In Denver’s hot market, it’s tempting to think of selling your home yourself. Why pay commission to a real estate broker, after all, when people are clamoring for homes?
The answer is that you may be better off with a real estate broker, even considering the commission.
According to a new study, homes sold by their owners bring significantly lower prices than those sold by professionals. Titled Saving Real Estate Commissions at Any Price, the study was conducted by Collateral Analytics. It compared for-sale-by-owner (FSBO) homes to those listed by real estate brokers, using data from 2016 and the first half of 2017.
The findings indicate that FSBO homes sell for an average of nearly 6% less than homes sold by brokers. “It appears that many sellers are avoiding commission while netting home prices less than they would with an agent-represented MLS sale,” notes the study. “They are avoiding commissions at any price, even one that exceeds a commission rate.”
Even in a hot market, it pays to hire a professional. As REcolorado notes: “Selling your home as a for-sale-by-owner involves greater risk for mistakes during the real estate transaction, increased stress during the home sale, and lower home sale prices.”
By contrast, using a real estate agent can provide you with knowledgeable guidance and referrals for any resources you may need during the sale. An agent can also save you time, and what’s more, you will likely net more money on the final transaction. A triple win!