Property taxes are a major line item in Central Texas. If you’re moving to a smaller home in Austin, don’t assume your tax bill will automatically drop. A smaller home in a more expensive area can still carry a higher taxable value. Review homestead and age-based exemptions and confirm what transfers, what needs re-filing, and what timelines apply.

HOA dues: what they cover (and what they don’t)

Many condos for downsizing Austin buyers consider come with HOA dues. These can be a great trade-off if they cover exterior maintenance, landscaping, insurance for common areas, and amenities. But dues vary widely, and special assessments can happen when big projects arise (roof replacement, plumbing upgrades, elevator work).

  • Green flag: Strong reserve funds, clear meeting minutes, and a realistic maintenance plan.
  • Red flag: Low reserves, frequent special assessments, or unclear rules on rentals, renovations, and parking.

Cost-to-move reality check

Downsizing sometimes involves upfront costs: repairs to sell your current home, moving services, storage, new furniture that fits, and potential updates for accessibility. Build a “transition budget” so you’re not surprised mid-move.

Choosing the Right Property Type for Your Next Chapter

One of the most important downsizing tips for seniors is to match the property type to your lifestyle—not just your square footage. In Austin, downsizers commonly consider condos, townhomes, smaller single-family homes, and age-restricted communities.

Condos for downsizing Austin: convenience with shared governance

Condos can be ideal if you want low exterior maintenance and a more walkable lifestyle. They can also be attractive for part-time travelers who want “lock-and-leave” living. The trade-offs: HOA rules, shared walls, and sometimes limited storage.

  • Pros: Low maintenance, amenities, security, often close to dining and culture.
  • Cons: HOA dues, rules/limitations, potential noise, special assessments.

Townhomes and patio homes: a middle ground

Townhomes and patio homes can offer a smaller footprint while still feeling more “house-like.” Some include small yards or private courtyards, which many Austin empty nesters homes buyers appreciate for pets or gardening without the workload of a large lot.

Smaller single-family homes: privacy and flexibility

If you’re not ready for shared walls, a smaller single-family home may be the best fit. Look for one-story floorplans, manageable landscaping, and a layout that supports aging in place (wider hallways, minimal steps, reachable storage).

55+ communities Austin: built for ease and social connection

For some homeowners, 55+ communities Austin offers are appealing because they combine low-maintenance living with social activities, fitness options, and neighbor connections. These communities can also be a strong fit if you want a predictable environment and amenities geared toward older adults.

  • Pros: Community feel, amenities, often designed for accessibility, maintenance support.
  • Cons: HOA/POA fees, rules, location may be farther from central Austin depending on the community.

Best Neighborhoods for Downsizing Austin Buyers Often Consider

The best neighborhoods for downsizing Austin homeowners choose depend on your priorities: walkability, medical access, quiet streets, or being near family. Inventory also matters—some areas skew toward condos, others toward smaller homes or townhomes.

Central Austin: convenience and culture

Central neighborhoods can be attractive if you want shorter drives, more dining options, and easier access to events. However, central locations often come with higher price-per-square-foot and tighter parking. Condos and smaller townhome-style properties are common options here for downsizers who prioritize location over space.

Northwest and West Austin: established communities and quieter pockets

Many downsizers look in Northwest and West Austin for mature trees, established neighborhoods, and proximity to shopping and healthcare. You may find a mix of smaller single-family homes and “patio home” communities, though prices can still be premium depending on the exact area and school zones.

South and Southwest Austin: lifestyle and outdoor access

South Austin appeals to buyers who want parks, trails, and a more laid-back pace while staying within city access. Housing options can range from smaller single-family homes to newer attached products, depending on the pocket. For active adults, trail access and nearby recreation can be a major quality-of-life upgrade.

Suburban edge options: more space for the money

Some homeowners who start by searching for retirement homes in Austin TX ultimately expand their search just outside the urban core to get newer construction, single-story layouts, and community amenities. This can be a smart fit if you’re okay with more driving but want a modern, accessible home and a quieter setting.

Tip: When comparing neighborhoods, test-drive your routine—grocery store, pharmacy, medical offices, and your favorite weekend spots—at the times you actually go.

