A report published on August 1, 2017 by real estate research firm Collateral Analytics took a deep dive into sales price differential between homes sold by real estate agents and homes sold by owners (FSBO’s). This new research studied variety of geographic markets taking data from 2016-2017. The results clearly show that not only do FSBOs sell for less than comparable home sales, in many cases they sell below the average differential represented by the prevailing commission rate.
While trying to save money, owners who are selling their homes themselves are costing themselves more money than the commission they’d pay a real estate agent!
The study concludes, “It appears that many sellers are avoiding commissions while netting home prices less than they would with an agent-represented MLS sale. They are avoiding commissions at any price, even one that exceeds the commission rate. Perhaps buyers do make low-ball offers to FSBO sellers deducting the entire commission, not just the seller’s portion, in their offers? That would explain the results observed here.”
If you are thinking about selling your home, let’s talk. Even if you decide that selling it yourself is your preferred option, we’d still be happy to share market information with you that will assist your efforts!