Agents Sell Homes for More Than FSBOS – New Study Shows

Photo Source: Catalyst Group

You’ll see better results when you use a real estate agent and it won’t cost you more – new study shows.

It is a common belief that you can save money when selling your home by putting it on the market yourself; that way you avoid commissions of real estate agent services. However, a recent study by Collateral Analytics shows that is not the case. The study suggests that homeowners will net roughly the same proceeds whether they sell through a real estate agent or take the FBSO (for-sale-by-owner) route. This is because agents tend to achieve higher sales prices for properties on average than comparable FSBO listings.

The study shows that on average, FSBO listings sold for about 5.5 percent less than comparable properties sold through the MLS, with FSBO listings tending to sell for a little less than their automated valuations and MLS listings tending to sell for a little more. Many sellers think that by selling on their own they are avoiding commissions while netting the same home price less that they would with an agent represented sale, but that is rarely the case.

This research makes for a strong case for hiring an agent. Agents help reduce work, risk, and reduce the time of selling a home. More than that, they posses marketing expertise, including knowledge of how to stage a home and the best repairs to make. Second, in contrast to FSBO listings, MLS listings are generally syndicated to broker websites, exposing the home to a much larger buyer population.

“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.

Producers of the study were also quick to point out that the 5.5 percent differential “is remarkably close to average commission rates.” Showing that, other benefits of using an agent aside, using an agent doesn’t cost sellers more.

The valuations were generated by Collateral Analytics’ software. To control for property attributes, such as home size and location, the authors took what they said was an original approach: they compared sales of MLS listings and sales of FSBO listings to automated valuations of those properties. Sklarz noted that in the past studies have shown up with differing results because, “they mostly did aggregate comparisons while here we do a micro level individual property control study, the most detailed ever undertaking.”

Th full study can be found here.

Agents Sell Homes for More Than FSBOS: Study [InMan]

Collateral Analytics [Collateral Analytics]

Saving Real Estate Commissions at Any Price [Collateral Analytics]

Photo [Catalyst Group]

Tesla: Bringing Together Luxury and the Green Initiative

Screen Shot 2017-04-25 at 12.06.30 PM

In November of 2016, Elon Musk, Tesla Motors Inc Chief Executive finally won approval from shareholders to purchase SolarCity Corp, the largest manufacturer and installer of solar panels. Tesla began taking orders for its new solar roofing at the beginning of April, below is a little history of how this came to be and what we can expect from here.

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Beautiful Stucco Villa in Newton, Massachusetts

radcliffe

37 Radcliffe Road, Waban

Newton, MA 02468

$1,795,000

Exquisite Stucco Villa set on a commanding promontory with views of the Charles River. First time available after many generations of ownership. Well maintained with upgraded systems throughout including 4 zones of central air, central vacuum and underground exterior lighting. 5 Bedrooms/ 3 1/2 Baths, eat-in cherry kitchen with Subzero refrigerator, Viking cooktop and wall ovens. Floor plan includes first floor office and separate den with fireplace, a second floor library and a semi-finished rec room in the lower level. There are two garages plus an electrified (un-insulated/ unheated) outbuilding perfect for a home studio or even a third garage for off season furniture and toys such as motorcycles, kayaks, bikes and boats. The large lot has both a front and a rear driveway + extra untaxed square footage based on a paper street that will probably never be finished. A rare opportunity to purchase a heirloom property in a fantastic commuter location only minutes from 9 & 128.

 

Price: $1,795,000

Bedrooms: 5

Bathrooms: 3.5

Total Rooms: 15

Lot Size: 29190 sq. ft.

Year Built: 1924

For more information, visit Castles Unlimited®. 

Jim Lowenstern

(617)-733-8280

Castles® Luxury Index for 2017

deldiospoolView this year’s index and the index of years before now.

As the year kicks off for 2017, various luxury items are compiled to showcase the index for the year. The index is a base point of comparison that derives from the average price of all the top, most expensive items within a category and is then divided by one million.

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Beachfront Estate in Turks and Caicos

Point House rests on the northern beach of Parrot Cay boasting 5 bedrooms over 7,000 square feet of luxury living space. Bordering the pristine Nature Reserve, Rocky Point, Point House enjoys solace and serene privacy. Not far away are the COMO Parrot Cay award-winning resort amenities and facilities. Continue reading