Statistics on FSBO vs. Agent Selling

Mention that you’re planning to sell your home and you will, immediately be given unsolicited advice as to whether you should go at it on your own or not. There are staunch believers in selling FSBO, and those who will swear by the securing the assistance of real estate agents. It would be difficult to make a decision based on the information gleaned from hear-say and “personal experiences”. In 2003, in an attempt to provide home sellers with more factual data comparing the benefits of FSBO and Agent Selling, an independent research group conducted a random online survey on over 3,500 home sellers.

The results of the research tackled three aspects namely profit margin; speed of sale; and price retention; all of which were deemed to be of utmost importance to home sellers.

The research showed that, given an “average selling price average purchase price” (to make all things equal) home owners who sold their properties without the help of agents had 6% more gross profit than those who relied on agents. Factor in the 6% agent fees then the profit of those who worked with agents would be reduced even further. Generally, the gross profit earned by FSBOs is 59% compared to about 42% from those with agents.

In terms of selling faster, many believe that homes that are handled by real estate agents sell quicker since they have access to a huge database of buyers, sellers and the like. This belief, however, was debunked as the research showed that the average length of time home sellers had their properties on the market was 8.1 weeks, compared to 11.5 weeks for those handled by real estate agents. FSBOs sell their homes 3 weeks sooner than those who sell through real estate agents.

As to being to hold firm on your desired selling price, the research revealed that owners who opt to sell homes on their own were more likely to hold on to their asking price (81%) than those who worked with sales agents.

The results of this research show that in general, selling a property without the aid of agents is more practical and cost efficient. It can be used as a guide but, the final decision is still yours to make. You are not obliged to go with what majority says is right. Since this is your property - go with what you feel most comfortable with.