Sellers tempted to try to sell their home on their own to avoid commission costs may get a much lower sales price. According to a new study by Collateral Analytics, sellers not using a real estate licensee achieve prices “significantly below” those from similar properties sold through REALTORS®. During the study period of 2016 to the first half of 2017, FSBOs sold for lower prices than homes sold through agents via the MLS, and in many cases below the average differential represented by the prevailing commission rate. In other words, the sellers net was lower than the net they would have received if they used a real estate licensee. One reason is that almost all homes for sale here in Arizona are in MLS, so a seller severely limits the property’s exposure if not listed in it. Agents also provide pricing expertise unavailable to sellers who forego professional representation.