A Step-by-Step Plan to Downsize Without the Stress

Downsizing goes best when you treat it like a project with phases. Here’s a simple approach that works well for Austin homeowners balancing a home sale and purchase.

Step 1: Define your must-haves (and nice-to-haves)

Write down what truly matters now: single story, fewer steps, walkability, a garage, guest space, or a dedicated office. This helps you avoid buying a smaller home that still doesn’t fit your lifestyle.

Step 2: Get a realistic home value and net proceeds estimate

Before shopping, understand what your current home might sell for in today’s Austin market and what you may net after commissions, repairs, and closing costs. This shapes your purchase budget and reduces uncertainty.

Step 3: Explore financing early (even if you plan to pay cash)

Even many well-qualified buyers benefit from speaking with a lender early. Pre-approval clarifies your true budget and timeline, and it can strengthen your offer if you’re competing for a well-priced listing. If you’re planning to buy before you sell, ask about options that bridge timing gaps.

Step 4: Declutter with a system (not a sprint)

One of the most useful downsizing tips for seniors is to start earlier than you think. Try a room-by-room approach:

  • Sort items into keep, donate, gift, sell, and discard.
  • Measure key furniture pieces and confirm what fits your next home.
  • Prioritize safety and accessibility—avoid bringing bulky items that create tight walkways.

Step 5: Time the sale and purchase strategically

In Austin, spring and early summer often provide more listing choices and strong buyer activity, while late-year timing can be calmer. Your best strategy depends on whether you need to sell first, prefer a rent-back, or want temporary housing between homes. A clear timeline reduces pressure and helps you negotiate confidently.

Inspections, Negotiations, and Closing: What Downsizers Should Watch For

Inspections: focus on big-ticket items and accessibility

Even if the next home is smaller, inspections matter just as much. Pay close attention to the roof, foundation, HVAC, plumbing, and drainage—issues that can be common pain points in Central Texas due to soil conditions and weather swings. Also consider “livability” factors like stair height, bathroom layout, and lighting.

  • Green flag: Clear repair history and maintenance records; reasonable findings for the home’s age.
  • Red flag: Repeated moisture issues, significant foundation movement without documentation, or deferred maintenance that suggests bigger surprises ahead.

Negotiations: price is only one lever

In Austin real estate for empty nesters, negotiating isn’t just about getting the lowest price. You can also negotiate:

  • Seller-paid closing costs
  • Repair credits after inspection
  • A longer closing timeline to coordinate your move
  • Inclusions like appliances, window coverings, or patio furniture

Closing: plan for the practical details

Downsizing often involves coordinating movers, donations, family pickups, and possibly a short-term stay. Build in extra time for utility transfers, HOA document review (if applicable), and a final walk-through focused on agreed repairs and the condition of major systems.

Common Mistakes to Avoid When Downsizing in Austin

  • Underestimating total monthly costs: HOA dues, taxes, insurance, and utilities can change in unexpected ways.
  • Buying based on aesthetics, not layout: A beautiful home with stairs or a tight bathroom can become frustrating over time.
  • Ignoring storage needs: Seasonal items, tools, and keepsakes still need a plan.
  • Waiting too long to declutter: Last-minute sorting adds stress and can lead to paying for unnecessary moving/storage.
  • Overlooking neighborhood daily life: Visit at different times of day to understand traffic, noise, and parking.

Making the Transition Smoother: Practical Strategies That Help

Downsizing is easier when you plan for both logistics and emotions. A few strategies that consistently help Austin homeowners:

  • Create a “memory plan”: Photograph meaningful spaces and items before letting them go, and keep a small curated set of heirlooms.
  • Talk through the guest plan: If family visits often, decide whether you need a second bedroom, a flex space, or nearby short-term lodging options.
  • Prioritize comfort on move-in day: Set up the bedroom and bathroom first, then the kitchen, before tackling décor.
  • Choose a home that supports independence: Good lighting, minimal steps, and easy parking can matter more than extra square footage.

