The December 24th edition of Banker and Tradesman features an interesting page-one article on the FSBO market. The percentage of For Sale By Owner properties in Massachusetts has remained steady over the last 2-3 years. That might be surprising given the growing number of companies that offer limited marketing for FSBOs and the amount of shared information online.
The Massachusetts Association of Realtors believes it’s found the “fly in the ointment.” Though homeowners save on the typical 5-7% commission, there is a dramatic difference in sales price: in a MAR 2006 survey, the median sale price for FSBOs was $312,000, compared to agent-assisted sales at $385,000. The math shows a net gain for homeowner’s using agents:
$385,000 – median agent-assisted sale
- $19,250 – agent commission (5%)
$365,750
After the commission is paid, the agent-assisted homeowner got $53,750 more than the median FSBO sale!
What are the reasons for the discrepancy? The Banker and Tradesman article points to a number of tools that agents have: greater marketing exposure, proper pricing, expertise in negotiations and proper disclosures. The article also sites that these tools are more important in a market such as this.
Source: http://www.bankerandtradesman.com/pub/5_316/residential/198256-1.html
For more information, email us at gibsonSIR@sothebysrealty.com or visit our website at http://www.gibsonsothebysrealty.com/ .
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