With the current Real Estate market being a sellers paradise, many home owners, when selling their home, are faced with the dilemma of going it on their own or getting a realtor.
Research has often cast a dark cloud on the value of real estate agents, but a new research is looking to shatter this long-held ideology. This research suggests that homeowners will get about the same amount after closing whether they sell through a real estate agent or take the FSBO (for-sale-by-owner) route. The reason for this is agents tend to achieve higher sales prices for properties than comparable houses whose owners have decided to sell without an agent. On average the sales price agents are able to achieve is enough to cover their commission fee, according to an analysis released by automated valuation model (AVM) provider Collateral Analytics.
“This makes a strong case for hiring an agent, considering that agents allow homeowners to reduce the work, risk, and time of selling a home”, said Dr. Michael Sklarz, the CEO of Collateral Analytics and a co-author of the study.
“Overall it is clear that FSBOs have a low probability of selling, and if they do they will likely net the same or less after closing issues, plus they are more likely to screw up on disclosures which may lead to lawsuits after the fact, when buyers discover material facts not disclosed,” added Norman Miller, who produced the study with Sklarz and is a real estate professor at the University of San Diego.
When it come’s down to it using a real estate agent will save you money by saving you time and protecting you from mistakes you would make on your own. So do yourself a favor and hire a realtor instead of trying to “save money” by going it alone.