Whether you’re focusing on condos for downsizing Austin buyers love, exploring 55+ communities Austin residents recommend, or simply seeking a smaller single-family home, the goal is the same: a home that fits your life now and supports the years ahead.

Conclusion: Right-Sizing Your Lifestyle in a Fast-Changing City

Downsizing in Austin can be a smart, empowering move for empty nesters and older adults—especially when it’s guided by clear priorities and a realistic budget. Austin’s mix of neighborhoods, condo communities, and age-friendly options makes it possible to trade square footage for convenience, comfort, and time. With thoughtful planning, the right property type, and a step-by-step approach, moving to a smaller home Austin homeowners choose can feel less like a loss and more like a fresh start.

Top Neighborhoods Near UT Austin for Student Living

Top Neighborhoods Near UT Austin for Student Living

Top Neighborhoods Near UT Austin for Student Living

Finding the right place to live can shape your entire college experience. For many families, the biggest questions around UT Austin student housing are practical: How close is it to campus? Is it safe? Can we keep rent manageable? And what does day-to-day life look like in that neighborhood?

Austin is a city of distinct districts, and where students live near UT Austin often comes down to balancing walkability, budget, and lifestyle. This guide breaks down the best neighborhoods near UT Austin for students, with straightforward pros, cons, and local context to help you choose confidently.

Quick Snapshot: What “Near UT” Really Means

In Central Austin, “near UT” can range from a 5-minute walk to a 20–30 minute bus ride or bike commute. The most popular areas for student living in Austin cluster north and west of campus, plus a few neighborhoods just across I-35 and south of Downtown.

Texas-specific market reality to know

  • Leasing is seasonal. Pre-leasing for student apartments Austin often starts months in advance (frequently in late fall through early spring) for an August move-in.
  • Inventory moves fast. The most walkable options close to campus can be competitive, especially for groups.
  • Rates vary by timing and layout. Studios and one-bedrooms near campus typically cost more per person than splitting a 3–5 bedroom house a bit farther out.

How to Choose the Right Neighborhood (A Simple Checklist)

Before touring options, align on these basics. It helps narrow the Austin neighborhoods for students that actually fit your needs.

  • Commute: Walk, bike, bus, or drive? If you plan to park on campus, understand that parking is limited and can be expensive.
  • Budget: Set a realistic “all-in” number (rent + utilities + parking + fees). This matters most when comparing affordable housing UT Austin options.
  • Living style: High-rise apartment, mid-rise, shared house, or small multifamily?
  • Noise tolerance: Some areas are lively late into the night; others are quieter and more residential.
  • Safety habits: No neighborhood is risk-free. Prioritize lighting, secure entry, and smart routines (more on red flags below).

West Campus (Wampus): The Classic UT Student Hub

If you picture the “traditional” UT experience, you’re probably picturing West Campus. It’s the epicenter for renting near UT Austin, and it’s packed with West Campus student apartments, co-ops, Greek life, and walkable food options. For many, it’s the most convenient choice for classes, studying, and campus events.

Why students choose West Campus

  • Walkability: Many buildings are a short walk to UT, especially to the west side of campus.
  • Student-focused housing: Lots of roommate-friendly layouts, furnished options, and by-the-bed leases in some properties.
  • Social scene: Easy to meet people and stay connected to campus life.

What to watch for

  • Price per square foot: Convenience often comes at a premium, especially for newer buildings.
  • Noise and foot traffic: Expect a busier vibe, especially on weekends and game days.
  • Parking: Limited and typically an added monthly cost.

Best fit for

Students who want maximum proximity to UT, prefer an apartment community, and don’t mind a lively environment. If your top priority is minimizing commute time, West Campus often tops the list of best neighborhoods near UT Austin.

North Campus: Quieter, Still Close

North Campus sits just above the main UT area and is often overlooked by first-time renters. It blends older apartment buildings, small multifamily properties, and some single-family rentals. It’s a strong middle ground for students who want convenience without the full intensity of West Campus.

Why students like North Campus

  • Close to campus with a calmer feel: Often more residential and lower-key than West Campus.
  • More variety: From smaller complexes to duplexes and historic homes converted into rentals.
  • Access to Guadalupe (“The Drag”): Quick reach to shops, casual dining, and campus-adjacent services.

