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U.S. study finds ‘for sale by owner’ transactions net significantly lower profits

According to a new study by U.S. company, Collateral Analytics, ‘For Sale by Owner’ (FSBO) transactions tend to sell homes for lower prices than homes sold through a traditional agent via the Multiple Listing Service (MLS).

The study examined the price differences for homes sold through agents compared to FSBO sales for a variety of geographic markets during 2016 – 2017. The study also explored why some sellers chose the FSBO route, in particular the perception of urgency and concerns about commission rates.

Notably, Collateral Analytics found the difference in selling prices for FSBO sales when compared to MLS sales is below the average commission rates, as a FSBO transaction can net a price nearly six per cent lower than a sale through a traditional agent.

Article by: Communications from REIWA

 

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