Aug 30 2017 36582 1

Aug 30 2017 36582 1

Study: FSBOs Net ‘Significantly’ Lower Profits

DAILY REAL ESTATE NEWS | FRIDAY, AUGUST 18, 2017

For-sale-by-owners tend to sell their homes for lower prices than homes sold through traditional agents via the MLS, and in many cases below the average differential represented by the prevailing commission rate, according to a new study by Collateral Analytics

The study examined the price differences between homes sold through traditional agents versus those sold by FSBOs from 2016 to the first half of 2017.

Some homeowners may be tempted to try to avoid commission costs to a broker and try to sell the home on their own. But that can backfire and turn into a much lower sales price, the study found.

Even successful FSBO sellers achieve prices “significantly below” those from similar properties sold more traditionally via REALTORS®, the study found.

The authors found that the differential in selling prices for FSBOs when compared to MLS sales is “remarkably close to average commission rates.” A FSBO sale, on average, nets nearly a 6 percent lower price than an MLS sale for a similar property. 

“Assuming that both buyers and sellers pay the commission, one might have expected something less than this average,” the researchers note. “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 a commission rate.”

Source: “Saving Real Estate Commissions at Any Price,” Collateral Analytics Research (Aug. 16, 2017)


Tim Dolan Headshot
Author:
Phone: 512-294-0296
Dated: August 30th 2017
Views: 498
About Tim: After a successful sales career in the wholesale manufacturing sector which led him to live in Bosto...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Aug 30 2017 36582 1 - Study: FSBOs Net ’
Why Some Homes Sell Faster Than Others - Can Anyone Sell a Home in Austin
Coming Soon In Cedar Park - ***Coming Soon*** Remodeled with
Does Bad Weather Slow Home Sales - Hurricane Harvey stormed

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Premiere Team Real Estate
13809 Research Blvd. ste.275
Austin, TX
512-795-9918