Trade-offs

  • Older buildings: Charm is great, but verify A/C performance, insulation, and maintenance responsiveness.
  • Fewer “luxury” amenities: Less likely to have resort-style pools or large gyms on-site.

Best fit for

Students who want a short commute and a more studious environment, including graduate students or anyone who prefers a quieter home base while still renting near UT Austin.

Hyde Park: A Favorite for a “Neighborhood” Feel

Hyde Park student housing is popular with students who want tree-lined streets, coffee shops, and a classic Central Austin vibe. This historic neighborhood north of campus feels more like “real Austin” than a student district, while still staying relatively close to UT by bike, bus, or a short drive.

Why Hyde Park stands out

  • Residential character: A calmer setting that still caters to student life.
  • Housing types: Many students rent garage apartments, duplexes, bungalows, and smaller apartment properties.
  • Local amenities: Neighborhood parks and casual spots for studying or meeting friends.

Trade-offs

  • Commute is usually not a walk: Many students bike or bus rather than walk daily.
  • Older homes: Check for signs of deferred maintenance, pests, or poor soundproofing.
  • Parking can be tight: Especially for houses with multiple roommates.

Best fit for

Students who want a quieter lifestyle, prefer renting a house or smaller property, and don’t mind commuting. Hyde Park is also a strong contender when families look for affordable housing UT Austin relative to West Campus on a per-person basis in shared homes (though prices vary widely by condition and size).

Rosedale: Peaceful, Central, and Often Underrated

Rosedale sits west/northwest of UT and attracts students who want a residential neighborhood with quick access to central corridors. While not as student-dense, it can be a smart choice for those prioritizing quiet streets and a comfortable living environment.

Why it works for students

  • Lower-key vibe: Less late-night activity than student-heavy districts.
  • Mix of rentals: Duplexes, small apartment buildings, and some single-family homes.
  • Convenient to everyday errands: Easy access to grocery, coffee, and neighborhood services.

Things to consider

  • Commute planning matters: Most students rely on driving, biking, or transit rather than walking.
  • Inventory is smaller: Options can be limited, so early searching helps.

Best fit for

Graduate students, upperclassmen, and anyone who wants a quieter home life without being far from campus. It’s a practical addition to any shortlist of Austin neighborhoods for students.

Riverside (East Riverside/Oltorf): More Budget-Friendly with a Commute

When students ask about true budget options, Riverside often comes up. It’s farther from UT than the core central neighborhoods, but it can offer more space for the money—especially in larger apartment communities. For many, this is where affordable housing UT Austin becomes more realistic, as long as you’re comfortable with a longer commute.

Why students consider Riverside

  • Relative affordability: Often more approachable pricing compared to West Campus and other central areas.
  • Apartment availability: Many communities with pools, gyms, and on-site parking.
  • Access to South and East Austin: Dining, music, and outdoor amenities are nearby.

Trade-offs

  • Commute time: Plan for bus routes, traffic, and parking realities on campus.
  • Property-to-property differences: Condition, management quality, and security features vary widely—tour carefully.

Best fit for

Students prioritizing budget and space, especially those who don’t need to be on campus daily. Riverside can be a good answer to “where students live near UT Austin” when cost is the deciding factor.

Mueller: Modern, Master-Planned, and Convenient by Car or Bus

Mueller is a newer, master-planned area northeast of Downtown. It’s not a traditional student neighborhood, but it appeals to students (often graduate students) and parents who want a polished environment, newer construction, and easy access to shopping and green space.

Why it appeals

  • Newer housing stock: Many apartments and townhomes with modern finishes.
  • Amenities: Parks, trails, and a strong “live-work-play” layout.
  • Daily convenience: Grocery and retail options close by.

Trade-offs

  • Not walkable to UT: You’ll plan around transit or driving.
  • Pricing can be mid-to-high: Value depends on unit size and specials at the time of leasing.

Best fit for

Students who want modern living and a quieter routine, and who don’t need a campus-adjacent social scene. It’s a solid alternative in the broader map of student living in Austin.

