{"id":1942,"date":"2017-08-24T10:00:07","date_gmt":"2017-08-24T10:00:07","guid":{"rendered":"https:\/\/thezakariagroup.com\/study-fsbos-dont-save-real-estate-commission\/"},"modified":"2017-08-24T10:00:07","modified_gmt":"2017-08-24T10:00:07","slug":"study-fsbos-dont-save-real-estate-commission","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/study-fsbos-dont-save-real-estate-commission\/","title":{"rendered":"Study: FSBOs Don\u2019t Save Real Estate Commission"},"content":{"rendered":"<div>\n<p><img fetchpriority=\"high\" decoding=\"async\" width=\"648\" height=\"354\" src=\"http:\/\/d39ah2zlibpm3g.cloudfront.net\/wp-content\/uploads\/2017\/08\/21161243\/20170824-Share-STM.jpg\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"Study: FSBOs Don\u2019t Save Real Estate Commission | Simplifying The Market\" style=\"display: block; margin-bottom: 5px; clear:both;max-width: 100%;\" srcset=\"http:\/\/d39ah2zlibpm3g.cloudfront.net\/wp-content\/uploads\/2017\/08\/21161243\/20170824-Share-STM.jpg 750w, http:\/\/d39ah2zlibpm3g.cloudfront.net\/wp-content\/uploads\/2017\/08\/21161243\/20170824-Share-STM-549x300.jpg 549w\" sizes=\"(max-width: 648px) 100vw, 648px\"><\/p>\n<p>One of the main reasons why <strong>For Sale By Owners<\/strong> (FSBOs) don\u2019t use a real estate agent is because they believe they will save the commission an agent charges for getting their house on the market and selling it. A new <a href=\"http:\/\/collateralanalytics.com\/wp-content\/uploads\/2017\/08\/CA-RESEARCH-Saving-Real-Estate-Commissions-at-Any-Price.pdf\">study<\/a> by <em>Collateral Analytics<\/em>, however, reveals that FSBOs don\u2019t actually save anything, and in some cases may be costing themselves more, by not listing with an agent.<span id=\"more-36076\"><\/span><\/p>\n<p>In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:<\/p>\n<blockquote>\n<p><em>\u201cFSBOs tend to sell for lower prices than comparable home sales, and in many cases <strong>below the average differential represented by the prevailing commission rate<\/strong>.\u201d <\/em>(emphasis added)<\/p>\n<\/blockquote>\n<h4><strong>Why would FSBOs net<em> less<\/em> money than if they used an agent?<\/strong><\/h4>\n<p>The study makes several suggestions:<\/p>\n<ul>\n<li><em>\u201cThere could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids on with the logic that the seller is \u201csaving\u201d a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.\u201d <\/em>In other words, \u2018bargain lookers\u2019 might shop FSBOs more often.<\/li>\n<li><em>\u201cExperienced agents are experts at \u2018staging\u2019 homes for sale\u201d<\/em> which could bring more money for the home.<\/li>\n<li><em>\u201cProperties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.\u201d<\/em> If more buyers see a home, the greater the chances are that there could be a bidding war for the property.<\/li>\n<\/ul>\n<h4><strong>Three conclusions from the study:<\/strong><\/h4>\n<ol>\n<li>FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.<\/li>\n<li>The differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%.<\/li>\n<li>The sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.<\/li>\n<\/ol>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>If you are thinking of selling, FSBOing may end up costing you money instead of saving you money.<\/p>\n<\/div>\n<p class=\"wpematico_credit\"><small>Powered by <a href=\"http:\/\/www.wpematico.com\" target=\"_blank\">WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the main reasons why For Sale By Owners (FSBOs) don\u2019t use a real estate agent is because they believe they will save the commission an agent charges for getting their house on the market and selling it. A new study by Collateral Analytics, however, reveals that FSBOs don\u2019t actually save anything, and in [&hellip;]<\/p>\n","protected":false},"author":101010,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[100,106],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Study: FSBOs Don\u2019t Save Real Estate Commission - The Zakaria Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thezakariagroup.com\/study-fsbos-dont-save-real-estate-commission\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Study: FSBOs Don\u2019t Save Real Estate Commission - The Zakaria Group\" \/>\n<meta property=\"og:description\" content=\"One of the main reasons why For Sale By Owners (FSBOs) don\u2019t use a real estate agent is because they believe they will save the commission an agent charges for getting their house on the market and selling it. 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