Local brokers and agents want to sell your home using their services. They are more than happy to tell you that selling your home For-Sale-By-Owner (FSBO) is a mistake.
Unfortunately, paying a commission to sell your home is expensive and erases years of equity you worked hard to save and build in the home. Is a broker and agent worth the cost? The research says no!
Independent studies from America’s top economists and universities give an unbiased look at the For-Sale-by-Owner versus real estate agent dilemma. No fancy pitches or propaganda here. Just smart unbiased people revealing the findings of their studies.
Let www.showpal.com make your selling For-Sale-By-Owner hassle free and save you thousands!
Realtor Sponsored Studies are Misleading: Get the Facts on Agents vs. FSBO With These Independent Studies From Stanford University, The University of Chicago and Northwestern University.
The National Association of Realtors would have you believe that For Sale By Owner (FSBO) homes, sell for much less and the agent provides immense value in the process. The reality is that is simply not the case.
Multiple independent groups have taken on studies to examine the financial impacts of listing a home with an agent or going the FSBO route. The data tells a complex and somewhat disheartening story. The truth is, some agents may not do what's best for their client and unfortunately, it's hard for homeowners to sort through the agent marketing propaganda to find the facts.
Here is a short list of independent studies and working papers that show some pretty surprising stats about agents versus FSBO.
Forbes did a great job of summarizing this study and found that the studies cited by agents are often misleading; based on small sample sizes and uncontrolled variables. "The Wisconsin study found a 0% price difference between homes sold directly from sellers to buyers without real estate agents (FSBOs), and homes sold with the help of real estate agents."
"Our central finding is that a seller’s use of a broker/agent reduces the selling price of the typical home by 5.9 to 7.7 percent which highlights that agents are incentivised to sell the home quickly. This indicates that agency costs exceed the advantages of brokers’ knowledge and expertise by a wide margin."
This study also suggests that home sellers continue to use brokers because they may be poorly informed about the true performance of all their options. This particular study was circulated among a population of homeowners and subsequently the use of a broker plummeted by 30.9% in the following year.
"The raw price comparison shows that the average sale price of homes that sell on FSBO is higher than the average price of homes that sell with a realtor. After controlling for houses and seller heterogeneity, we find no support for the hypothesis that the MLS delivers a higher sale price than FSBO." Considering that realtors charge a 6% commission versus a comparatively small flat fee for FSBO, FSBO sellers come ahead financially."
This particular study found that agents behave differently when selling their own homes versus selling their clients' homes. The agent-owned houses stayed on the market almost 10 days longer and sold for about 3.7 percent more than comparable houses owned by the people who hire real-estate agents to represent them. The agent has an incentive to urge the homeowner to forgo waiting for what could be a substantially higher offer for a quick sale at a lower price, because the incremental value to the agent is often not a big motivator.
"The finding that agent-owned homes are on the market longer and sell for more suggests that agents do deploy their specialized knowledge to maximize their profits rather than those of the homeowners they represent."
This study shows that sellers who joined a for-sale-by-owner (FSBO) website got at least as much for their homes as sellers who did their real estate business through the use of an agent and the Multiple Listing Service (MLS). The FSBO sellers ended up with a significantly enhanced net sale price because they didn't have to pay the brokerage commission that real estate agents charge sellers.
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Independent Home Appraisal
The home value report or independent home appraisal and comparative market analysis helps guide you to a fair market value for your home.
Home Value Report
Comparable Market Analysis
Professional Real Estate Photos
Each plan comes with up to 20 professional real estate photos or editing of existing photos. Want more photos? Additional photo editing or photos available to purchase directly from the photographer for $10 per photo.
Listing on Zillow, Trulia and ShowPal.com
Listing on the MLS
Listing on the MLS offers you the best opportunity to sell your home. However, listing on the MLS requires that you be willing to pay a buyer's agent if they bring a buyer that results in the sale of your home. The standard commission is 3%.
The lock-box is only accessible by ShowPatrol for your scheduled showings.
Online Showing Booking & Alert System
You set when your home is available for showings. Buyers then schedule within the availability of your home. All showings are scheduled for 1 hour.
ID Verification of Touring Buyers
Standard FSBO models do not perform ID verification of people coming into your home. This leaves you susceptible to crimes by individuals posing as prospective buyers but with criminal intentions.
Showing Assistance with ShowPatrol
With ShowPatrol you do not have to manage and attend showings. We do it for you! ShowPatrol lets buyers into your home and locks it back up at the end of a showing.
ShowPal Property IQ
Answer any buyer's question on-demand with Property IQ. Upload any document that helps buyers learn more about your home or neighborhood.
Online Offer Platform
Receive, Negotiate and Accept Offers Online. Review all offers in your offer dashboard.
Real Estate Agent Offer Assistance
If you choose the MLS plan, our partner broker and agents present and negotiate offers on your behalf.
Integrated Real Estate Attorney
We have partnered with a real estate attorney to help the seller and buyer draft a legally binding purchase agreement once you have accepted an offer. The attorney also performs vital tasks to prepare your home for closing and delivers necessary documents to the closing agent.
Earnest Money Collection From Buyer
With our standard and premium plans our partner real estate attorney collects the buyer's earnest money and deposits it in the law firm's trust account. In the MLS plan, our partner real estate broker collects and deposits the buyer's earnest money in the brokerage trust account. In both cases, the earnest money is held until closing and is recorded on the settlement statement.