East Austin (Central East): Culture, Food, and a Short Ride to Campus

Parts of Central East Austin can be a good lifestyle fit for students who want to be near Downtown and enjoy Austin’s restaurant and arts scene. It’s not the first place families think of for UT Austin student housing, but it’s increasingly common for upperclassmen.

Why students choose it

  • Vibrant local scene: Dining, coffee shops, and entertainment close by.
  • Commute options: Depending on the pocket, UT can be a manageable drive, bike, or bus ride.
  • More varied housing: Duplexes, small apartments, and newer builds in some areas.

Trade-offs

  • Micro-markets vary a lot: Block-by-block differences in feel and pricing are common.
  • Noise and nightlife: Great for some, distracting for others.

Best fit for

Independent upperclassmen and graduate students looking for a city lifestyle and willing to commute. It can complement searches for student apartments Austin when West Campus isn’t the right vibe.

How to Rent Near UT Austin: A Step-by-Step Game Plan

Whether you’re comparing West Campus student apartments or scouting Hyde Park student housing, a consistent process helps you avoid surprises.

Step 1: Set your true monthly budget

Ask for a full cost worksheet: base rent, parking, trash, internet, and typical electricity. In Austin summers, A/C use can meaningfully raise electric bills—especially in older buildings.

Step 2: Choose your commute “non-negotiable”

Decide what you’re willing to do daily: walk, bike, bus, or drive. This single decision quickly narrows the best neighborhoods near UT Austin for your situation.

Step 3: Tour with a checklist

  • Cell signal and internet options
  • Noise (street-facing vs. interior unit)
  • Water pressure and A/C performance
  • Locks, lighting, and controlled access
  • Signs of pests or moisture (musty smell, staining)

Step 4: Understand lease structure before applying

  • Joint lease: Roommates share responsibility if someone doesn’t pay.
  • Individual/by-the-bed lease: You lease your room; common in student-oriented buildings. Often easier for roommate changes, but read rules and fees carefully.

Step 5: Apply early for high-demand areas

For popular student apartments Austin options, waiting can mean fewer floor plans and higher pricing. If you want prime locations for renting near UT Austin, plan to start your search well ahead of the fall semester.

Safety, Quality, and Value: Green Flags and Red Flags

Parents and students often ask which areas are “safe.” In real estate, it’s more helpful to focus on the property’s security features, the block’s lighting and activity, and the renter’s daily habits.

Green flags

  • Well-lit parking and entries, working gates, and controlled access where advertised
  • Clear maintenance process and strong online reputation for responsiveness
  • Solid doors/locks, window latches, and visible property upkeep
  • Transparent fee schedule (application, admin, parking, pet, utility billing)

Red flags

  • Pressure to sign immediately without time to review the lease
  • Vague answers about parking, guest policies, or move-out charges
  • Units that smell musty or show visible water staining
  • Broken gates/doors that “have been that way for a while”

Neighborhood Matchmaker: Which Area Fits Which Student?

  • Most walkable to UT: West Campus, North Campus
  • Quiet + classic Austin feel: Hyde Park, Rosedale
  • Budget-first with more space: Riverside (with commute planning)
  • Modern, amenity-rich lifestyle: Mueller (not walkable, but polished)
  • City vibe near Downtown: Central East Austin (micro-area dependent)

Final Take: Picking the Right Fit Near UT Austin

The best choice isn’t always the closest building to campus—it’s the neighborhood that matches your routine, budget, and comfort level. West Campus remains the go-to for convenience and classic student energy, while North Campus, Hyde Park, and Rosedale offer quieter options still close to UT. For students prioritizing cost, Riverside can open doors to more space, and areas like Mueller and parts of East Austin broaden the possibilities for different lifestyles.

As you compare UT Austin student housing options, remember: timing matters in Austin’s leasing cycle, building quality varies block by block, and a clear checklist will help you spot value. With the right approach, you can find a place that supports both academic success and an enjoyable Austin experience.

Hanna fights back against homebuyer commission suit

Parent company of Howard Hanna Real Estate Services argues plaintiff agreed to a mediation clause and, as a buyer, doesn’t have standing to sue under federal and state antitrust laws.

