The $31,800 question. Do you need a Realtor?
In the NAR blog they recently posted that the Cost of Selling without a Realtor is an average of $31,800. Based on the latest 2005 NAR Profile of Home Buyers and Sellers. This is based on the national average home price and the survey number indicating a 16% gain in price by using a Realtor.
“The median home price for sellers who use an agent is 16.0 percent higher than a home sold directly by an owner; $230,000 vs. $198,200; there were no significant differences between the types of homes sold.”
I would love to know exactly how did they come up with these numbers? Moreover, as a follow up, another great study would be to measure the difference between Flat Fee MLS listed homes, and the average price gain on a home that is listed with a full service broker. Do full service brokers make a difference, or is it merely the marketing magic of the MLS that make this price gain possible?
May 31st, 2006 at 11:36 am
Its all in the hand holding, Thats what everyone gets paid for!!!!!
July 1st, 2006 at 11:15 pm
Yes, I think that is an important study, though I am not sure that they included minimum service flat fee MLS listings, as it appeared to be focused on limited service listings, though I could be mistaken. Regardless, I discussed the study here: http://www.flatfeemlsmarketing.com/so-what-is-a-realtor-really-worth/
July 1st, 2006 at 8:26 pm
A study was done by the Texas A & M Real Estate Center of 40,000 or so transactions and found that listings handled by flat fee or discount brokerages sold for 1.7% less and took 17% longer to sell.