Realtors own data finds FSBO’s sell quicker and closer to asking price than those listed with an agent
Monday, March 16th, 2009
2/11 The National Association of Realtors (NAR) has released a report that concludes that people who sell by owner get closer to their asking price and sell more quickly than those who list with an agent. NARs report 2008 Profile of Home Buyers and Sellers was based on a questionnaire of 133,000 consumers who purchased a home between July 2007 and June 2008.
According to the report, homes selling by owner reap 97% of their asking price as compared to agent listed homes which come in at 96%. The report also found that an agent listed property took 10 weeks to sell while it takes just 6 weeks to sell by owner.
While the study didn’t specifically mention the cost of a real estate commission, it did suggest that using an agent would result in the seller losing another 6 percent off the sales price in addition to the 1% lost on the asking price. In response to the troubled current market where home prices are falling, sellers need to know that Realtors own suggest that homeowners will end up with more money in their pocket if they sell by owner than they will if they list with an agent.
The NAR report findings provide further evidence of the benefits of selling by owner. In separate studies by Northwestern and Stanford Universities, FSBO sellers were found to be as effective as agents in maximizing the sales price of their homes. After commissions are factored in, the studies reported, sellers who sold by owner actually saved money and realized more equity than sellers who sold through agents. The September 2008 issue of consumers reports magazine reported that FSBO sellers are more likely to get their asking price while agents, on average, deliver a sales price that is $5,000 less than the original asking price.