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Hanna Holdings is fighting back against an antitrust lawsuit alleging it conspired with other members of the National Association of Realtors to inflate buyer agent commissions, leading to inflated home prices paid by buyers.

On Aug. 5, the parent company of the brokerage Howard Hanna Real Estate Services filed a motion to dismiss the suit, which is one of several commission suits brought by homebuyers. While nationwide settlements have been announced in major commission cases brought by homesellers, such as Sitzer | Burnett and Moehrl, none cover buyer claims.

The filing asked the U.S. District Court for the Eastern District of Pennsylvania to either toss the case “with prejudice” (meaning permanently) or to transfer it to the Western District of Pennsylvania, where Howard Hanna is based.

“This is a case that should not have been brought, and if it had to be brought, it should not have been brought here,” the filing reads.

“The Complaint is nearly identical to amended complaints filed in another court by the same counsel, also on behalf of home buyers, bringing the same claims challenging National Association of Realtors (NAR) guidelines.”

Homebuyer Scott Davis filed the suit, which seeks class-action status, on May 31. Davis’s counsel, Korein Tillery and Lowey Dannenberg, also represent plaintiffs in three other buyer commission suits known as, Batton 1, Batton 2 and Lutz, after their lead plaintiffs. In March, the Batton 2 plaintiffs dismissed Howard Hanna from their suit without prejudice, meaning the claims could be filed at a later time.

Davis, a North Carolina resident, bought a home in Greensboro in 2022 using a buyer broker from Hanna Holdings subsidiary Allen Tate Real Estate. Hanna’s motion to dismiss argues that Davis’s agreement with Allen Tate included a mediation clause that states “[i]f a dispute arises out of or [is] related to this Agreement or the breach thereof . . .the parties agree first to try in good faith to settle the dispute by mediation before resorting to arbitration, litigation, or some other dispute resolution procedure.”

“Plaintiff failed to honor his contractual requirement to mediate before filing this lawsuit” and therefore the suit should be dismissed, the motion says.

The complaint alleges Hanna Holdings violated federal and state antitrust laws by participating “in the establishment, maintenance, and implementation” of several NAR rules alleged to be anti-competitive, including the trade group’s cooperative compensation rule, also known as the Participation Rule, which requires listing brokers to make an offer of compensation to buyer brokers in order to submit a listing to a Realtor-affiliated multiple listing service.

Hanna’s motion to dismiss contends that Davis doesn’t have the right to sue under those laws.

“Plaintiff lacks standing to bring nearly all of his state law claims because plaintiffs may only sue under the laws of states in which they reside or were injured,” the motion reads.

“Plaintiff sues under the laws of 35 states but resides and purchased his home in just one: North Carolina. All other state law claims must therefore be dismissed.

“Plaintiff also lacks antitrust standing to sue under the Sherman Act and many state laws — including North Carolina law — because, as the Batton court recognized, home buyers are not direct purchasers of the allegedly overpriced buyer-broker services.

“Accordingly, not only are home buyers barred from seeking damages under the Sherman Act and many state laws …, they also cannot obtain an injunction under the Sherman Act or damages under North Carolina’s antitrust statute (or its consumer protection statute) because home seller plaintiffs are more efficient enforcers of the antitrust laws …”

Attorneys for Hanna also argued that Davis “has not plausibly alleged either an agreement among Defendant and the purported coconspirators or a relevant antitrust market.” Davis’s complaint does not name any other defendants but does list several parties as co-conspirators of Hanna, including Anywhere (formerly Realogy), RE/MAX, Keller Williams, HomeServices of America, Compass, eXp World Holdings, Redfin, Weichert Realtors, United Real Estate Group, Douglas Elliman, NAR, local Realtor associations, Realtor-affiliated MLSs, and franchisees and brokers of Hanna Holdings.

A pretrial conference in the case is set for Aug. 20. A trial has not yet been scheduled.

Inman has reached out to the plaintiff’s attorney, Carol O’Keefe of Korein Tillery, for comment and will update this story if and when a response is received.

