AgentTechnology

Agents sell homes for more than FSBOs: study

Contradicting previous research, new study finds FSBOs sell at discount
  • Agents tend to achieve higher sales prices for properties than comparable FSBO listings, enough to offset their commission fee, according to a recent analysis.

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Academic research has often cast doubt on the value of real estate agents, but a new study will come as music to their ears. It suggests that homeowners will net roughly the same proceeds whether they sell through a real estate agent or take the FSBO (for-sale-by-owner) route. [gview file="https://www.inman.com/wp-content/uploads/2017/08/CA-RESEARCH-Saving-Real-Estate-Commissions-at-Any-Price-1.pdf"] That's because agents tend to achieve higher sales prices for properties than comparable FSBO listings -- enough to offset their commission fee, according to an analysis released by automated valuation model (AVM) provider Collateral Analytics. This makes a strong case for hiring an agent, considering that agents allow homeowners to reduce the work, risk, and time of selling a home, said Dr. Michael Sklarz, the CEO of Collateral Analytics and a co-author of the study. "Overall it is clear that FSBOs have a low probability of selling, and if they do they will likely net the ...