New study by Economists at Northwestern shows that FSBO sellers do just as well as those sellers with Realtors! Now if we could just figure out a way to buy a home without a realtor involved....
(Best I can tell, in California, there doesn't seem to be any incentive for a buyer to not use a realtor because they don't get to keep the realtor commission if they don't use one...I'm still a little shaky on the exact details here in CA.)
According to today's the NY Times:
"The conclusion, in a study to be released today based on home-sales data from 1998 to 2004 in Madison, Wis., is that people in that city who sold their homes through real estate agents typically did not get a higher sale price than people who sold their homes themselves. When the agent’s commission is factored in, the for-sale-by-owner people came out ahead financially."
"The findings fly in the face of studies by the National Association of Realtors. The group has said that houses sold via its members’ local multiple listing services get a 16 percent premium over homes sold by their owners. The economists’ study is likely to be seen as ammunition for critics and lower-cost competitors who question the need for 5 or 6 percent commissions — which deliver about $60 billion a year to agents and their employers."
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4 comments:
Was the study limited to Madison, Wisconin? I'd be interested to hear the California numbers if they're available.
I have always believed that ad campaign by NAR was questionable. When you factor in the commission, that has to have an effect on the savings.
Yes, it was limited to Madison Wisconsin. They have a specific FSBO for that location which made the study easier to do.
Funny thing about this whole argument by NAR is that if realtors truly did get that much more for a comparable sale, then savvy buyers would only purchase FSBO. Since that doesn't occur, it means realtors are essentially involved for the seller’s convenience.
Exactly! But buyers are unable to draw that conclusion. Imagine the new slogan: "Only NAR guarantees buyers pay 16% more for their home!"
BT, here are some links for you to research.
http://www.ziprealty.com/index.jsp
http://www.buysiderealty.com/
There's also a place called Redfin, but no homes listed in Sacto area. With your researching skills, you could quite easily work with BuySide,is my opinion.
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