Read the motion to dismiss:

Email Andrea V. Brambila.

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To succeed in luxury real estate, know your audience

Daniel McVicar, Eloy Carmenate and Victoria Levitam spoke at Inman Luxury Connect in Las Vegas on Tuesday in a panel titled “From City to City: Trends & Opportunities in Emerging Luxury Markets.”

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Want to succeed in the international real estate market? Know your audience.

That’s according to panelists at Inman’s Luxury Connect event in Las Vegas Tuesday, who spoke at a session called “From City to City: Trends & Opportunities in Emerging Luxury Markets.”

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“When a high-net-worth individual in our network is referred, this is a person that is referred with a lot of care and I respect that,” said Daniel McVicar, ambassador and global director for Santandrea Luxury Homes & Top Properties in Milan, Italy.

“In the luxury market, it’s essential that people are taken care of. You don’t want to lose a client because you referred them to the wrong person. You don’t want to lose a friend because you referred them to the wrong person. I consider them friends and family when I receive the referral.”

Eloy Carmenate, a broker associate at Corcoran in Miami, agreed.

“Your client is trusting you to connect to somebody who is important,” Carmenate said. “Network is everything. You have to know the right people.”

In order to do that, you have to become an expert on your clientele, according to Carmenate. He knows where his clients live, where they have second homes, where they travel, how many kids they have, how many times they’ve been married.

“We know a lot about them,” Carmenate said.

You also have to travel to the places you hear your clients talking about, he added.

“Typically, it’s Spain, France, Italy and the U.K.,” he said. “Athens is emerging and we’ve all heard about the phenomenon that’s going on in Portugal.”

You also build your network through the people your clients introduce you to, Carmenate said, noting he had met a recent client with a Swiss connection at an American wedding.

“You never know where the next one is going to come from,” he said.

Victoria Levitam, managing partner at The Agency in Panama City, Panama, knows what her clients want and is using that to sell them on buying in her “very special country.”

“Panama is not just a destination; it’s an incredible opportunity,” Levitam said. “It’s the Singapore of the Americas. Everything in real estate is about location, location, location. Panama is the heart of the world, the heart of the Americas. The connectivity is amazing.”

“We have one of the seven wonders of the world, which is the Panama Canal. It has for several decades been one of the best-kept secrets for local elites and top business leaders around the world where they have chosen Panama because of its capable business environment, logistics and connectivity and security as well.”

Carmenate jumped in. “I’m going to be using you for my referrals. She’s sold me on Panama. I’m going to be visiting there very soon.”

McVicar, who is also a television actor, drew a connection between performing for a broader audience to performing for a client.

“There’s a big crossover,” he said. “Really, you’re a public figure when you’re a real estate professional.”

He advised agents to be themselves, but a version of themselves they create.

“Create a character for yourself to be that character,” he said. “And of course, the secret to acting is listening.”

Asked about emerging markets, Carmenate named Singapore, Dubai and Milan, all of which have good weather, tax conditions and healthcare. He advised agents to stay informed.

“If you’re going to raise the bar with your own clientele, you have to know what you’re talking about,” he said.

“You have to know what’s going on in the world.”

Email Andrea V. Brambila.

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The analyst who predicted a 30% fall in commissions has more to say

At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.

As a managing director at global wealth management and investment banking company Keefe, Bruyette & Woods, Ryan Tomasello leads the firm’s research coverage of fintech software and real estate technology.

Over the years, he’s not only gained deep insights into the publicly-traded companies he covers as a research analyst — including Blend Labs, CoStar Group, nCino, Offerpad, Opendoor and Porch — but a broad knowledge of the industry as a whole.

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Tomasello, who before joining KBW in 2013 was an investment banking analyst at Bank of America Merrill Lynch, will be a featured speaker at Inman Connect Las Vegas taking place at the Aria Resort and Casino from July 30 through Aug.1.

He took time this week to discuss how commission lawsuits and economic uncertainty have combined to create a “watershed moment” that has the entire real estate industry searching for a path through a “no man’s land” that will ultimately lead not only to consolidation, but more disruptive innovation.

