Agents Sell Homes for Thousands More Than Owners

Picture this: A home owner wants to sell their house, so they stick a "For Sale By Owner" sign out front. They figure that selling without an agent will save them big money on a commission, while only requiring a bit more work on their part. Sound familiar? In fact, 48% of people selling without an agent cite this as the primary reason why they chose to do so. While this financial logic may seem reasonable, the reality is that homes sold through a trained real estate agent sign for an average of $39,000 more than those sold by owner!

Why shouldn't you consider selling your home on your own? First of all, the amount of work involved is likely more than you think. A typical home sale involves marketing the residence through several media formats, meeting with and talking to potential buyers, staging open houses, knowing closing regulations, and more!

Secondly, an agent is generally much better at negotiating a higher sale price for your home. According to the National Association of Realtor's 2015 Home Buyers and Sellers Profile report, homes sold by owner had a median sale price of $210,000. Conversely, homes sold with the assistance of an agent closed for $249,000 - $39,000 more than those sold by owner.

While sales by owner still happen regularly, it would seem that increasing numbers of sellers are realizing the error of their ways. In 2015, only 8% of all homes sold in the United States were sold by owner. This figure represents the lowest rate since data has been collected (1981), and has been steadily declining since 2004 when it stood at 14%.

In case you were wondering, about 38% of homes for sale by owner are sold to a friend, neighbor, or family member. The median sale price of these homes was only $151,900. When you consider the average closing price obtained when selling through an agent ($249,000), this represents a nearly $100,000 friend discount. Those are some friends worth having!

Hopefully this blog post has made you reconsider putting that "For Sale By Owner" sign out front. Instead, pick up the phone and talk to your local real estate professional. You'll be glad you did!

Source: Selling Your Home Solo to Save Money? You’ll Actually Make Less Than You Think

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