Some sellers would love to save on the real estate commission and think if they put an ad in the paper or place a sign in their yard, they will be able sell their property and save on the commission for themselves. Oh really? The facts just don't go along with that theory.
According to many arms reach studies over the years, the same conclusion has been upheld. The old studies showed that a seller selling his own property and doing all the work got on average 8% less than asking price. Now that has changed!
Now the current studies show much less since the housing bubble as investors are looking for deals and prey on F.S.B.O.'s (For Sale by Owners) to take advantage of them. The average is now 28% below askng price. Now I believe some of that is sellers overpricing their homes, and agents are experienced at pricing their listings more realistic.
With buyers looking to save the commision and sellers trying to do the same, somebody always loses and the chance for legal exposure rapidly rises too! Both parties cannot save the commission. The buyer feels they have earned it because they’ve had to find the home, determine its value and negotiate with the seller. They had to arrange their own financing, title and inspections. One of the most common reasons buyers want to deal directly with the seller is because they feel they can save the commission. It’s a valid consideration but interestingly, it’s the same reason the seller isn’t employing an agent; they feel they can save the commission.
The seller equally feels that they have earned the commission because they have incurred all of the marketing expenses and have had to research value, financing, title work and make decisions, invested hours upon hours to be available to show the property, hold open houses and answer inquiries.
The average agent sells a home within 96.5% of asking price. According to ARMLS, my homes have sold for 99% of asking price on average for the last 14 years. Prior to then, ARMLS records were deleted.
So a Realtor pays for himself, protects your interests from legal concerns, properly executes a successful marketing plan, and frees you to do other things in your life!