Our interview has been edited for length and clarity.

INMAN: There’s a lot of uncertainty over how the commission lawsuits will affect the real estate industry — a lot may depend on whether the DoJ steps in — but it seems there’s general agreement that commission revenue is going to take some kind of hit. How big a hit do you think it will be, and broadly speaking, who do you think the winners and losers will be?

Ryan Tomasello: We’ve said in our past research that we think the decline in commission [revenue] could be upwards of 30 percent over time. That number is based on various data points, ranging from survey data to comparing commission costs in the United States to that of major countries internationally.

I think the key caveat there is that it’s likely to take time. It’s not something that will happen overnight. As much debate as there’s been around how much commissions will decline, there’s an equal amount of debate around how long this impact will take to play out.

From the winners and losers perspective, I think you can bucket the industry between near-term and long-term winners and losers. Over time [changes to commission rules] stand to benefit the major players across the brokerage space that are best in class, brands that are innovative and choose to adapt and thrive in a new type of market structure.

Those types of firms potentially stand to benefit from increased market share in terms of agent count and transaction count. That could very much offset the headwinds from the actual decline in the commission pool, depending on how market share gains shake out.

Does that mean that we could see a wave of mergers and acquisitions? And what does that mean for startups that see opportunities to innovate and be disruptive?

From just traditional brokerage M&A and agent and team consolidation amongst different brokerage brands, I think there’s a growing consensus out there that this whole storyline ends up being an incremental catalyst to drive more consolidation in the brokerage industry. So the players that have a history of consolidating probably continue to capitalize on that consolidation.

There’s an interesting side thread that occurs next to the bigger picture changes to industry structure from an innovation standpoint. We’ve also said that this could be an opportunity for new disruptive models to capitalize on this watershed moment, to essentially ride an increased wave of transparency and provide knowledge to consumers around the transaction and their options and the fees that are involved.

You’re already seeing companies that are trying to go after this, whether it’s new companies or companies that have been around for some time but are kind of folding this into their strategy. Perhaps they’re taking a more novel approach to how they’re pricing out brokerage services, or investing in new platforms that are alternatives to the more traditional transaction methods of today, such as auction platforms and MLS alternatives.

And how does the role of portals change? How does the role of brokerages and agents in the transaction change? We think this ends up being a watershed type of catalyst for that type of disruptive innovation as well.

What is the climate for startup companies like that to actually get funded? And in big-picture terms, interest rates are coming down gradually as inflation eases, even as the stock market is hitting new records. What’s your view that rates can continue to come down without the economy crashing — that the Fed can actually pull off a soft landing?

We’re not rate prognosticators, but based on our own internal economic forecasts we do expect a gradual decline in the long end of the interest rate curve over the next few years. But the question becomes how much of an impact is that going to have for housing in general?

Based on the performance of the stock market, and our general sense of investor sentiment, it does seem like the consensus is for some sort of soft landing, with inflation continuing to come down [without a recession].

The funding environment for real estate, broadly, whether it’s venture capital or growth capital for mature firms, continues to be very low in terms of capital availability.

So I think real estate is still kind of stuck in the mud a bit here in the current environment, despite this expectation that we will ultimately have a soft landing. When you combine the macroeconomic picture and the rate backdrop, that’s still a difficult environment for housing overall — plus all this uncertainty around the lawsuits.

I mean, real estate is in a bit of a no man’s land right now, from an investor standpoint, given all of these very material moving pieces between macro and near term macro and these long-term structural dynamics.

What do you think people will be hoping to learn at Inman Connect Las Vegas? What are you looking forward to?

I think events like Inman are always a great opportunity to get together in person, have face time with folks, and talk about what everyone is seeing on the ground. Whether it’s housing macro or these longer-term structural elements, we’re just looking forward to hearing what other folks are seeing and what other folks are hearing about how these changes are actually playing out in real time, and sharing our perspective on that.

Email Matt Carter

Join us to see Ryan Tomasello live at Inman Connect Las Vegas, July 30-August 1 at the Aria Resort and Casino. Reserve your spot now to gain access to real estate’s premier event.