A survey has revealed US home sellers who used a real estate agent got lower prices for their homes than those who sold without any help.
The Consumer Reports research found homeowners who sold with the help of an agent received an average of $5,000 less than the property’s original asking price.
Those who sold without using an agent almost always received what they originally asked, the study shows.
Internet property experts were quick to promote the benefits of selling a house online without the help of a real estate agent.
ForSaleByOwner.com operations vice president Greg Healy said:
“Consumer Reports is a well respected publication and its research should help more people understand the financial advantages of selling their own home.
“In today’s market, where home prices are dropping, it’s more important than ever for sellers to maximize their sales price.”
The Consumer Reports study is similar to the results of research conducted by Northwestern University and Stanford University.
Both of these surveys found that “for sale by owner” sellers receive more money for their homes than those who use real estate agents.
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This makes perfect sense if you think about it. Most agents get paid a percentage of the sale price if and when the sale completes.
They only get paid if they sell – so it makes sense for them to get a quick sale as opposed to getting the best price possible.
The only way to reverse this is to offer a financial incentive to your agent that makes it worth their while to get the best price possible.
Alternatively…you could sell your own home…get the best price possible…and minimise costs.