Homes Listed By Agents Net The Owner More Than For Sale By Owner- Even After Deducting Commission

Inman News, a popular source of industry news for real estate agents, recently published an article title “Agents sell homes for more than FSBOs: study”. In this article, the author cited a study done by Collateral Analytics which revealed that homes sold by real estate agents sold for a mean of 5.5% more than FSBO’s (for sale by owner’s).

Being the usual skeptic that I am and also being unwilling to promote industry propoganda just because it sounds good, I decided to attempt to do an analysis of my own based upon the St Louis market. So, what I did, was pull the sales for the past 90 days from the tax records for St Louis County of homes sold in the $150,000 – $250,000 price range (the bulk of the market), then matched up the sales with MLS listings to find the ones that appear to have been listed with a REALTOR versus the ones that were not.

I ended up with 728 sales for that period in St Louis county, 654 of which (90%) appeared to have been sold using a REALTOR, with the other 10% selling without the benefit of a REALTOR. Granted, without checking each sale individually it is impossible to say whether all of the remaining 10% were in fact FSBO’s but I think I have pulled a large enough dataset to allow for some errors but still be accurate overall.

The data shows that homes that were listed with REALTORS sold for a median price of $195,000 which was a median of 118.5% of the county’s assessed value (which is what I used for the benchmark). The listings sold FSBO, sold for a median price of $190,000 and at a median of 111.5% of the county’s assessed value. So, homes listed with a REALTOR sold for 7% more than FSBO’s. Given that the typical listing commission is less than 7%, seller’s that list with agents come out ahead financially even after taking into account the commission and they avoid the hassle, headache and risk of doing it on their own.

(We work hard on this and sure would appreciate a “Like”)

Search St Louis Metro Area Homes For Sale HERE
Thinking of Buying A FSBO? Check This Out
Still Thinking of Selling FSBO? Then This Will Help

Print Friendly, PDF & Email

Comments are closed.